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Stronger Dollar Leads to Drop in Demand for Commodities

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Aug 17, 2009.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today’s sample of Futures Analysis from FuturesHound.com

    Perceptions that the strong rally in the U.S. Dollar may lead to a drop in demand for commodities pressured both the Grain and Softs complexes on Monday.

    Soybeans, corn and wheat were all sharply lower as traders sold positions on the notion that the stronger Dollar will make U.S. grain markets too expensive for foreign buyers. Speculation that China may cut back on demand was also a driving force behind the break. All of this bearish news regarding demand was on top of last week’s bearish U.S.D.A. report predicting an increase in crop production.

    The soft complex was also down on Monday. Speculators either took profits or renewed shorting activity in Cocoa, Coffee, Cotton and Sugar in anticipation in a drop in demand because of the stronger Dollar and a slow down in China’s economy.

    Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

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