Opening Statement from the October 2021 CCPM Forecaster

Opening Statement from the October 2021 CCPM Forecaster

Originally published on October 3, 2021 

Overview

Commodities went through somewhat of a rollercoaster ride in September but managed to trend a bit higher. The most recent rally in commodities coincided with the strong rally in Treasury yields.

Inflation data continues to climb around the world. This was recently reflected in rising bond yields as investors anticipate interest rate hikes. In particular the US Treasury 10-year yield soared over the past week. This boosted the USD versus most other currencies. Meanwhile, gold and silver pricing remain weak.

The big news came from the continued rally in crude oil sparked by massive production shutdowns due to Hurricane Ida. Meanwhile, natural gas continued to soar even more, and has soared by approximately 50% over the past six weeks.

Cotton also made a major move to the upside, the likes of which have not been seen in many years...