Commodities hit by hurricane damage

While oil prices have been impacted significantly by the damage caused by Hurricane Katrina, oil is far from the only commodity that has been affected by the storm.

Damage to coffee inventories held in New Orleans have sent coffee prices 11 percent higher in a week.

The grain markets in the US could see losses, depending on the amount of damage to the port at New Orleans.

Since over half the grain in the US ships down the Mississippi river and through New Orleans, foreign buyers might have to purchase grain in other markets if shipments cannot be made.

Timber prices have risen over 17 percent over the week on reports that timber inventories in the hurricane area were lost and several sawmills destroyed by the storm.

But oil and gasoline prices seem to be the most worrisome to most investors and consumers, even though they have eased somewhat as European nations have offered to tap their reserves to ease the supply crunch in the US.

Still, it will take 10 days for European gasoline to reach the US after a decision to send it is made.

Even with the slight easing in prices, Deutsche Bank has said that gasoline costs, up 20 percent in a week, now take approximately five percent of the average American’s disposal income. Crude oil, gasoline, and heating oil prices did fall some on Friday.