Despite being on the verge of the best first six months of a year in the past 35 years, there are some concerns we may see a reversal in commodities over the next six months. This would come as a result of higher oil, copper and other raw materials prices that could put pressure on consumer spending and lead to a growth in supply.

The negative effects have already started to become visible as gasoline demand has slipped in the U.S. due to high costs, while gold purchases in India saw a plunge of 50% year-over-year. "I've probably been positive for seven years and this is the first time I think there could be really a dramatic secular reversal, that it's not just a pullback" Michael Aronstein, president of Marketfield Asset Management in New York, stated.

The impact will not pass unobserved for airline companies, who will face a decline in the number of travelers over the Fourth of July holiday, following soaring jet-fuel expenses. Copper and gold demand are also facing weak levels after the price for copper reached $4.2605 a pound May 5, the highest ever, while the price for gold reached a record $1,033.90 an ounce March 17, and is expected to average $850 this year and $750 next year.









Another reason for a possible decline in commodities could be a possible rally in the U.S. dollar rally. Analysts from Bloomberg have suggested that the dollar is expected to end a two- year slide and advance in the second half.

However, it looks like for corn producers there might be some good times. U.S. farmers seeded more acres with corn compared with soybean as soaring oil prices led to record corn prices. "Agricultural prices have much higher to go over the next decade," said Jim Rogers, who back in April 2006 forecast oil would reach $100 and gold $1,000.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.