Tuesday's FOMC statement did little to stall the bullish momentum the Commodities space has exhibited during the month of March.
In addition, the continued shift in the shape of the futures curve supports improving fundamentals. The short dated contracts are rising faster than the long dated contracts. Eliminating the steep contango that has persisted in the Commodities space for many years. In fact, backwardation, when the short dated contracts are priced at a premium to longer dated contracts, may become the buzz word.
Chinese Oil Demand is now north of 1 million barrels per day (mbd) higher than one year ago.
US total energy demand is averaging 19.5 mbd, well above the January 2010 consensus forecast of 19.1.
Copper imports to China are up double digits month on month this year, consensus for Q1 was for flat heading into 2010.
The combination of overtly generous global monetary policy, China's incredibly resurgent demand, as well as inadequate non-OECD supplies, supports further upside and investors maintaining an overweight commodities exposure.