But he says he thinks prices for his raw materials could easily shoot right back up, so he is not passing any of his savings on to his customers. “When the economy hit me bad, I actually lost money,” he said. “So with prices going down, I am recouping.”  Businesses big and small are getting a break these days as the European financial crisis and slowing growth in China, India and the United States have pushed down the prices of a wide array of commodities in recent weeks. If the trend continues, businesses and consumers are likely to reap benefits through cheaper prices for goods ranging from cotton shirts to copper wiring and coffee beans. So far, however, businesses seem to be benefiting a lot more than their customers.  Over the last month, global oil prices have declined by about 12 percent, while corn, copper, lead, cocoa and coffee have all dropped by 5 percent or more. Prices of corn, cocoa, oats, cotton, rubber, coffee, aluminum, silver, zinc and nickel are all more than 20 percent lower than a year ago.  Gasoline prices are falling precipitously, too, down nearly 20 cents over the last month alone, to a national average of $3.54 a gallon on Wednesday. That is nearly 45 cents below the high for the year reached in early April. The average household consumes 1,200 gallons of gasoline a year, so every dime shaved off the price of gas translates into a $120 annual savings, according to the Oil Price Information Service.  “The world economy is in risk of a recession and on that possibility, commodity prices weaken,” said Allen L. Sinai, chief global economist for Decision Economics, a consulting firm. “Lower inflation comes with weakening economies.”  Oil is among the commodities that have fallen in price the fastest despite continuing tensions in the Middle East and the tightening sanctions on Iran. OPEC production has been soaring in recent months because of mushrooming crude exports from Iraq, an almost total resumption of exports from Libya since the fall of the Qaddafi dictatorship, and a concerted drive by Saudi Arabia to push up production. At a meeting in Vienna on Thursday, OPEC is expected to decide to keep production steady despite weakening prices.  In the United States, a glut of natural gas has led to a price drop of about 10 percent over the last month and more than 50 percent over the last year. Since much of the nation’s electricity is produced by burning natural gas, that should ease summer air-conditioning expenses for consumers. It will also help manufacturers, especially those who make plastics, fertilizers and other products that use natural gas as a feedstock.  But while consumers are pleased by lower fuel prices, they say they have yet to see much relief in the prices of other products linked to commodities.  “I don’t feel food is going down,” said Connie Shanley, a homemaker shopping at a Whole Foods store this week in West University Place, Tex. “Paper towels, deodorant, soap, cleaning products seem to be going up. The total bill seems to be more.”  Libba Letton, a Whole Foods spokeswoman, conceded that there were limited benefits for consumers in the short term.  “Typically these market fluctuations do not immediately affect Whole Foods Market because we have long-term contracts with our suppliers,” she said.  Other businesses also acknowledge that prices for raw materials go up and down far faster than the prices their customers pay for finished goods. Clothing retail executives have said they need to sell off inventory purchased when textile prices were higher before consumers can take full advantage of falling cotton prices, while car parts retailers say they are still paying high shipping costs that have not fallen along with lower fuel costs.  Paul J. Chakmak, executive vice president and chief operating officer of Boyd Gaming, a national chain of hotels and casinos, said his company was benefiting from lower jet fuel prices since it operates four weekly charter flights to shuttle tourists from Honolulu to Las Vegas. Lower natural gas prices help reduce the cost of cooking at hotel restaurants and of heating the shower water in 11,500 rooms. But he said the energy savings were marginal compared with labor and marketing costs, so customers would not see lower prices.  “It is a little soon,” Mr. Chakmak said, to predict any long-lasting impact.  More than anything else, economists say, the steep drop in prices reflects deepening worries about a global economic slowdown as Greece prepares for elections next weekend that could lead to its withdrawal from the euro currency union, with financial repercussions across Europe and beyond. A sharp drop in European consumer demand, especially in Italy and Spain, has already reduced global trade in many goods.  But economists say that while manufacturers and retailers tend to pass higher costs on to their customers, they do not always pass along their savings when wholesale prices go down.  “Producers or stores tend to keep prices the same, and take a larger profit,” said Michael P. Niemira, chief economist for the International Council of Shopping Centers.  Commodity prices are still generally high, and well above levels nearly four years ago, when the global financial panic reversed a seven-year bull market.  The decline in commodity prices varies widely depending on the raw material. Cotton prices are down nearly 50 percent over the last year, and have actually been recovering a bit in recent weeks. Copper, a metal that is viewed by many economists as a barometer for economic activity, is down by nearly 20 percent for the year. Gold, normally a commodity that soars with economic uncertainty, is higher but only by about 3 percent over the last year.  “Gold has behaved in line with risky assets, and the heightened uncertainty globally has not rallied the same support gold garnered on previous occasions,” according to a recent research note from Barclays commodities.  Some analysts say that commodities have sold off so steeply that they are bound to turn around and resume the bull market that was spurred by growing demand from emerging middle classes in the developing world.  In an investment note this week, Goldman Sachs argued that oil and some other commodities were poised for a rebound. “Although the macroeconomic backdrop still remains uncertain, particularly in Europe,” the bank said, “we believe that the price risks are now shifting more to the upside.”  Some analysts note that China is still growing and importing large amounts of oil, and can be expected to be a steady importer of raw materials.  “The fact that China is moving from an export model to an internal consumption model may be positive for some commodities such as energy and agricultural products,” said Nelson Louie, global head of commodities at Credit Suisse’s asset management division.
Prices for a range of goods, including cotton, copper and gasoline, have fallen in recent weeks, a sign of faltering demand.