Posts tagged Economic

Commodities are positioned to rise because of the economic growth that has occurred.  This is important information for traders to know because of how commodities can effect other markets.

Commodities prices set to rise further on back of global growth

Commodities prices are set to rise further this year as the global economy expands faster, the International Monetary Fund has forecast, following the biggest annual price increase for raw materials in nearly four decades in 2009.

The IMF said that commodities prices were set to remain high by historical standards over the long term as the industrialisation of emerging countries supports consumption.

“Accommodating this demand will eventually require further capacity expansion in many commodity sectors, with some need to tap higher-cost sources,” it said in a report.

In the shorter term, Thomas Helbling, an IMF economist who specialises in commodities, said global activity was widely expected to expand at a faster pace in 2010, putting upward pressure on prices.    –more