Regional Specialists Review May 2011
Overview: Commodity prices suffered a tectonic shift recently. With prices at apparently speculative levels, a correction was inevitable. This has triggered talk about whether we're in a rotation from "risk" trades to a more sedate stage for markets or whether commodity prices will resume their ascent.
This pause has been significant and, even if prices stabilize at current levels, we believe it represents a material "sale sign" for users of commodities and could serve to support future consumer and business demand, economic growth in countries that are net users, and global earnings.