Technical analysis by Bank of America Corp. sees commodities falling 11 percent in the upcoming weeks to their lowest levels since May 2010.
The Continuous Commodity Futures Price Index of 17 raw materials has been described as “on the edge of breaking down” by MacNeil Curry, the head of foreign exchange and interest-rate technical strategy at Bank of America in New York, and is reportedly expected to drop to 447.
An index of the six primary industrial metals traded on the London Metal Exchange is set for a second weekly drop, as are gold and silver for immediate delivery. In Chicago, corn and wheat are falling for a third consecutive week. Crude oil is charting a declining course for a fifth week in New York and arabica coffee reached its lowest point since 2006 yesterday.
The commodities measures closed yesterday at 503.99, marking a 9.1-percent drop for the year. Curry warns that a sustained break of 500, which he interprets as two closes below the 500-mark, would open an additional 10 percent slide.