The CRB index, a broad commodities index, touched critical support today and looks poised to test the 335.00 area again tomorrow.
Grains are the weakest sector in the index, the source of much of the food inflation that has been grabbing global headlines. Oil is down not quite 10% in the last week, a great relief to central bankers world wide.
I get the sense that we might be at the cusp of one of those periodic blood-lettings in the commodities markets that reminds the dentists and the lawyers who piled into ETFs late that these are risky markets, not one-way bets.
That bodes ill for AUD and CAD near-term and should be broadly supportive, if it comes to pass. The Fed would not be quite so far behind the inflation curve if commodities unwind some of their Bubblicious gains.
