Prices of all commodities (including the price of the commodity money) move in the same direction and have the same cyclical turning points and are driven by changes in the growth of the economy.
There is some hype right now about agricultural commodities. Be careful. If the economy keeps weakening and oil, gold, metals, and short-term interest rates decline, agricultural prices will follow the general trend of other commodities. The weather and the Fed have little or nothing to do with their long-term (one-two years) price trend.
For more details, see my presentations posted on www.peterdag.com.
George Dagnino, PhD
aka Peter Dag
www.peterdag.com
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