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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Commodity Market Increased In January Amid Improved Macroeconomic Indicators

NEW YORK, Feb. 12, 2013 /PRNewswire/ -- Commodities benefited from an uptick in global growth momentum in January.

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

Nelson Louie, Global Head of Commodities in Credit Suisse's Asset Management business, said, "Commodities increased in January, against the backdrop of a continued gradual improvement in global growth momentum, with the US data for the month of December suggesting that the fiscal cliff had little impact on spending.  The Purchasing Managers Indices suggest that the fiscal cliff resolution has seen business begin to increase production in many regions.  In addition to the positive data, risk appetite benefited from the decision by the US Congress to delay the debt ceiling negotiations, removing the most acute systemic risk that markets were expecting to face in the first quarter." 

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, "Over the year ahead, the rate of global growth will likely once again be a key to commodity performance, as will continued low interest rates.  As expected, the January Federal Open Market Committee statement contained minimal changes relative to the December meeting.  Inflation may overshoot expectations, which remain near the Fed's target of 2%, if economic activity begins to pick up more robustly than expected.  Commodities have historically tended to outperform during periods of higher than expected inflation.  We believe investors will continue to derive long-term diversification benefits that commodities provide."

The Dow Jones-UBS Commodity Index Total Return was up by 2.40% in January.  Overall, 18 out of 22 index constituents posted positive returns.  Energy was the best preforming sector, up 3.42%.  WTI Crude Oil posted slightly stronger gains than Brent Crude Oil.  The Seaway pipeline was expanded, allowing more crude to move from Cushing, Oklahoma to the Gulf Coast, where it can be sold at higher prices.  Agriculture increased 3.08% on the back of colder weather in the US Midwest which could threaten grain production.  Soybeans was supported by US demand, which continues to be strong.  Corn also increased following the latest World Agriculture Supply and Demand report.  The USDA reduced its ending inventory estimate below expectations, due to increased feed usage and export expectations.  Wheat increased slightly after Argentina's agricultural ministry cut its wheat production forecast, citing extreme weather as the reason for the decline.  Industrial Metals gained 2.29%, supported by signs of improving global growth.  Precious Metals was relatively unchanged, up 0.20%.  While upbeat economic data from the world top economies weighed on Gold, Silver still seemed to benefit from expectations the Federal Reserve would continue its monetary easing policies.  Livestock was the worst performing sector, down 1.31%.  While Live Cattle led the sector lower, Lean Hogs posted a slight increase.  The USDA Livestock Slaughter Report for December showed reduced lean hog supplies relative to November and December 2012.

About the Credit Suisse Total Commodity Return Strategy

1 of 4

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.
Submit an article to us!
DOW 16,856.72 -128.89 -0.76%
S&P 500 1,960.03 -12.80 -0.65%
NASDAQ 4,378.92 -40.1140 -0.91%

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