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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Tommaso who wrote (264762)10/26/2003 7:33:14 PM
From: Mark Adams  Read Replies (1) of 436258
 
I guess I'm thinking in terms of Iron Ore, Coal, Nickel, Copper, Aluminum and what not. Maybe even Wheat and Soybeans. Is there any commodity not priced in Dollars?

From what I've seen, global producers suffer when the dollar drops, as their revenues decline in local currency terms, while their costs do not.

This suggests there are distributed corporate/sovereign interests which prefer a gradual/smooth adjustment over dislocation. Hedge funds might prefer an abrupt change, as this turmoil might create more mispricing opportunities, if not outright bankruptcies and asset transfers.

Forward sales contracts and hedges might mitigate this some.
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