Weak Economic Sentiment Sparks Selloff Across Commodities

Fresh worries about the U.S. economy rattled commodities markets, sending prices of several benchmark materials to their lowest levels in months.

Growth-sensitive commodities such as crude oil and copper frequently follow the lead of stock markets as a proxy for demand expectations. The front-month October oil futures contract fell 2%, settling below $72 a barrel for the first time since early July. Gasoline futures slid to $1.8494 a gallon, the lowest closing price since December 2009. Copper fell 1.6%.

via Weak Economic Sentiment Sparks Selloff Across Commodities – WSJ.com.

Oil Falls to Lowest Level in 11 Weeks as U.S. Home Sales Plunge

Oil dropped to its lowest level in 11 weeks as sales of previously owned U.S. homes fell more than forecast in July, boosting speculation that economic growth is slowing and curbing fuel demand.

Futures declined 2 percent as U.S. stocks plummeted after the National Association of Realtors reported purchases of existing homes tumbled 27.2 percent to a 3.83 million annual rate. U.S. crude supplies rose last week amid a 20-year high in petroleum stockpiles, according to estimates of analysts surveyed by Bloomberg News.

via Oil Falls to Lowest Level in 11 Weeks as U.S. Home Sales Plunge – Bloomberg.com.

Prices up for PP, down for PS

North American polypropylene prices appear to have bottomed out and are heading up again, while polystyrene prices in the region fell again in July and could see more of a downslide.

via Plastics News – Prices up for PP, down for PS.

Baltic Dry Index’s 7.5% gain the best in 14 months

The Baltic Dry Index, a measure of commodity-shipping costs, rose the most in 14 months as rents continue to surge for the capesize-class ships that typically haul iron ore.

The gauge climbed 166 points, or 7.5 per cent, to 2,378 points on Wednesday, according to the London-based Baltic Exchange. The advance was the largest since June 2, 2009.

Capesize rents jumped 20 per cent, the most in 31/2 months, to US$29,022 a day, extending August’s gain to 94 per cent.

via Baltic Dry Index’s 7.5% gain the best in 14 months – August 13, 2010.

Purchasing Data

Purchasing data has always been important to supply-chain professionals. Today’s market conditions are making successful negotiations with suppliers even more critical.

Seasoned buyers, many of whom have been purchasing data years, say, more than ever, they need accurate and timely information. Negotiating the best price has become key to survival for many companies.
Luckily finding good purchasing data has become easier. The trick is to plug into the right websites and use this purchasing data to tie what you are paying to actual marketplace conditions.

Suppliers, on their own, will certainly not tell you when their costs go down!

If you found this information about purchasing data useful, we think you’ll find this blog interesting and useful.

Global Wheat Shortage Feared – WSJ.com

Wheat prices have staged the most drastic rise in more than 50 years, as a drought in Russia fuels growing worries that it could lead to a global shortage of the grain.

via Global Wheat Shortage Feared – WSJ.com.