The commodity complex is enjoying a nice run against the weak USD. Taking a look at the daily chart of the Commodity index on page 3 you can see this spike today and looking at the weekly chart below that we may have some more upside to test the highs set in January. Specs seem to be leading the charge into fresh upscale trade selling. Looking at the daily chart after yesterdays first red day in 5 sessions we seem to be running into some heavy resistance above the 77.00 level.
Page 2 shows the export sales remaining on pace to get close to the USDA estimate by next week. 300k in shipments is very healthy and sales were also good from last week but will certainly take a hit after this week’s rally. The invert stayed in the160 range today after coming in considerably yesterday. Expect to see more upside momentum as the specs add to longs and follow the technical buy signals in the short term.