Falling prices of all kinds of raw materials – corn, wheat, copper and more – are raising hopes that a key source of inflationary pressure may be starting to ease.
Natural-gas prices rose more than 60% before falling back to a 3.9% low in the quarter. US crude slipped from a high of $120 per barrel to close around $106. Wheat, corn and soybeans all became cheaper than at the end of March. Cotton opened, its price has fallen by more than a third since the beginning of May. Benchmark prices for building materials copper and lumber fell 22% and 31%, respectively, while a basket of industrial metals trading in London had the worst quarter since the 2008 financial crisis.