What do you mean? It's a financial instrument to make money on by buying low and selling for a higher price than what you bought it for. Just like metal and agricultural commodities. I didn't make the decision to classify it as a commodity instead of a security. That was the CFTC and SEC.
According to the BIS pdf, US is becoming a net exporter so the commodity/USD relationship has changed. • Commodity prices and the US dollar have moved in tandem recently, in contrast to their usual statistical pattern of moving in opposite directions. • The causes of the change in the relationship are partly temporary, such as the unusual combination of recent shocks, and partly structural, such as the United States’ emergence as a net energy exporter. • The change in the nexus compounds the stagflationary effects of higher commodity prices for commodity importers, while its implications for commodity exporters are more ambiguous. • A lasting change in the nexus could create more difficult challenges for macro-financial stability frameworks, particularly in commodity-importing economies.
Your analysis is not complete. Wheat price is dependent on - supply and demand strong demand, higher wheat price - weather. bad weather, higher wheat price - US Dollar USD down, then USD-based things might go up eg EUR, GBP copper, crude oil, Gold, wheat ... might go up - etc etc etc
I am glad I didn't waste time reading the article. It's not very through and it talks about oil and the petrodollar and the reason it gives is just very ambiguous....'structural changes'. Yeah ok.
"The U.S. Dollar Index (USDX) is a relative measure of the U.S. dollars (USD) strength against a basket of six influential currencies, including the Euro, Pound, Yen, Canadian Dollar, Swedish Korner, and Swiss Franc." "Wheat futures prices are quoted in dollars and cents per bushel and are traded in lot sizes of 5000 bushels (136 metric tons). Euronext Milling Wheat futures are traded in units of 50 tonnes and contract prices are quoted in dollars and cents per bushel." You are not comparing a pair, there isn't a correlation between them as they are measured in different units.
The relationship between commodity prices and the US dollar is complex and can vary depending on various factors. While there can be instances of an inverse relationship between commodity prices and the US dollar, it is not always the case.