Several catalysts, including U.S. Corn Belt production issues, drove corn futures prices to a new five-year high in June 2019. Investors were net short corn in May 2019, and the short covering contributed to the break higher. Prices broke through the 2017 peak after heavy floods in the Midwest prevented farmers from planting corn in Read more […]
There was a notable reversal of fortunes across the commodities complex in May. The S&P GSCI was down 8.2% for the month but remained up 8.5% YTD. The Dow Jones Commodity Index (DJCI) was down 3.6% in May and up 3.7% YTD, reflecting its lower energy weighting. A sharp correction in petroleum prices combined with Read more […]
It has been a noteworthy start to 2019 for commodities. The S&P GSCI was up 1.6% in March and up 15.0% YTD. The performance of the Dow Jones Commodity Index (DJCI) was more modest in March, up 0.1%, and it was up 7.5% YTD, reflecting its lower energy weighting. Petroleum prices were the standout driver Read more […]
In the context of declining commodity prices following the global financial crisis, inverse indices became popular for market participants looking to profit from negative returns. As the oil war unfolded and drove commodity prices further down, market participants took a renewed interest in using inverse indices to bet against the market. When commodities rebounded last Read more […]
If you experience your most expensive 4th of July ever, it may be from the unprecedented shortages of commodities in June. Since 1970, as far back as the S&P GSCI has data, there has never been a June with as many commodities in backwardation as in June 2014. Of 24 commodities in the S&P GSCI, 23 of which are in Read more […]
It doesn’t take a weatherman to point out the crazy weather we have experienced in the recent past. There are more severe droughts, storms, freezes and heat that many blame on climate change. The National Climate Assessment, that will drive Barack Obama’s environmental agenda, notes that average temperature in the US has increased by about 1.5F (0.8C) since 1895, Read more […]
We have heard for many years now about the Chinese super-cycle that supported commodity prices since 1999 and we have also heard many debates about whether it has ended. So if it has ended what now? How huge is the impact on commodity prices? That all depends on the level of inventories that result from Read more […]
Happy Chinese New Year for all celebrating! As a special tribute, this post will focus on the fact that all 5 commodities that start with the letter “c” (the same letter China starts with) in the S&P GSCI Agriculture and Livestock have had positive returns in 2014. I picked the agriculture and livestock to symbolize the importance Read more […]
Hear the impact of the Syrian tension on oil and why the effect on copper might be different than in historical wars. The S&P GSCI® and Dow Jones UBS Commodity Index both fell in September, returning -3.4% and -2.6%, respectively. Some highlights from the S&P GSCI® include: Energy: Despite losing 4.5% on the month, S&P Read more […]
What strategies will be the most profitable over the next 12 months? Which spread will have the greatest opportunity? These are just a few questions we asked the audience at our S&P Dow Jones Indices 7th Annual Commodities Seminar, and we thought you may be interested in their answers. As I mentioned in a recent CNBC interview, Read more […]
