From the Desk of Ian Culley @IanCulley
Stocks aren’t the only risk assets falling this week.
Rebar, Corn, and Cotton are posting multi-year lows. Dr.Copper is slipping below four bucks. And our short cattle trades are working.
But as most commodities slide, one area (aside from precious metals) is finding its feet.
Notice the CRB Index is carving out a two-year base while our equal-weight index hits its lowest level since early 2021:
The disparity between the two indexes comes down to their construction.
We weigh 33 commodities equally for our index, so rebar futures carry the same weight as crude oil.
On the other hand, crude comprises almost a quarter of the CRB Index.
These stark contrasts reveal two pertinent themes: broadening weakness among commodities and emerging relative strength from energy.