Tag Archives: agriculture
Diversifying Commodities Rise 16% in Q3 2023 as Equities Drop
Commodities, as represented by the S&P GSCI, rose over 4% in September and 16% in Q3 2023. This highlighted the potential diversification qualities of this asset class, as equities and fixed income both fell during the month. Commodities’ low correlations to other asset classes can provide a cushion when other higher-allocated asset classes drop during…
- Categories Commodities
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S&P GSCI Mid-Year Recap and Lithium Added to S&P GSCI Electric Vehicle Metals Index
Surging futures activity on CME Group’s lithium contract allowed for entry into the S&P GSCI Electric Vehicle (EV) Metals Index. This milestone reflects the changing nature of indices to maintain a representative share of the global commodities market. The largest and most recognizable benchmark for commodities, the S&P GSCI, reviews contract eligibility for existing and…
- Categories Commodities, Thematics
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- Commodities, Thematics
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The S&P GSCI Cooled in April as Inflation Cooled
The S&P GSCI fell 0.8% in April as the Fed’s preferred measure of inflation, Personal Consumption Expenditures (PCE), fell slightly on a year-over-year basis to 4.6%. Continued elevated readings of inflation, albeit cooling, led to market expectations that the Fed would hike rates again in May to bring inflation back to its 2% target. Commodities…
- Categories Commodities
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- Commodities
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Breakfast – The Most Important Meal of the Day
The first quarter of 2023 was a slow start to the year for commodities in general. The S&P GSCI Dynamic Roll Breakfast (OJ 5% Capped) also had a slow start, down 3.1%, after a solid 2022 performance of 14.12%. Maybe a higher weight to coffee would give the index the caffeine kick needed to boost…
- Categories Commodities
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Commodities Could Not Escape the Sea of Red Seen Across Asset Classes in February
The S&P GSCI, the world’s leading commodities benchmark, could not escape the volatile markets experienced in February, as the index fell 3.83% for the month. Despite recent declines, inflation remained high, which kept the U.S. Fed steadfast in its rate-hiking campaign, and expectations for a possible easing by year-end 2023 were squashed in the latest…
- Categories Commodities
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Introducing the First Benchmark Commodity Index Incorporating Environmental Metrics, the S&P GSCI Climate Aware
As the world continues to focus on sustainability and the energy transition, it is understandable that market participants are seeking to incorporate sustainability considerations into their commodities portfolios. To that end, on Feb. 23, 2023, S&P Dow Jones Indices (S&P DJI) launched the S&P GSCI Climate Aware, utilizing a new environmental dataset developed in collaboration…
- Categories Commodities, ESG
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Commodities Hit the Brakes in June
The prospect of higher interest rates, fears of a prolonged global economic slowdown and a strong U.S. dollar put the brakes on commodities prices in June. The S&P GSCI, the broad commodities benchmark, ended the month down 7.6%, taking YTD performance to 35.8%, still the best first half performance since 2008. The deteriorating economic outlook…
- Categories Commodities
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Food and Energy Inflation Concerns Drive Commodities Higher in May
Record inflation prints, export embargos and import bans helped the S&P GSCI, the broad commodities benchmark, to post another monthly gain in May, ending the month up 5.1% and bringing its YTD performance to 47.0%. The ongoing disruptions to the flow of energy and agricultural commodities out of Ukraine and Russia pushed energy and grain…
- Categories Commodities
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- Commodities
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Commodities for Breakfast
Except for intermittent fasting groups or keto dieters who tend to skip it, breakfast is considered by many to be the most important meal of the day. Now, there is a reliable and publicly available benchmark for the performance of the most liquid commodities typically consumed at breakfast. The S&P GSCI Dynamic Roll Breakfast (OJ…
- Categories Commodities
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Reductions in Risk Caused Disparate Returns for Commodities in April
Another higher inflation reading helped the S&P GSCI, the broad commodities benchmark, to post an additional 5.1% gain in April. Many market participants realized the U.S. Fed may be behind the curve and have started allocating capital to commodities in 2022. Agriculture and energy continued to outperform last month, while metals and livestock underperformed. Among…
- Categories Commodities
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- Commodities
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