This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Commodity Market Stable Amid Continued Macroeconomic Uncertainty In November

NEW YORK, Dec. 12, 2012 /PRNewswire/ --  Commodities were relatively unchanged in November as continued macroeconomic uncertainty weighed on markets.

(Logo:  http://photos.prnewswire.com/prnh/20091204/CSLOGO )

Nelson Louie, Global Head of Commodities in Credit Suisse's Asset Management business, said, "Market attention remained on US fiscal negotiations at the end of November.  While a deal had yet to be made to avert the Fiscal Cliff, it was clear negotiations between the Republican-controlled House of Representatives and the President's office were active.  What a final deal will look like and when it will be passed is still highly uncertain.  Also, Eurozone leaders agreed to release the next tranche of aid to Greece in December, cooling imminent Greek concerns.  However, worries over the outlook for Europe in general remain heightened and will likely to continue to feature in the headlines and market activity in the future.  Meanwhile, there were continued signs of economic recovery reported during the month of November out of China and the US."    

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, "There are clearly signs of economic recovery while much uncertainty and potential headwinds remain.  As a result, major central banks have generally continued to pursue their exceptionally loose monetary policies in an effort to provide ongoing support to nascent recoveries.  Inflation may overshoot expectations if economic activity begins to pick up more robustly than expected or capital markets begin to react to negative real rates with capital outflows and currency depreciation. This scenario could be beneficial for those who use commodities as an inflation hedge."

The Dow Jones-UBS Commodity Index Total Return was up by 0.05% in November.  Overall, 12 out of 20 index constituents posted positive returns.  Industrial Metals was the best performing sector, up 6.99% for the month.  China's manufacturing Purchasing Managers Index ("PMI") readings continued to suggest recovery and expansion, reversing the summer decline.  Base metals were also supported by US October housing starts, reported at their highest level since 2008, being above expectations.  Livestock increased 1.48%, led by Lean Hogs, as a result of unexpected gains in pork cutout prices during a time of typically sluggish demand.  Hog futures tend to dip at the beginning of November on weakening seasonal demand, as consumers turn to turkey and other meat proteins near the holidays.  Precious Metals was relatively unchanged, up 0.25%, as ongoing concerns over Greece and Europe, along with the Fiscal Cliff debate, contributed to heightened volatility in currencies and precious metals.  Energy decreased 1.14%, led lower by Natural Gas.  However, crude oil and petroleum products increased after a volatile month with market sentiment closely following the Gaza conflict and the subsequent ceasefire.  Expectations that Greece would be able to avoid near-term bankruptcy brightened the outlook for oil demand from Europe.  Agriculture decreased 2.81%.  Soybeans remained under pressure following the release of the November USDA monthly World Agriculture Supply and Demand report.  Grains were generally weaker amid increased expectations for global supply.  

About the Credit Suisse Total Commodity Return Strategy

Stock quotes in this article: CS 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs