Inflation is declining, which in turn is helping to lower the value of the dollar, which in turn lowers the cost of U.S. goods in the export market, explains Randy Martinson of Martinson Ag Risk Management.
Pressure on commodity markets was also due to concerns of the U.S. economy falling into recession. This concern is adding to the fund selling spree as traders take money off the table in both the commodities and in the financial world and head for the sidelines.