Outside markets

Several factors impact on international commodity markets, including energy prices, the cost of fertilizer, and the dollar exchange rate. High energy prices, in particular, have been identified as one of the main causes of the agricultural price spike of 2008/09. The cost of fertilizer affects the agricultural production process and thus the price of commodities. And the dollar exchange rate defines a country's terms of trade.

About AMIS indicators

AMIS promotes a better understanding of developments in global food markets. A central task in this regard is to monitor market and policy drivers that impact on global food prices and their volatility.

Outside markets

Dollar indices

Internationally traded commodities are priced in US dollars. Changes in the dollar exchange rate thus affect a country's terms of trade, so the quantity of imports that can be purchased through the sale of a fixed quantity of exports. Typically, commodity prices are inversely related to the value of the dollar, meaning that prices drop when the dollar strengthens against other major currencies. Conversely, prices generally move up when the value of the dollar weakens.

Chart description

Chart description

The Nominal Broad US Dollar Index is a weighted average of the foreign exchange values of the US dollar against the currencies of a large group of major US trading partners. It is used to measure the value of the US dollar against currencies widely used in international trade, rather than against all currencies.

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