But now there seem to be another risk looming. For some time, there was much talk about a burst in commodity markets. There were gradual adjustments in commodities during last six months. But last few days we saw the burst happening. Gold prices were plummeted by about 14% within couple of days. Crude oil followed the trend by losing about 6% within three days.
Will this be a short term adjustment?
Is it actually the start of the burst?
How this will affect our two main commodities? Tea and Rubber.
Rubber prices are always aligned with crude oil prices. If you study the past price charts for rubber and oil, both carry the same pattern. Still rubber prices are intact in the world markets. But will it follow the history?
Tea is indirectly following crude oil prices as major tea buyers are oil producing nations.