The huge surges in the commodities markets have ended, at least temporarily.  Oil has dropped by 44%.  Gasoline prices have fallen by 24 cents in the last week to a national average of $3.21/gal (in July, prices were $4.11/gal). 

Corn, soybean and wheat prices have also dropped tremendously.  

Big increases in world wheat production because of increased acreage in the United States, Canada, Russia and much of Europe have brought wheat prices to less than $6 a bushel today from nearly $13 in March.

Soybean prices have dropped to $9 a bushel from $16 since July, in part because of a record crop in China and a slowdown in Chinese imports. Corn prices are also easing amid expanded supply.

But will commodities continue tanking, or are will they generally go up.

A theory among economists is that commodity prices are still at the beginning of a steep fall as the credit squeeze takes the world economy into a deep recession. ...

 But many economists say a lasting price collapse is unlikely because the emerging middle class and growing populations in developing economies will continue to have strong appetites for fuels and metals.

In the 1970's, they said grains and oilseed prices would not come down because of world population.  They were wrong.  The cause and effect of consumer demand vs. farmer supply is often outweighed by many other factors.

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