Notice that the US Dollar Index and the CRBC (commodities) are on the verge of enter "accelerating convergence" after spending the past two years at varying degrees of divergence.
Which means that until recently, the strong dollar negatively impacted commodities.
However, since Jan. 2016 a significant and persistent stair-step decline in the Dollar Index has removed stiff headwinds from the Commodity Index, which has appreciated by 20%.
Given the magnitude of the 14-month top formation developing in USD, the CRB advance likely has a considerable period of upside directly ahead.
