A lot of eyes today are on the CRB Index, which tracks the major world commodities. If it falls through 200, then a lot of people are going to be scared about the overall commodity outlook.
If it bounces off of 200 and moves higher, then people will feel a little bit better about the outlook for commodities. Ag Commodities play only a small role in the CRB (Commodity Research Bureau) index, but often overall commodity market moves influence the ags’ performance.
Ag commodities have been settling lower since the rally that began in early December and ended in January. But it hasn’t been a slump and could just be a correction before another leg up, which many analysts expect. But as in the fall, “outside markets” can have a major impact on the ags and a continuation of the pummeling of the equity markets and a fall of the CRB below 200 could drain the life out of those hopes.
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