Home > Economy, Trends > Buy Now: Commodity Prices Starting to Affect U.S.

Buy Now: Commodity Prices Starting to Affect U.S.

February 17, 2011

OIL: 2.5% of global oil travels through the Suez Canal. Concerns about Mideast upheavals are starting to affect oil and gas prices around the globe. Our average price in San Diego is $3.47 per gallon; my neighborhood prices are closer to $3.50 and Premium over $3.60. The buzz is gas prices will be increasing through the nation this year. Start thinking about buying a hybrid or electric vehicle.

STEEL: Last week: Reports of an expected 10 percent increase in steel demand in the United States this year sent some steel company stocks higher (Pittsburgh Business Times). So, this is affecting Whirlpool with a $3 billion increase in raw material cost over the last few years. This affects the whole distribution channel resulting in retailers looking at raising their prices this spring. Thinking of buying a washer or dryer? Buy now.

COTTON: Prices are up 44% since the first of the year, and likely to show up in the fall as a 5-7% increase on clothing. Buy your clothes now and/or make a budget to allow for increase.

COFFEE: The cost of arabica coffee, the high-quality bean appreciated by espresso connoisseurs, has surged to a near 14-year high of $2.6675 a pound in New York. (Source: Financial Times)

FOOD: I suggest during these tough times to stock your pantry or cabinets as a hedge against inflation. Rotate your items. Buy on sale. Join Costco or similar to get great deals.

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