Deflation in progress...the healing

Livemint: Prices of Raw Goods Plunge on Slowdown Slump renews debate over longevity of the commodity super-cycle; glut of raw materials around the world The sudden economic downdraught has caused one of the biggest and broadest declines in commodities prices since the financial crisis, surprising producers and creating a glut of raw materials around the world. From crude oil to copper to cotton, prices were down an average of 9% since late February, based on the Dow Jones-UBS Commodity Index. Crude oil prices, well above $100 a barrel just two months ago, now fetch $84.96 on the New York Mercantile Exchange. Cotton prices have tumbled 22% so far this year. The benchmark steel price in the US for hot-rolled coil is down 13% in two months, according to commodity price reporting firm Platts. The declines mark a sharp turnaround from just a few months ago, when economists were optimistic about the prospects for a US economic recovery, China still seemed to be humming, and commodity supplies were generally tight.