Many Commodity Prices Slip on Stronger Dollar

August 29, 2008  

In general, commodity prices fall whenever the dollar strengthens as investors try to hedge against inflation. At the end of August the dollar is higher against most other major currencies, where are the lower prices?

Coffee

Coffee futures for December delivery fell 2.05 cents to $1.4575 a pound on Friday August 29th. The high of Friday’s session was $1.5020.

Wheat

Wheat futures for a December delivery fell 9.75 cents a bushel to $8.0125 on Friday August 29th. The low of Friday’s session was $7.98.

The Cocoa Exception

Despite a stronger dollar, prices for cocoa futures rose on Friday August 29th. Prices for a December delivery rose $24 to $2,884 per metric ton after hitting a high of $2,954. The price increase is due to an increased global demand for chocolate. Cocoa was one of the few commodities to buck the trend of being sold as a hedge against inflation on a day when the dollar was strong against other major currencies.