Commodities fell to a 12-year low on concern that the global surplus in crude oil will continue, while slowing economic growth in China and Europe means less demand for raw materials.
The Bloomberg Commodity Index (BCOM) of 22 energy, agriculture and metal prices dropped as much as 1.6 percent to 101.95, the lowest since November 2002. In 2014, the gauge declined 17 percent, the most since the global financial crisis in 2008. The measure rose to a record in July 2008, more than doubling from the start of 2000.
A rout in energy prices has led the declines for raw materials, with oil dropping to the lowest in more than five years and Goldman Sachs Group Inc. forecasting more declines. Supply gluts are emerging in grains, helping to keep food inflation in check, while a slowdown in global manufacturing hurts demand for metals.
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