This morning two of the leading commodities are starting the morning higher. Copper is making a new high for the year this morning as the March 2011 contract hits $4.63 a pound. The popular iPath Dow Jones-UBS Copper Subindex Total Return ETN (NYSE:JJC) is starting the morning higher by 0.39 cents to $61.43 a share. The JJC will some minor intra-day resistance around the $61.50 level. The next important intra-day resistance level for JJC will be around the $61.95 level. In any case copper remains strong and many investors and traders will look at copper as a leading stock market indicator.
March cotton is trading higher this morning by $4.75 to $172.59. The iPath Dow Jones-UBS Cotton Subindex Total Return ETN (NYSE:BAL) is surging higher by $3.63 to $87.68 a share. The BAL is still trading just below it’s 52 week high which was $91.05 made on February 3, 2011. The BAL will have some intra-day resistance around the $88.00 and $89.00 levels.
The moves higher in the commodity sector this morning are taking place despite a stronger U.S. Dollar Index. Usually when the U.S. Dollar Index rallies or even trades higher it will deflate most commodity prices, however, that has not occurred.