The dollar has been trying to move higher the last couple days, which normally would signal weakness for commodities. Gold has shaken off the recent strength in the dollar and just keeps chugging higher. Some might say gold has moved too far, but I believe it has the potential to move much higher. We could see a short-term pullback, but I would view that as a buying opportunity.
Corn, wheat and soybeans have been pushing higher. The grain commodities had been neglected since early summer as the crops were expecting to be very large this year. Indeed they will be, but the long-term picture is supportive. The next few months are usually a slow time of the year for corn and soybeans so the upside may be limited unless the inflation trade accelerates.
Crude oil has been stuck in a range for more than a month and you would expect it is just a matter of time before this market decides to break higher or lower. The fundamentals suggest lower prices unless the dollar rolls over again.
The soft markets like cocoa, sugar, orange juice and coffee have been holding steady, but not making new highs. The funds like to push these markets to extremes and this could be the calm before another storm. Cotton futures have been pushing to new yearly highs, which is nice to say from a market that has been beaten up the last few years.