No Bursting Commodity Bubble to Be Found!

Commodities are higher almost universally in the past few days. Gold has moved higher off its lows, and crude oil prices have moved steadily higher for a week, despite a significant increase last week in crude oil inventories. Grains are also higher on global shortages, and agricultural softs have formed a solid broad-based bottom and are beginning to move higher again. Sugar, cocoa, coffee and cotton, for example, have found solid support at their 200-day moving averages, and are showing signs of strong, renewed buying volume. The commodity bull is alive and well again, and agricultural commodities may lead the way, with metals and energy commodities moving robustly higher as well. The odd card in the deck, however, is that the US Dollar is modestly higher as well today.