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Commodities Headed For Bull Market As U.S. Drought Withers Crops-Bloomberg

The Standard & Poors GSCI gauge of 24 raw materials has jumped 21% from this years low and is now officially in bull market territory. The rally has mostly been motivated through the terrible drought affecting crops across the United States. This increase in prices could boost inflation and crimp profits for companies dependent upon these commodities and that don't have the pricing power to pass on the price increases to consumers. With the unemployment rate still very high and the economy sluggish these price increases are not likely to be well received by consumers.