The CRB index has once again breached a ceiling, signaling a strong rally.
Benchmark Your Current Metal Price by Grade, Shape and Alloy: See How it Stacks Up
The CRB index now stands just 1.5 points below its 2017 peak, which occurred at the beginning of the year.
Oil prices have led the latest commodities rally.
Energy accounts for up to 39% of the entire commodities basket, and oil serves as one of the largest energy components of the index.
Actual output cuts from Saudi Arabia, as well as political turmoil, have led the oil price surge. Oil prices have traded sideways for a long time, and at some point in time would have changed direction.
Industrial Metals
Contrary to commodities, industrial metals have fallen slightly this month.
The base metals bull rally has slowed down, creating price pullbacks. Price pullbacks often occur in bullish markets, especially those metals with high volatility. Furthermore, price pullbacks create buying opportunities.
In rising markets, buying organizations will want to follow how commodities, industrial metals and each particular metal behaves before committing to purchases.
Free Download: The November 2017 MMI Report
To learn more about how to reduce risks when committing to long-term purchases and when to just buy as needed, check out our free Monthly Outlook trial.