Commodity investors see the end of plunge

It took 21 months to overcome the decline following commodity prices plunged in 1997. After plummeting alongside the global economy in 2008, commodities touched the floor in only eight months. The Bloomberg Commodity Index has been declining for four years. The benchmark, from its most recent high in May 2011, is off by half and snapping its lowest levels of the 21st century. Investors are asking if the commodity prices have finally bottomed, and have expressed their woes the stock market is overhauled and bond prices are at risk of interest rate hikes. “It's top of mind for anyone looking at the market,” said Norbert Ruecker, Head of Commodities Research at Julius Baer. Many investors believe the plunge in commodities is over as prices are lower than the production cost. As a response, unprofitable producers are cutting back.

News are provided by InstaForex