World: Commodity markets collapse in July on numerous bearish trends

Commodity markets collapsed in July. Fundamentals were bearish: large, burdensome grain and oilseed crops and stocks in the world, improved weather outlook in the U.S. and Europe, initial harvest results of wheat and barley clearly better than forecast, increasing offers of crude oil, pessimistic forecasts for the world economy, particularly China, political unrest and warfare in Eastern Europe and the Islamic world, H. M. Gauger GmbH said in their August report.

As always in such situations, financial funds rush into markets and accelerate price movements. The question is, whether markets have reached a bottom. Some affirmative indications are: India and Iran announced import duties, farmers are pleading for subsidies, and French farmers started a self-defence by stopping German and Spanish food imports at the border.

As per sources reports, world market prices dropped by around 10% in July.