Tag Archives: coffee
Commodities Rise with Inflation in July
The S&P GSCI rose for a fourth consecutive month, by 1.6% in July, as the main positive catalysts of 2021 remained in play. Many individual commodities constrained by supply chain bottlenecks and disruptions continued to be in deficit around the world. Half of the U.S. experienced drought conditions last month, compared to 25% this time…
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High Levels of Dispersion across the Commodities Complex in May
At the headline level, it was a rather subdued month for commodities. The S&P GSCI gained 2.5%, taking YTD performance to 26.0%. While the S&P GSCI’s upward momentum attenuated, high dispersion in the performance of single commodities continued, albeit with reversals among the leaders and laggards. Most of the grains sagged to the bottom of…
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Commodities Start the Year on the Front Foot
The headline S&P GSCI rose 4.9% in January, as the industrial portion of the global economy continued to bounce back from the first wave of the COVID-19 pandemic and lockdowns in 2020, and the prices of many agricultural commodities spiked higher on the back of record demand from Asia and the growing risk of grain…
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Industrial Commodities Benefit from Hopeful COVID-19 Vaccine News
November proved to be a good month for risk assets, including commodities. The headline S&P GSCI rose 12.0%, outperforming the S&P 500®, which gained 10.8%. Promising developments on the COVID-19 vaccine front and the U.S. election outcome rewarded risk assets such as energy and industrial metals, while safe-haven assets like gold lost some luster. The…
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A Second Wave Sinks Commodities in September
The headline S&P GSCI fell 3.6% in September on the back of growing concern regarding the prolonged economic impact of a second wave of the COVID-19 pandemic. Across sectors, both industrial metals and energy contracted, while the agriculture and livestock sectors benefited from cursory signs of the return of demand from China. The S&P GSCI…
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Dollar Malaise Supports Commodities in July
The S&P GSCI rose 3.8% in July 2020, taking its YTD performance to down 33.9%. Weakness in the U.S. dollar against a range of currencies supported commodities. The broad U.S. dollar fell to a two-year low at the end of the month. Lower real rates, a weaker dollar, and widespread fiscal and monetary stimulus measures…
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Will April Pain Lead to May Gain for Commodities?
COVID-19 continued to wreak havoc across commodities markets in April. The S&P GSCI fell 9.67% in April and 47.92% YTD. Economic data continued to weaken into uncharted territory. Supply chains crucial to the flow of commodities from extraction to consumption experienced a sudden shut off and demand collapsed. Energy and agriculture underperformed, while metals offered…
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Coffee Drips to a New Low
Over the past five years, the S&P GSCI Coffee underperformed the other soft commodities, as can be seen in Exhibit 1. Broad oversupply issues that have been seen in most commodities have been particularly pronounced in the coffee market. In addition to the major coffee-producing countries’ respective economic problems, these countries also generally suffer from…
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July 2019 Commodities Performance Highlights – A Nickel for Your Thoughts
Commodities markets hit the summer doldrums in July. The S&P GSCI was down 0.2% for the month and 13.1% YTD. The Dow Jones Commodity Index (DJCI) was down 0.8% in July and up 6.1% YTD, reflecting its lower energy weighting. Impressive rallies in nickel and silver markets were pitched against a slump in agriculture prices,…
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Commodities Performance Highlights – June 2019
Commodities markets resumed their upward trajectory in June. The S&P GSCI was up 4.4% for the month and up 13.3% YTD. The Dow Jones Commodity Index (DJCI) was up 3.1% in June and up 6.9% YTD, reflecting its lower energy weighting. A recovery in petroleum prices and an impressive rally in gold were the main…
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