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 Read more […]
The commodities bull market party continued in April. The S&P GSCI was up 2.8% for the month and up 18.2% YTD. The Dow Jones Commodity Index (DJCI) was flat in April and up 7.6% YTD, reflecting its lower energy weighting. Petroleum prices, once again, were the standout drivers in the broad commodity index in April, 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 […]
As summer gets underway, there are some commodities that do seasonally well during this time of year. The one that historically does best in the summer is unleaded gasoline with an average historical third quarter return of 8.2%. This is not surprising from the increased demand from summer driving as people vacation. However, the Read more […]
While most of the markets have calmed as investors wait for Brexit and the Fed rate decision, industrial metals are crashing. The S&P GSCI Industrial Metals Total Return is down 8.7% month-to date (through May 23, 2016,) and on pace to record its worst month since May 2012, when it lost 9.7%. At this rate, the Read more […]
Below are some quotes from the latest Oil Market Report from the IEA that may overpower Chinese slowing demand growth – even with a surprise interest rate cut. “there is a degree of opacity” “The Chinese administration does not routinely disclose information… thus little up‐to‐date official information is available” “A particular uncertainty concerns the division between commercial and government storage” “unreported Read more […]
The S&P GSCI Gold lost 3.9% in May and has hit its lowest index level since January. This questions whether gold can recover after its biggest historical drop since 1981. According to the Federal Reserve, the U.S. economy is strengthening, labor market conditions are improving and inflation has been low in the expanding economy. According to Read more […]
Finally, in April, commodities got hot enough to turn around even the base metals (also known as the industrial metals,) up 1.8% for the month. Although this comeback is not driven by the main supply shocks we are experiencing in energy and agriculture, it is fundamental in nature. China’s State Reserves Bureau (SRB) is now buying copper Read more […]
Industrial Metals are historically the most economically sensitive sector besides energy. While Chinese oil demand growth is set at 3.6% in 2014 and HSBC’s Chinese Manufacturing Purchasing Managers’ Index (PMI) edged down to 50.8 in November, barely above the key 50-threshold delineating expansion from contraction, according to IEA’s OMR Report, nickel is the only commodity in petroleum and industrial Read more […]
Congratulations to the Chicago Blackhawks on their awesome win last night! I must admit I was very excited watching the most amazing finish I have ever seen in hockey, but as a commodity lady my first thought was about the metal in the Stanley Cup and what is it worth, especially given the current environment of Read more […]
