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"It appears that the impact of the value of the U.S. dollar on the value of corn may be less than implied by daily market commentary. The direct cause and effect relationship is relatively weak. There may be some recent economic relationship between the value of the U.S. dollar and crude oil prices which impacts the value of ethanol and therefore corn. The value of the U.S. dollar and commodity prices may also be correlated to some degree in the current economic environment as expectations about world economies influence both the value of the dollar and decisions about investment in commodities in general. In any case, it is unlikely that the corn market will completely ignore currency values in the price discovery process, even if the relationship is weak."
Darrell Good, U/ILL Ag Economist
http://www.farmdoc.illinois.edu/marketing/weekly/pdf/030810.pdf
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