Commodities higher. Trading as the highest level since November 2015

Thomson Reuters CRB index

There is a lot of talk about the rise in commodities. Oil prices are of course higher and trades at $51.20 (+1.65% on the day). The Thomson Reuters CRB index is also trading at the highest level since November 2015.

The index is up about 26% from the lows of the year. That is the good news. The not so good news is it is off a low that goes back to 2002. So let's not get too excited.

Nevertheless, it is a step in the right direction for commodities/inflation.

Is it good inflation? I guess it depends on why the prices are going higher. You would like to see them move higher on strong global demand from a strong global economy (if you are looking for growth pickup at least) vs. going higher from lower supply (i.e. not making money selling at lower prices, so cut supply). China is helping out with the talk of taking out over capacity in steel production. Oil which was on its back with analysts calling for low 20's not too long ago, now love it above $50.

Ah, how the tides and the stories turn. There is room to roam.