1-18 IAT 2013 Commodities

 As 2013 gets under way, commodities could see renewed buying interest. With the economy squeaking past the fiscal cliff, the commodities markets are looking up on the morning of January 2.

At the end of last week, I talked with Darin Newsom, senior analyst for DTN, is seeing a new sense of hope in the commodities markets, with the continuous commodity index potentially on track to establish a key bullish reversal on the weekly chart. “ The big picture has changed a little bit since when I posted that on Wednesday following the passing of the legislation that help us get past the fiscal cliff. This came from a blog that I had posted on DTN. Commodities could still see some renewed buying interest in 2013. It just might not occur as quickly as what we thought. The main idea of it I suppose is it is showing some renewed investor confidence in the commodities sector, something that was sorely over the latter parts of 2012, something that certainly had many of the sectors from metal to energies to grains all on the defensive. Now as we have seen here early this week, grains are not looking any stronger, in fact they have actually extended their downtrend over the last 3 sessions. A lot of that has to do with the investment side of the market moving money out of grains. Initially it looked like they were moving into energies and it looks like they still could be longer-term. Metals could start drawing attention as well given the type of sell off we saw in gold here at the and of the week. I still think there are some signs out there that commodities could see a better 2013 for a while, but by the time we get to the end of the year, I think sectors such as grain could be running into trouble again.”