Falling U.S. Dollar Boosts Commodities

[errolanderson]

The U.S. dollar (USD) continues to weaken against most global currencies due to a weakening U.S. economy and sagging corporate profits. U.S. 1st quarter GDP was estimated at 0.5%. Even France is now reporting higher GDP.

Fallout in the USD is significant as the dollar impacts all global markets. supporting gains in crude oil, Yen, Euro, gold, silver, wheat, soybeans, corn, the Cdn dollar, etc.

The June Cdn dollar tested 80 cents U.S. this morning. Should crude oil head toward $50 due to U.S. dollar fallout, the Cdn dollar toward 85 cents?

Segments of the U.S. economy have already entered a recession (IMO).

[cottonpicken]

I think its the chinese piling into commodities

[ajl]

Normal seasonal trend. Oil prices usually reach their high this time of the year. GDP estimates are just a measure as too how well a country is manufacturing inflation. Real GDP growth is weak in the US as it is in the global economy. It is just that other countries like Canada are more successful at manufacturing inflation since we do not use the reserve currency and as such it appears that we have more growth. I think the $USD will likely strengthen into the summer.

[cottonpicken]

Look at the Chinese commodity index chart

[vvalk]

if my memory serves me right someone was saying how bearish this whole market was and should be selling everything.

[errolanderson]

vvalk . . . hopefully your unpriced farm storage decision turned out well for you.

[malleefarmer]

See this morning funds are net long beans or was it corn, should we read anything into it errol or just like betting on red or black

[errolanderson]

mallee . . . soybeans and meal continue to rocket higher on heavier estimated Argentina soy losses estimated. Some analysts now project a 15% loss due to excessive rainfall.

But U.S. dollar index has also broken its key support of 93.0 which suggests a further leg lower. This continues to act as a support to commodity prices globally. U.S. is now on-the-cusp of a recession (IMO).