The general price level of the Commodities tumbled to 13 year low.

Continued collapse of prices index Bloomberg Commodity (BCOM: IND), reflecting the prices of 22 commodities continue to fall, and today lost another 1,28% (Bloomberg Commodity Index = 96.3214). The decline is approaching the levels of June 2002.

The composition of the weighted BCOM: IND is:
• ENERGY (35.7% weight in BCOM)
• GRAINS (22.9% weight in BCOM)
• INDUSTRIAL METALS (15% weight in BCOM)
• PRECIOUS METALS (15.1% weight in BCOM)
• SOFTS (6.6% weight in BCOM)
• LIVESTOCK (4.7% weight in BCOM)

Total wider group of assets Commodities lose investment attractiveness in the signals made by the Fed chief Janet Yellen that US basic interest rates will be raised by the end of the year. Against this background and gold lost attractiveness, including a rescue asset, while the dollar continues to appreciate against the euro and the yen.

It should not forget that China is a basic factor in global growth in demand for metals over the past 15 years. Industrial metals marked the longest decline since 2001. In China, domestic demand has decreased, as construction has fallen sharply. The average import of zinc in China dropped 55% from a year earlier. On the other hand, Chinese companies have stockpiled a large amount of nickel and analysts recognize that expectations were too high, and other base metals have been misled by this distortion of demand.
According to CEO of Phillip Asset Management Company Limitedm Mr. Vattana Vongseenin, confidence in the increase of interest rates in the US would lead to even greater strengthening of USD and refusal of positions in Commodities, and refusal of any assets developing economies.

In this connection it is also shifting shares in raw material producers also seen a steady downtrend.  Barrick Gold Corp.  as an example on NYSE: