Commodities sink to 10-month low on lingering concerns over European debt

Bleak economic indicators and a series of weak data reports from governments across the globe are placing downward pressure on commodities prices. On Tuesday, commodities sunk to a 10-month low, fueled by moribund global economy and Europe's ongoing sovereign-debt issues.

Analysts' and investors' confidence further eroded on Tuesday, as concerns mounted over future demand for energy, metals and crops. Some experts contend worldwide consumption levels are set to fall precipitously as Europe's debt crisis extends to nations outside the European Union.

Goldman Sachs reduced its global growth forecasts, with its analysts forecasting recessions will strike Germany and France, the two biggest economies in the EU and the historic drivers of economic activity. Bloomberg reports Greece's soaring budget deficit and debt load may derail the European economy, forcing bondholders to take a loss on the country's debt.

"We are seeing continuing pressure across the commodities complex from these concerns about the global-growth prospects," CMC Markets Asia Pacific chief market strategist Michael McCarthy affirmed. "The markets are universally bearish."

On the Chicago Board of Trade on Tuesday, future prices for corn, soybeans and wheat also declined, according to official data.