Weekly Global Commodity Overview - - - What's a Deflationary Spiral? - - - A Look at Copper, Lean Hogs and Soybeans

Global commodity markets continue to struggle to maintain their price value. Albeit there have been sprinters out there including cocoa, orange juice, copper and coffee. But these bullish sprinters also have a shelf-life. Speculative buying is the key rocket fuel. Once this spec buying fuel runs-out (as human emotion of greed turns to hope of a price recovery), prices fallback, often sharply. The selloff is on . . . .

Remember, bull markets classically spike, bear markets lay on-the-bottom.

The cattle market remains amazingly resilient. But, not so much for hogs and chickens. Oil prices continue to struggle to the chagrin-of-OPEC. Supply manipulation has far less impact in any falling demand, rising inventory market. Price weakness comes despite ongoing oil production cuts..

The bottomline; Global commodity prices are in-decline. Dare we say the unspoken word ‘deflation’ to central bankers and main stream media?

But first things first . . . . What is a deflationary price spiral? What is triggering this downward commodity momentum? And lets take a look at price action over the past week. What’s going up? What’s going down?

Lets look at some key charts telling an economic story including copper, soybeans and lean hogs . . . . .

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