The commodity run

There is a lot more Fed speak this week and I wonder if any will talk about what is going on with industrial metals and gold/silver in complicating their jobs. The CRB raw industrials index closed on Friday within pennies of its highest level since July 2023. Copper is now up 12% in the past 11 trading days and silver by 20% while gold is at a fresh record high. Even natural gas has rallied by 37% off its May 1st low and is at the highest level since mid January, though still below its levels seen above $3 last summer and fall. 

CRB Raw Industrials Index

Helping to lift natural gas prices has been the continued drop in US rig counts where it stood at 103 as of last week, one rig from matching the lowest since early December. The US crude oil rig count by the way is within one rig of the least amount since last January 2022. 

Bottom line, the commodity bull market I believe is alive and well and has more upside and makes the Fed's job that much more difficult for those on the committee who want to find reason to cut interest rates this year. Ag, particularly corn and soybeans, has lagged, though wheat prices are nearing a one yr high, and we like and own some fertilizer stocks as mentioned here before.