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The start of the commodity decline???

Discussion in 'The Economy' started by AsxBroker, 30th Oct, 2008.

  1. AsxBroker

    AsxBroker Well-Known Member

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  2. Young Gun

    Young Gun Guest

    doesn't surprise me,

    high commodity prices have led to the start up of many marginal mining operations (not that Boart Longyear is a mining operator).

    A drop in commodity prices makes many of these mines unfeasiable. But those employess should be quickly absorbed by other lower cost mines.
     
  3. C3PO

    C3PO Well-Known Member

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    Adelaide, SA
    Similar situation for other commodities, although for me the decline started a little earlier, generally in August. Take a look at soybeans this year (weekly chart) as an example:

    CBOT - Soybeans Quotes Open Auction

    Similar story for corn, wheat, palm oil, the list goes on. You know what they say, nothing cures high prices like high prices :)