Many financial markets took negatively disappointing US economic data, and a clutch of poorly received corporate results, from the likes of Caterpillar and Microsoft. But for commodities, the poor headlines, including a surprise decline, of 3.4%, in key US durable goods orders last month, came with a silver lining – the dollar tumbled. The greenback was 0.9% lower against a basket of currencies – sure enough, still near an 11-year high, but making dollar-denominated assets, such as many raw materials, that much more affordable nonetheless as exports. The CRB commodities index added 0.9%. ‘Quiet and heavy’ In fact, there weren’t many agricultural commodities which could keep up with that, with sellers retaining the upper hand in most contracts. “The grain and oilseed markets remain rather quiet and heavy,” said Darrell Holaday at Country Futures, with the quiet bit, at least, seen exacerbated by eastern US storms keeping investors away from the office. Still, coffee caught the tailwind of the falling dollar, with arabica beans soaring 3.9% to 168.20 cents a pound in New York for March delivery, stopping just short of a close back above its 10-day moving average. In fact, Brazil‘s real, a major factor in coffee markets thanks … continue reading
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Source: CTRM Center