Commodity Momentum: Agriculture Turns - Now Comes The Hard Work

Published 03/06/2013, 06:32 AM
Updated 03/19/2019, 04:00 AM

The momentum monitor continues to turn green across the agriculture sector, with corn and and live cattle the latest entrants yesterday. Both wheat contracts in Paris and Chicago have not yet joined, as the prospect for a large global crop this year is keeping a lid on any upside attempts.

With cyclical commodities such as energy and metals continuing to show negative momentum, the question remains whether these positive developments in agriculture will be able to take hold. Some of them are already showing signs of fatigue, especially Arabica coffee, which ran into heavy selling yesterday. Sugar has not made much progress yet either, with heavy resistance around 18.50.

Natural gas momentum remains positive ahead of tomorrow's weekly inventory data, while crude oil data today is expected to show another rise in inventories which should limit any renewed upside attempts.
Momentum Indicator

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