From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
Earlier this month, we discussed our outlook for a post-harvest rally, highlighting corn and soybean oil contracts.
Here’s what we had to say:
Cotton and coffee continue to rip. Crude oil and the energy space are grinding higher. Live cattle are breaking out. Even precious metals are starting to catch a bid.
Fast forward to today, and Ags have emerged as the clear leaders over the near term. They’ve been ripping higher while the majority of the commodity space retests critical levels of former resistance and continues to consolidate.
The fact that grains, softs, and livestock are marching higher while their peers are under pressure, tells us this is an area we should focus on for long opportunities. It’s where the relative strength is right now.
When we drill into the ag space, cattle futures continue to stand out. Not only are these some of the stronger contracts in the subgroup — they are also resolving higher from significant multi-year bases.
And you already know how we feel about big bases… Let’s talk about ‘em! [Read more…]