Corn fell as ethanol production in the US slowed, reducing demand. The report of the Energy Department showed the production in ethanol rose 6.9 percent in the first five month of 2011, compared with the 29.7 percent in the same period of 2010. The US Department of Agriculture predicted the global consumption of corn will fall to 505.1 million metric tons in September from 510.09 million tons in August. Contract for delivery of corn in December dropped 0.8 percent to $7.1875 per bushel on CBoT.
(...)
Read the rest of Demand for Oil & Corn Falls, Prices Follow (12 words)

Corn and soybeans gained today on prediction that dry weather in Argentina and Brazil will diminish output. Forecasts promise that unfavorable weather will persist for about 10 days. March futures for soybean delivery gained $0.24 (1.8 percent) to $13.935 per bushel as of 13:15 on CBoT. March futures for corn delivery advanced $0.1075 (1.8 percent) to $6.1925 per bushel.

Natural gas declined today as specialists predicted that temperatures in the US will be in normal range next week. Previously gas climbed on anticipation of colder-than-normal winter. February delivery for natural gas dropped $0.196 (4.2 percent) to $4.473 per million British thermal units on NYMEX.
(...)
Read the rest of Decline of Crude Oil & Natural Gas, Gains of Corn & Soybeans (12 words)

Rubber also declined on a stronger dollar. Another reason for the decline was the profit-taking after prices surged to the record. June delivery for rubber slid 1.7 percent to 419.1 yen per kilogram ($5,102 per metric ton) on the Tokyo Commodity Exchange.

The commodity sell-off affected gold too, causing the spot price to decline 0.2 percent to $1,378.18 an ounce.
(...)
Read the rest of Stronger Dollar Weakens Oil, Rubber & Gold (12 words)

Refiners usually idle units for repairs and upgrades in October, when demand for gasoline is lower, and before heating-oil use increases. Yet 4.1 percentage point drop in refinery utilization rates last week was the biggest since September 2008. The report was definitely bullish for the oil products.

Another reason for the oil prices increase is global economic recovery. As example of the recovery can be considered the fact that the increase for the cost of living in the U.S. was slower in September.

November delivery for crude oil futures advanced $1.73 (2.3 percent) to $76.91 per barrel by 13:05 on NYMEX. November settlement for Brent crude oil gained $1.04 (1.4 percent) to $74.14 per barrel on ICE Futures Europe exchange.
(...)
Read the rest of Decline in Gasoline Inventories Caused Oil Prices to Rise (12 words)

Copper jumped more than 4 percent to 10-month high. As U.S. and Chinese manufacturing are experiencing recovery speculation are rising on increasing demand for industrial materials. September delivery for copper went up $0.1095 (4.2 percent) to $2.733 per pound as of 11:40 on the New York Mercantile Exchange’s Comex division.

Gold rises to the highest in almost two months as dollar weakens today. Tendency for gold to rise when dollar falls causes gold to gain as dollar weakens and demand for the metal as alternative investment increases. December delivery for gold raised $7 (0.7 percent) to $962.80 per ounce at 12:51 on the New York Mercantile Exchange’s Comex division.
(...)
Read the rest of Increase of Oil, Gasoline, Copper & Gold (12 words)

Gold may go up as a declining dollar rises demand for the metal as an alternative investment. The dollar fell 1.7 percent against the single European currency while gold futures gained 2.4 percent this month. August futures for gold gained $1.60 (0.2 percent) to $950.40/ounce on NYMEX by 8:32.

Crude oil and gasoline rises today as earnings cause contraction to stop. Earnings at Caterpillar Inc. was better than expected potentially making contraction to stop in the world’s biggest fuel-consuming country resulting in rise of crude oil rose and gasoline. Futures reached $65.53, the highest since July 6th. Crude oil for August delivery gained $0.86 (1.3 percent), to $64.84/barrel as of 10:23 on NYMEX.
(...)
Read the rest of Copper Goes Up, Gold Rises, Oil & Gasoline Gain (12 words)

Last year at this time crude oil was around $66.00 barrel. Fridays close was a new record and put oil above $139.00 barrel.

What does this mean for Forex traders….how commodity prices affect currencies.