Wednesday, June 22, 2011
Just when you thought that commodity prices were correcting and the Asian economies were slowing down and inflation—according to today's FOMC release—was set to decline in coming months, I bring to your attention the fact that the CRB Livestock index (a subcomponent of the CRB Foodstuffs Index, which in turn is a major subcomponent of the CRB Spot Commodity Index) has been setting new all-time highs in the past week. This measure of livestock prices has soared 138% since March 2009. Are speculators hoarding hides, hogs, lard, steers, and tallow? Or is global demand robust and the dollar very weak? My money's on the latter.
Posted by Scott Grannis at 3:46 PM