The trend remains consumers’ friend in commodities

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The stock market can’t seem put together a streak in one direction or the other lately. But the price trend in a key commodity index remains in favor of anyone who drives or eats.

The Reuters/Jefferies CRB index of 19 major commodities lost 0.7% on Wednesday, the ninth consecutive decline. That left it down 24% from its record high reached July 2.

Near-term crude oil futures in New York slid 68 cents to settle at $102.58 a barrel -- the lowest since April 1. Oil hasn’t closed below $100 a barrel since March 4, but we’re getting close.

Crude prices dropped despite the government’s latest inventory report, which showed a steep decline in U.S. supplies last week. Traders also seemed nonplused by OPEC’s push to trim production.

Analysts say commodities are facing broad-based selling by many of the same speculators who piled in earlier this year, when raw materials were red-hot.

More signs of slowing growth in the global economy are ‘contributing to general commodity liquidation, especially from leveraged hedge funds,’’ Greg Grow, director of agribusiness for Archer Financial Services in Chicago, told Bloomberg News.

What’s more, the dollar continues to push higher, which undercuts one argument for commodity investing: the need to offset the inflationary effects of a weak dollar.

The euro on Wednesday dropped to $1.403, down from $1.417 on Tuesday and the lowest since last October. Just seven weeks ago the euro was at $1.59.

Gold took another beating as the dollar rallied. Near-term gold futures plunged $29.20 to $757.90 an ounce, also the lowest closing price since last October. Gold peaked at $1,004 in March.

Wheat futures ended at $7.05 a bushel in Chicago, a 52-week low and down from a record $12.82 in March.

One more indication of the bearish tone in commodities markets: The so-called Baltic Dry index, which tracks the cost to ship raw materials by sea, fell today for a 16th consecutive session, to the lowest level since the spring of 2007.

In other words, shippers apparently are rushing to cut prices because global demand is waning.