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Dollar Index vs. Corn, FOB 12/16/24

Question about the value of the dollar versus corn:

"Looking back to 2021 when corn prices were way higher, I compared it to the value of the US dollar and it did not really look like that was a major contributor. So, what stars lined up to cause the rapid increase and high price of corn??? Or am I misreading the dollar vs. corn chart?"

 

The facts:


We have all heard a thousand times over the decades that a lower (exchange rate) dollar is bullish for commodities because foreign buyers can buy a larger quantity of a US commodity with the same amount of their currency.


I can remember when it took more than 300 Japanese yen (Dec 1975) to buy one U.S. dollar and years later it took just 85 yen (1985).  In Nov 2011, it only took 77 yen to buy a dollar. Today it takes 153 yen to buy a dollar. 

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