Oil, wheat, natural gas, corn and other raw materials reach near or lower than March prices|CC0 1.0
Prices of raw materials—oil, wheat, copper, corn etc.—are dropping. And while there is hope inflation might be easing, there are others who warn it’s a recession red flag.
Though some raw materials prices are high, natural gas, US crude, wheat, corn, soybeans, cotton, lumber and copper have all ended up cheaper than they were at the end of March.
-
US crude slipped to $106 from $120 a barrel.
-
Cotton lost more than a third of its price since early May.
-
Natural gas closed the quarter 3.9% lower.
Mixed opinion
“Moderating commodity prices are clear evidence that inflation is cooling,” said Louis Navellier, chief investment officer at Reno, Nevada.
But other experts differ, saying that falling commodity prices indicate a slowing economy.
Helima Croft, head of RBC Capital Markets, said: “Fears of a global recession have become front and center, eclipsing the inflationary concerns.”