Good weather and rapidly improving crop conditions coupled with failing world financial markets contributed to corn being down 6.75 cents, Soybeans down 10, and wheat down 7 today. Crude Oil was down more than $2/barrel today and the Dow was off over 200 pts. At the time of this writing (3:40), crude is down only $.85 while the Dow has bounced back to only down 20 pts! I wanted to shed a little light on how commodities, US dollar, and stock index has performed so far in the month of May.
April 30 Today %Change
US $ Index 81.99 87.25 6.4%
Gold 1168 1191 2.0%
Cattle 94.22 90.11 -4.3%
Hogs 86.32 81.05 -6.2%
Corn 3.75 3.65 -2.7%
Soybeans 9.99 9.30 -6.9%
Wheat 5.03 4.63 -8.0%
Crude Oil 88.36 67.87 -23.2%
S&P 500 1183 1045 -11.7%
As you can see it has been a great month for the US dollar as all of the European financial problems have at least lent some credibility to our currency. Gold has also done well in great times of uncertainty as a safe heave if you will for money. The commodity sector other than Gold has had a rough go of it and further strength of the US Dollar could lead to lower prices down the road with all other fundamentals remaining equal.
Scott Meyer
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