(snip)"The Commodity Rebate
In the chart below we calculated the 2008 price change of the major food and energy commodities in the CRB index (Corn, Soy, Wheat, Cattle, Hogs, Oil and Natural Gas) and multiplied the changes by the annual per capita consumption of each item. While this method may oversimplify the actual costs, it provides a good idea of how changes in commodity prices have impacted consumers wallets this year. Less than five months ago, the price of oil and other key commodities impacting the consumer were trading at record highs. Because of these price increases, the average consumer was spending an additional $4.77 per day compared to the start of the year.
Five months later, we find ourselves in a situation where these key commodities have now declined by record amounts. As a result, the cost of higher commodities has turned in to the windfall of lower commodities. While consumers were spending an additional $4.77 per day in July, they are now getting a benefit of 4.02 per person per day. On an annualized basis this works out to $1,460 per person."(snip)
of course, with this weekend's announcement by president-elect Obama of a huge new 'make public works jobs' program, along with a 'print the money to pay for it' / 'don't worry about a growing US deficit' explanation, US dollar denominated commodity prices have already reversed direction !
At any rate, the 'talking heads' are now predicting a 'Santa Claus Rally' in both stock and commodity markets through the end of the month at least. However, the basis for this rally is likely to be the direct result of US dollar devaluation rebalancing.



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