Commodities have outperformed bonds, currencies and equities this year on speculation over supply disruptions and production cuts that slowly diminished multi-year surpluses, which contributed to the largest price collapse in a generation. Meanwhile, we are also seeing demand improving.
Related: Oil ETFs Bounce After Goldman Points to Supply Deficit
“The moving average convergence divergence (MACD) is currently on a buy signal, and though relative strength has been impressive, we see this ready for some sideways action here,” adds TheStreet on DBA. “That is fine, and turnover has been lower coming off the pennant. After a brief stall and holding the recent lows, we should see DBA start moving higher again, perhaps toward the $30 level later on this year.”
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PowerShares DB Agriculture Fund
