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Gartman: Food Commodities Could Keep Easing

As Chipotle's lackluster comps put pressure on the company's bottom line, food costs could ease in the near future, commodities trader Dennis Gartman said Thursday on CNBC.

"The only thing you can say in their benefit is that at least some of their commodity prices have begun to decline rather dramatically," he said on "Fast Money."

Gartman, who is also editor of The Gartman Letter, said that food prices could continue their downward trajectory across the board.

"Corn prices are down. Soybean prices are down. Hog prices are down, and you're actually beginning to see some changing going on in livestock," he said.

"Feeder cattle prices are actually going up, which tells you cattle producers are beginning to put cattle back on feed. The problems that most of these food companies have had with rising prices are about to go out the door."

Tim Seymour of EmergingMoney.com said that high expectations might have hurt Chipotle.

"When you trade at this kind of multiple and you miss, you drop a doughnut," he said.

Joe Terranova of Virtus Investment Partners had unflattering words for Chipotle.

"This is a stock that has lost its momentum," he said. "I think, clearly, money managers have gone into Yum! Brands.

Yum, he added, pays a dividend and is capitalizing on the recovery.

"I think that's the right trade here," he said. "I don't touch CMG."

Trader disclosure: On Oct. 18, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Jon Najarian is long GS; Jon Najarian is long JPM; Jon Najarian is long FB; Jon Najarian is long ALGN; Jon Najarian is long EBAY; Jon Najarian is long SNDK; Joe Terranova is long VRTS; Joe Terranova is long WFM; Joe Terranova is long SBUX; Joe Terranova is long NFLX; Joe Terranova is long SWN; Joe Terranova is long TRV; Joe Terranova is long VZ; Joe Terranova is long XOM; Joe Terranova is long CVX; Joe Terranova is long COP; Joe Terranova is long SNDK; Joe Terranova is long NXPI; Joe Terranova is long EMC; Joe Terranova is short SU; Joe Terranova is short CSTR; Joe Terranova is short GS; Joe Terranova is short CHKP; Joe Terranova is short GLW; Dennis Gartman is long CS; Dennis Gartman is long AS; Dennis Gartman is long MAT-GAS; Dennis Gartman is long S&P; Dennis Gartman is long CMG; Dennis Gartman is short the euro; Dennis Gartman is short yen; Dennis Gartman is short 30 year bond; Dennis Gartman is short crude WTI; Dennis Gartman is short 10 year note.

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