Traders braced for turbulence in commodities

31 August 1998

Traders braced for turbulence in commodities

Commodity traders are preparing for further turmoil in the markets this week as global deflationary pressures are exacerbated by hard-hit commodity producers, like Russia, anxious to export.

The Chicago-based Commodity Research Bureau index of 17 leading commodity prices fell to its lowest level since 1977 last week. Analysis fear that commodity prices may sink still lower if the Asian and Russian financial crisis spreads.

Prices for rice, rubber and vegetable oils have already dropped.