The commodities in commodity prices include all categories, from industrial—iron ore, steel, aluminum, copper—to agricultural—wheat, soybeans, corn, cattle—to precious metals—gold, silver, platinum. The prices of these commodities that sell on the Chicago Mercantile Exchange for the purpose of the definition of commodity prices will be today’s prices. In terms of the Chicago Mercantile Exchange, today’s prices are referred to as the “spot” price. Commodity prices, therefore, refer to all commodities at today’s (spot) prices.
Once the issue with Iran resolves itself, will oil prices crash? Many are saying “yes.” I think they are wrong.
Certainly oil prices are higher than they normally might be because of the ongoing conflict with Iran. And if war breaks out, oil prices will spike even higher.
On the other hand, I have to completely disagree with the position that oil prices will crash…. Read More
Over 80% of the S&P 500 companies that have reported earnings so far for the first quarter of 2012 have beaten analyst earnings expectations. But the rest of the year doesn’t look that rosy…
The Coca-Cola Company (NYSE/KO), an S&P 500 company, beat first-quarter analyst earnings expectations, but stated that prices for aluminum, juice and plastic—commodity prices—increased its costs by 10% over last year, decreasing their profit margins…. Read More
Readers of Profit Confidential… Read More have made their voices heard on the topic of rapid inflation. In our recent survey, over 2,000 of our readers said they believe we are experiencing rapid inflation closer to 10%, while the official government Consumer Price Index (CPI) states that inflation is at 2.9%.
On these pages, I have been detailing the input cost (Cost of Goods) for manufacturers—higher commodity prices—from many parts of the world.
The growth in manufacturing in the U.S. has been flat. Despite this, the Empire State Manufacturing Survey noted that input costs—oil and commodity prices for manufacturers—has risen steadily over the last few months, with February’s high level not seen since the summer of 2011…more rapid inflation (source: Federal Reserve Bank of New York)…. Read More
There is rapid inflation in the system, dear reader, but let’s not speak too loudly about it.
I’ll keep this note to a whisper as we turn our attention to the just-released Institute of Supply Management’s factor index. The institute’s survey of manufacturers throughout the U.S. includes a discussion on commodity prices. Commodity prices are a critical component of manufacturers’ costs, because they are the inputs used to produce all of the goods that consumers purchase in this country.
… Read More