Email of the day (1)
On a soft dollar affecting grain prices
"Do you think $ dropping will aid grain prices? Saw this story on the Agrimoney.com and thought it would interest you."
David Fuller's view Thanks for the report which I have posted in the Subscriber's Area.
The short answer to your question is, yes, it could because a persistently weak currency is a tailwind for prices of goods and services. It also increases speculative interest but the dollar factor is not nearly as important as supply and demand factors for commodities.
By coincidence, I mentioned Bernanke's latest statement and the soft dollar in 'My personal portfolio' below.
The report from agrimoney.com is very much in line with earlier comments from our grain specialist in the Collective, which I mentioned in an Audio last week. He has been consistently ahead of commodity journalists in reporting crop developments.