Commodity wipeout or the recovery that wasn’t

$DJAEN, $DJAPR, $DJAAG and $DJAIN, three months, priced daily

Oh the forces of deflation are strong! What’s happening to commodity prices? In spite of claims about an economic recovery, we’re seeing a broad decline in commodity prices over the past three months. The chart above tracks $DJAEN, a measure of energy commodities (grey area curve in the background), $DJAPR (red line), a measure of precious metals prices , $DJAAG (green line), a measure of agricultural commodity prices and $DJAIN (blue line), a broad measure of industrial metals prices.

Sharp declines across the board. Seems like energy is the only commodity that’s increasing. Now this is curious, generally in an economic recovery we see commodity prices surging. And, of course, there are all the stories about America’s “cheap energy”. Rather odd.

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