From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
Pockets of strength are once again emerging within the Commodity space.
We pointed out that both the CRB Index and the ASC EW33 Commodity Index were breaking above key resistance levels, pointing to a burgeoning upside move last week.
That upside move has now materialized!
We saw Industrial Metals -- including Copper, Steel, and Aluminum -- continue to follow-through as they grind higher.
But this week’s biggest moves came from the Agricultural Commodities.
Let’s take a look at the recent strength in Ags using our custom ASC Equally-weighted Agriculture Index.
The next leg higher has started for the Ag sector as the index sliced through a six-week consolidation. We’re also seeing similar consolidations and upside resolutions in Corn and Soybeans.
Meanwhile, Grain markets and Lumber continue to lead the rally. Lumber once again pushed to new all-time highs last week, while Corn and Soybean Oil trading halted on limit-up moves Thursday.
The continued strength coming out of the Commodities bodes well for risk assets in general and supports the global growth thesis we see unfolding.
Thanks for reading. Let us know what you think, and be sure to check out this week’s Commodity Report!
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