I'm an anorak when it comes to commodities - I blame the movie Trading Places and the Florida Orange Juice futures.
In the last few weeks a huge raft of commodity prices have been gradually falling and the cumulative drops have been quite substantial on some
Wheat, Butter, Soy, Coffee, Cheese, Natural Gas, Coal, Lumber, Rapeseed oil, Palm oil and even Butter! They are all futures, so probably take a 3-4 months to feed into pricing, but it has been a consistent drop and a substantial drop. Refining margins for fuels, especially diesel, have also fallen substantially and will feed into pumps quite quickly all around Europe.
Then add in a weakening dollar (finally) with some banks saying the Euro has turned bullish.
If this starts to put the brakes on factory input costs, you could see the ECB and the Fed pull back on interest rate hikes as inflation forecasts will be quite different to what they currently are.
But the best news is we can possibly look forward to Kerrygold being back under €3.50 in the spring
In the last few weeks a huge raft of commodity prices have been gradually falling and the cumulative drops have been quite substantial on some
Wheat, Butter, Soy, Coffee, Cheese, Natural Gas, Coal, Lumber, Rapeseed oil, Palm oil and even Butter! They are all futures, so probably take a 3-4 months to feed into pricing, but it has been a consistent drop and a substantial drop. Refining margins for fuels, especially diesel, have also fallen substantially and will feed into pumps quite quickly all around Europe.
Then add in a weakening dollar (finally) with some banks saying the Euro has turned bullish.
If this starts to put the brakes on factory input costs, you could see the ECB and the Fed pull back on interest rate hikes as inflation forecasts will be quite different to what they currently are.
But the best news is we can possibly look forward to Kerrygold being back under €3.50 in the spring