Tag Archives: agriculture
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…
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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…
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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…
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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…
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Commodities Continued to March Higher Last Month
The S&P GSCI posted its best quarterly return in decades, as inflation continued to post the highest readings in decades. Commodities rose another 9.63% in March after an 8.8% rise in February. Geopolitical conflict and inflation were the two main reasons for the broad-based uptick in commodities prices (see Exhibit 1). The S&P GSCI Energy…
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Commodities React to Conflict
Military and economic warfare rocked the financial markets in late February. Beyond the unthinkable human impact, the Russia-Ukraine conflict has had sizeable short- and long-term implications for commodities markets. The S&P GSCI ended the month up 8.8%, driven higher by fears over the continuity of energy supplies in Europe, the dominance of Russia as a…
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Commodities on the Front Foot in January
The strong inflation tailwind that supported commodities in 2021 has bled into 2022, as the S&P GSCI started the year on the front foot, up 11.6% in January. In contrast, the S&P 500® fell 5.2% over the same period. Inflation has traditionally helped commodity markets. Commodities have also historically been a good hedge against inflation….
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Commodities Crushed It in 2021
The market standard commodities benchmark, the S&P GSCI, crushed it in 2021, rising 40.35% and outpacing other similar commodity indices and asset classes, as high and rising inflation provided a great backdrop for this inflation-sensitive asset class. Commodities finished strong in December, rising 7.59% over the month as energy bounced back and Omicron COVID-19 variant…
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Energy Markets Tumble in November
The S&P GSCI, the broad commodities benchmark, declined 10.8% over the month. The poor performance was driven almost exclusively by a major correction in energy prices, as the discovery of the Omicron COVID-19 variant cast a lengthening shadow over demand growth, added further complications to global supply chains, and dampened economic growth forecasts. The release…
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Stretched Supply Chains Spur Commodities Prices Higher
The S&P GSCI, the broad commodities benchmark, rallied 5.8% in October. Performance was solid across sectors, with energy-related commodities continuing to outperform and grains and metals regaining some of their recent weakness. With two months of the year remaining, the S&P GSCI is up 46.3% YTD, the index’s best performance over the first 10 months…
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