Consumers, Rejoice: Clothing and Food Prices Should Fall Soon

Over the past year, the prices of many commodities have risen at record paces to record highs, but recently, those prices have begun to plunge, and consumers should begin to see the beneficial effects of those declines fairly soon. Oil continues to be an high-priced exception, but the typical American shopper is probably going to see some relief when shopping for groceries and clothing.

Most recent headlines about falling commodities prices have focused on gold and silver. Silver prices have dropped below $40 nearly as quickly as they jumped toward $50. But corn prices fell 2.9% on Monday and another 1.5% on Tuesday. Corn now trades at $7.16. A jump in the value of the dollar deserves part of the credit. In early April, corn traded at $7.72. Because a large amount of corn is used to feed cattle, the price of beef is likely to tick down as well.

The situation with wheat is much the same. Wheat priced for July delivery dropped to $7.89 recently. Wheat had reached $10 in February, mostly on concerns about the size of the Russian and Chinese wheat crops. Soybean prices have also sold off rapidly from near record highs.

Clothing prices should also begin to drop. Cotton sold for $2.04 a pound in February, but has traded at $1.54 recently.

There are a number of reasons commodities prices are dropping. First, weather-related shortages will probably not be as bad as some analysts had feared: American crop production should be strong this year, and the droughts that plagued China have begun to ease. Concerns about a global slowdown in growth have also raised the specter of a drop in demand for commodity-based products.The economic slowdown could be particularly sharp if China's hot economy begins to cool, which could happen thanks to the Beijing government's tightening of bank reserves there. The manufacturing sector could also slow as demand in Japan and Europe falters.

Many economists had been assuming that discretionary consumer spending in the U.S. would be undermined by the sharp rise in food and clothing prices. That appears less likely now with commodities prices heading back down. Those declines are should prove to be good news for the American economy, and even better news for the American shopper.

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Samir semaan

What I said before that the american people has come back to the market and they are spending more money on domestic as well tecnology things and dining outside the american people are the drive behind the recent boost on the unemployment rate and the progress requires more work much could be done on giving incentives to small business owners that the real job is being created. That 's being said to give confidence to the economy much of supervision is likely to bring more money like the anticorruption office so savings to up to thrillions and the military can downsize their numbers to maintain fiscal responsibility and cut the deficit in half .

May 09 2011 at 11:07 PM Report abuse rate up rate down Reply
1 reply to Samir semaan's comment
zekandzora

Our government has been stolen from us. It does not serve us. We serve the government­. The Revolution­ary War was precipitat­ed over far less oppression from the British Crown than we are now experienci­ng from our own out of control government­. We no longer have of government that is "of by and for the people". Our government is in the total control of the internatio­nal bankers through The Federal Reserve and the huge multinatio­nal corporatio­ns. Pay-offs and bribes, blackmail and threats are their stock in trade for control. They are globalists and want the complete economic destructio­n of the good old USA so we can be peacefully herded into their Utopia which they and their minions refer to as "The New World Order". Hungry people are easy to control. Herr Heinich {Henry} Kissinger has said, "Vee kontrol de nazuns vith oil and vee kontrol zee peoples vith food". Henry has been a water boy for the globalists­, specifical­ly the Rockefelle­r syndicate, for at least 45 years. His power far exceeds that of the President. Zbignev Brezenski, who is a special consultant to the President, has served the same interests for at least 40 years. He too has power above the office of President.

If you look behind the curtain you will see the truth.

May 08 2011 at 6:56 PM Report abuse rate up rate down Reply
freekybig53

I will not believe it till I see it ,the key word in that title is "should" !!

May 08 2011 at 10:51 AM Report abuse rate up rate down Reply
inasctg56

Watch the Nightly Business Report. Information coming right from financial sectors and economists. The value of the dollar is going up, prices coming down, gas down, markets are rallying on manufacturing gains due to better trade agreements and incentives for manufacturing in this country put forth by dems.

May 07 2011 at 8:58 PM Report abuse -1 rate up rate down Reply
1 reply to inasctg56's comment
icemanbill23

Wouldn't that be wonderful news if only it were true. The U.S. Dollar is doomed, prices will not be coming down...not ever. Manufacturing is dead in this country and so thankfully are the dems!

May 08 2011 at 1:05 AM Report abuse +2 rate up rate down Reply
donna.brickston

SHOULD drop, but WON'T

May 07 2011 at 3:59 PM Report abuse +1 rate up rate down Reply
WILLS

For what it is worth - the USDA predicts a ROSEY outlook EVERY year. As to a drought in
China? My dear fellow,
China is mostly in the same climate as the U.S. (AKA it's winter/Spring) and as such, it's planting time - not HARVEST.
I guess flooding a big chunk of MO's farmland does not impact planting? Maybe there doing hydroponic? The weather conditions that impact 70% of this worlds agriculture are still in the YET category and if you wish to figure the future prices of corn,soybeans and wheat, you have to start with what ever weather prevails in the U.S. and Canada - this COMING year. The secondary is the Steppes, which is Russia, Estonia, Poland and a few others. Better be aware that this region has seen major droughts, not only last year, but many times in the past. The one in the 1920's was so bad that we (theU.S.) had to send aid in the form of food. Doug, don't know where you acquired this information, but it sure is rosey and crystal ball. It would be nice if gas came down and the harvest will a boom, but you should also be aware that glyposate (roundup) is starting to fail, plant disease has been on the rise for the last three years and there are soil embedded diseases cropping up. Modern ag. chemicals have made great strides since the 1950's, but there is yet no cure for anything that gets into the soil itself.

May 06 2011 at 3:31 PM Report abuse rate up rate down Reply
tortugatommie

Lies, lies and more lies. "Real" unemployment is between 20% / 22%. People who are no longer eligible for unemployment benefits are not counted. That's just one of several items used to skewer or manipulate the numbers to keep the sheeple placated.

Another big lie concerns inflation. "they", government controlled economists, say inflation is about 2%. "Real" inflation is right at 10% now and projected to be at least 14% by year end. "They", government controlled economist, use what they call "core inflation rate" which excludes the cost increases of energy {oil} and food. They may still be excluding the increased costs of medical care. On that I am not sure. I do know that "they" were excluding medicals costs in the "core inflation rate" 4 or 5 years ago.

The mass media has become what George Orwell referred to as "The Ministry of Truth" in his prophetic novel, "1984". We are in The New World Order.

If you believe the major media everything is A O.K. and getting better. So, "don't worry, be happy".

May 06 2011 at 1:15 PM Report abuse +1 rate up rate down Reply
dukeofdirt

Just consider the source of the article Ariana On Line (AOL)

May 05 2011 at 2:59 PM Report abuse +5 rate up rate down Reply
bjohnhol2

Yes and the tooth fairy will be leaving cash under your pillow! Get real, so long as the government continues to screw with the natural supply and demand factors, as is the case with corn for ethanol, we will suffer with higher prices and shortages than is necessary. Just read the article Bringing home the bacon…

“Low corn supplies is a reason market observers have been predicting corn prices will stay at lofty price levels for the rest of the year, especially since demand for corn from ethanol producers has been strong of late and U.S. meat exports are expected to remain buoyant. “
Marketwatch.com

May 05 2011 at 2:20 PM Report abuse +5 rate up rate down Reply
almagayle50

If gas doesn't come down nothing else will either.

May 05 2011 at 12:12 PM Report abuse +4 rate up rate down Reply