Commodities Back Off Across the Board

Commodities prices have backed off across the board today, with crude oil leading the way. Grains, softs, and gold have followed suit. The U.S. Dollar is stronger, also. There has been no follow-through buying strength with additional buying of commodities. This is suggestive of a consolidation that could last a very long time.

However, it is also common for commodity buyers to liquidate their positions on Fridays to avoid the potential risk of events over the weekend. These buyers will then reestablish their positions Sunday evening or Monday morning.

The grains, although lower overnight and selling off at market open, have showed surprising resiliency and some renewed buying vigor today.