Weaker dollar supports commodity prices

With a few exceptions, commodity prices have trended higher over the past week. A weaker dollar on the back of the July FOMC minutes showing that Fed officials were divided over the timing of the next rate hike was the main factor behind the rise in prices. Meanwhile, falling stocks and speculation over an output freeze have continued to buoy oil prices this week. However, we think that an agreement is still improbable and in any case would do little to absorb the glut.