Fate of Commodities Hangs in Balance

choi

Liam Plevin, As China Goes, So Go Commodities; The Outlook for global prices depends heavily on whether the country maintains its voracious appetite for oil, copper and other products. Wall Street Journal, Dec 14, 2011.

My comment:
(a) Thers is no need to read the article.
(b) A bar chart accompanying the article:

"Market Mover l  Big appetites, big price increases
The percentage change in China's consumption of these commodities, 2000-2010, and in their prices, Dec 31, 2000, to Dec 31, 2010

OIL +92% CONSUMPTION
      +241% PRICE

COPPER 296%
              424%

SOYBEAN 147%
                179%
COTTON 98%
               133%

Sources: US Energy Information Administration; International Copper Study Group; US Department of Agriculture; SIX Telekurs; IntercontinentalExchange Inc"

Of course China's import did not account for every penny of price increases for these commodities. Nobody is saying that. It is just that China's import contributed, likely in large part, to price increases.