Check out the commodity discussion in the IMF statement in a report released over the weekend – “Commodity prices have broken out of their recent trading ranges, after rebounding from their lows earlier in 2009, in part due to U.S. dollar depreciation. Although financial flows have affected price dynamics, there is little evidence to suggest that these have had a sustained price impact. Expectations of improving demand, combined with the effect of the weaker U.S. dollar, have led to the recent resumption of rising commodity prices. A good part of the recovery now appears to be priced into oil and metal prices, and substantial spare capacity and high inventories should provide buffers.”
Bloomberg has more — their take is that the IMF is saying the U.S.dollar is overvalued.
Meanwhile, China is urging the U.S. to control its deficit to stabilize the dollar. Chinese premier Wen Jiabo told a news confernce in Egypt that “We have seen some signs of recovery in the U.S. economy … I hope that as the largest economy in the world and an issuing country of a major reserve currency, the United States will effectively discharge its responsibilities.”
But China has its own problems. Its Corn Crop fell 13% as drought damage gets worse and worse. Production dropped to 144.374 million metric tons (5.684 billion bushels) from 165.9 million tons last year. And last year was a bad year! China corn production is now at a 4-year low.
Also, the New York Times is running the story, “Inside The Global Gold Frenzy.” It’s mostly stuff you already know, but it has a few informational nuggets.
Related Posts
- News You Can Use for Monday: Soaring Crude a… (05/18/08)
- News You Can Use for Monday — Gold, Agricul… (06/02/08)
- News You Can Use for Monday (05/11/08)
- Oil and Gold Charts and Monday News (10/19/08)
- Monday News Roundup — Gold, Agriculture, Oil and More (01/18/10)
{ 0 comments… add one now }