Passing the Baton

We’ve been pounding the table on this idea for months now.

This isn’t just a commodity bull market… It’s a broadening commodity bull market.

When this cycle first got underway back in March 2024, as Gold kicked off a brand-new secular uptrend, leadership was incredibly narrow. 

The metals complex dominated everything. 

Precious metals, base metals, industrials… if it came out of the ground, it was working.

But that’s not how sustainable bull markets behave.

Instead, they expand, rotate, and pull more and more participants into the party.

And coming into 2026, that was our bet: leadership would rotate away from metals and into other areas of the commodity complex, namely energy and agriculture.

So far? That’s exactly what’s happening.

The cleanest way to see it is through one of our favorite intermarket ratios: agriculture versus base metals.

The agriculture $DBA versus base metals $DBB ratio has completed a textbook scoop-and-score reversal pattern, reclaiming a key shelf of former lows and pushing to fresh highs for the year. 

This is what a decisive shift in leadership looks like.

Sure, in the very short term, this move might be a bit extended. 

But zoom out, and it looks like the early innings of a brand new primary uptrend.

In other words, this isn’t the end of the move… It’s the beginning.

And if agriculture is going to continue outperforming base metals, then we want to be long the strongest trends within that group.

Right now, we’ve got two that stand out.

First up is Crude Palm Oil futures.

This is about as clean as it gets...

After carving out a massive multi-year base, the price is now breaking out to new multi-year highs. So long as this breakout holds, the path of least resistance is decisively higher for the foreseeable future.

We want to own Crude Palm Oil futures above 1,120, with a target of 1,450 over the next 3-6 months. 

Next up are Soybean Meal futures, which tell a very similar story… just on a shorter timeframe.

Soybean Meal futures have carved out a sweet base-on-base structure over the past few years. Now the price is flirting with a breakout to new 52-week highs. 

If the buyers make a decisive upside resolution, we want to get involved with this trend reversal. 

We want to buy Soybean Meal futures on strength above 334, with a target of 391 over the coming 2-4 months.

So while metals may have led this cycle early on, the baton is clearly being passed.

And if this commodity supercycle is going to reach its full potential, this is exactly what it should look like.

It’s all about rotation.

What are you seeing in commodities? Let us know what you think. We love hearing from you!

Commitment of Traders Highlights

• Grains - Commercials added 1,405 contracts to their net-short Hard Red Spring Wheat (Minn. Wheat) position. This marked a new multi-year record.
• Grains - Commercials hit a fresh multi-year extreme net-short position in Soybean Oil. Historically, this tends to happen when the agricultural commodity is in a strong primary uptrend.
• Currencies - Commercial hedgers added more than 13,000 contracts to their largest net-short Australian dollar position in years. This bodes well for AUDUSD and Copper bears.

👉 Click here to download the All Star Charts COT Heatmap

Commodities Trades of the Week

This week, we're highlighting our favorite setup in the agricultural stock universe that we track. We're also putting on a new energy trade in a setup we've been stalking for months.

Premium members can see the entry and target levels below. 👇