Overnight on Wednesday, we received some reassurance that the recent slowdown in the U.S. economy has not leaked into foreign economies. The biggest news came from Japan, where the economy grew at 3.7 percent in the fourth quarter, more than twice as fast as economists had expected.

Because Japan's economy is largely export-based, this seemed to bode well for global growth and demand for Japanese goods. The other piece of overseas data came from Australia, where the unemployment rate fell to 4.1 percent, its lowest level since 1974. Then, on Thursday morning, Federal Reserve Chairman Ben Bernanke stated that the Fed was standing ready to lower interest rates further in order to aid U.S. economic growth.

Though the Fed has a dual mandate to encourage growth and fight inflation at the same time, it has become readily apparent in recent weeks that the current Fed chairman is focusing much more on growth. The sharp cuts already made in interest rates, coupled with future rate cuts, may be enough to help the economy avoid a recession, or at least make the recession mild. Because of this, many traders are now looking to the second half of the year and wondering what such low rates might do to the value of the U.S. dollar and the level of prices. Strong growth overseas coupled with lower growth and low interest rates in the U.S. is bearish for the dollar.

As the dollar falls, foreigners can by U.S. goods and commodities at what seems like a discount because the value of their native currency is rising.

The idea that the U.S.'s economic woes may not be affecting the rest of the world as much as previously thought pushed commodities higher across-the-board on Thursday and pushed the dollar lower. Grains were sharply higher, with rice, soybeans and wheat all making new record highs.

Cotton, cocoa, crude oil, gasoline and natural gas were sharply higher as well. Platinum blasted over $2030, a new record. The value of the dollar, which seemingly had stabilized the past few weeks after a long slide last year, was falling again as investors seemed to see more upside in buying other currencies that offered better prospects for growth and higher interest rates. Should the dollar continue to fall, it would be bullish for commodities across-the-board.

It is worth noting the specific growth in Minneapolis wheat the past two weeks. Though the most widely traded wheat contracts are traded on the Chicago Board of Trade, the Minneapolis Grain Exchange also trades wheat contracts.

Wheat traded in Chicago is winter wheat, while spring wheat is traded in Minneapolis. Most traders assumed that higher prices last fall would lead to a large increase in winter wheat plantings and that the increase would help to build up extremely low inventories.

When USDA announced in January that winter wheat plantings increased much less than was expected, the rally in Minneapolis wheat began. The wheat report was issued Jan. 11 and Minneapolis wheat was trading at 1062.75 cents per bushel at the time. Today, the price is $1853, a gain of 74.4 percent in just over a month.

The rally has been so strong that the Minneapolis Grain Exchange had to increase the daily trading limit to 60 cents per day from the previous limit of 30 cents. The change in daily limits also added a clause that if wheat closed 60 cents higher on two consecutive days, the limit temporarily would be expanded to 90 cents. Starting on Jan. 30, Minneapolis wheat has now closed up the limit every day, including 90 cents on both Wednesday and Thursday of this week.

There is no telling where the rally will end, but this is really the wheat trades last chance to entice farmers to plant more wheat to be harvested in 2008.

Opinions expressed solely are those of the writer. Walt Breitinger is vice president of commodities at A.G. Edwards and Sons. He can be reached at (219) 738-6460