Commodity Bust? DBC Commodity Index Deflating on the Month.

$DBC Commodity Index Deflating on the Month.

This got worse after Warsh’s hawkish conference yesterday. Commodities are deflating faster now on the month.

This is not unexpected as $DXY has been rising.

The chart shows no end to this until $25.50 (mean reversion) which should coincide with a higher DXY reading into October 2026.

In summary, stay away from commodities until the demand for dollars adjusts following the oil supply shock. I estimate October 2026. Also stay away from Chinese stocks until then. $HSI

Orange juice, anyone? Price cut down by 60% from the recent peak.