The Continuous Commodity Index was 7.95 points higher today, closing at 524.65 – another new, all-time high for commodity prices. The bull market in commodities continued today with sharp gains in the grains, energies, softs and platinum. Global recession fears are beginning to abate, which certainly benefits commodity prices moving higher.
Soybeans traded 38 cents higher today on expectations that China’s rapeseed crops were damaged from the recent winter storms. This scenario would increase China’s demand for soybean oil as a substitute commodity. The volatile wheat market shot higher today on increased export demand after its recent plunge.
Crude oil closed $2.14 higher at $95.55 today on a strong GDP number from Japan. Japan and the US are the two largest users of crude oil. The logic is that Japan and the US appear to be in better economic shape after the latest economic reports, which will indicates a better demand picture for oil. The softs markets continue to attract buying as coffee, cocoa, cotton and sugar all closed higher.
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