I think agricultural commodities are due for the next push up due to inflation coming down year over year in China. I believe the commodities have been in a bottoming process from October 2011 to the present. China's persistently high inflation has been the cause for tight money. However, growth figures are coming off at rapid clip over in China. Pork prices (the staple meat of China) are declining rapidly. The price spike in pork topped in October 2011. Year over year figures for food inflation will continue to moderate as the year progresses. However, I don't see a major loosening of monetary policy. It will just be gradual. I believe commodities will go up 3 steps and take 2 steps down. I see a lot of doom and gloomers coming out saying the commodity superbear is coming. China's forex reserve is still pretty hefty. It's at 3.3 trillion. They are starting to diversify into "other" assets. I wouldn't be surprised if they were heavy buyers in this recent decline in hard assets.China looking to diversify reserves
I am positioned with silver, oil, and Australian dollars. I've felt some pain the past few days, but I feel this decline is "transitory" as Bernanke calls it.