Stronger U.S. Dollar Hammers Dollar-Denominated Commodities

Most of the major commodities plunged today, as stronger-than-expected manufacturing and retail news in the U.S. pushed the U.S. dollar higher.

It didn't matter if it was energy, agriculture or metals, they were all hit by the strength of the U.S. dollar today.

"The ever-weakening dollar had prompted many a fund to pile money into the sector since September last year, pushing values of some commodities well beyond fundamentals," said Jon Nadler, senior analyst at Kitco Bullion Dealers. "But now, as the dollar is staging somewhat of a comeback, even if a temporary one, the niche is being drained of money quite fast."

This looks like it'll be the way of life for investors over the next year or two, as the continual ups and down of the U.S. dollar, as well as unknown short-term condition of the U.S economy, continues to cause huge fluctuations in the market.

More commodity news around the Web

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Gold Falls Below $880 for First Time in 2 Months

The correction in the gold market continues, as the ongoing rise of the U.S. dollar and migration toward equities has pummeled the precious metal.

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Silver Producers' Shares Plunge as U.S. Dollar Strengthens

The U.S. dollar continues to wreak havoc in the overall commodities market, as prices plunge in response to the greenback's recent strength.

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U.S. Dollar Gains Triggering Commodity Selling and Losses

The U.S. dollar gained some strength today, as manufacturing data from the United States, as well as retail sales in the U.S. increasing last week helped prop it up.

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Congress Shifts Attention to Oil Executives, Gas Prices

In what I believe is an attempt to simply assign blame and get the attention of the public away from their dissatisfaction with Congress and their poor performance, Representatives made a big show of "grilling" oil company executives about the profits the companies have made.

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Wheat Prices Drop as Dollar Strengthens

Wheat and other commodities continue to fall on the assumption the strengthening U.S. dollar and equities market will continue to rise.

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Nebraska Corn Growers Planting 6 Percent Less Acres Than Last Year

Citing a report from the U.S. Department of Agriculture, Nebraska Farmer reported that farmers in the state would be planting about 6 percent less acres in corn this year than in 2007. Last year there were 9.4 million acres planted, against the 8.8 million projected for 2008.

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Ethanol Plant Planned for Albany with $350 Million Price Tag

Plans for a new ethanol plant is in the works for Port of Albany, which will cost as much as $350 million.

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