This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Commodity Prices Fall In February Despite Positive Economic News

The UBS Bloomberg Constant Maturity (“CM”) Commodity Total Return Index (ticker: CMCITR), a modern commodity index designed to reduce the potential negative effects of contango, returned -4.02 percent in February, following an increase of 2.62 percent in January, according to data released today by Van Eck Global and Bloomberg. The index has returned -1.51 year-to-date.

Commodity indexes declined in February as several positive news developments failed to boost commodity demand growth. The U.S. economy continued to strengthen as housing starts moved to their highest levels since 2009, while U.S. retail sales increased and better-than-expected U.S. jobless claims data hinted at a sustained recovery in U.S. employment. There were also signs that the Chinese economy is improving, as exports in China continued to rise and imports moved to their highest level since February 2012. However, commodities appeared to face strong headwinds from the pending U.S. government “sequester” and the release of the Federal Reserve’s most recent meeting minutes, which indicated a potential end to its quantitative easing program.

While all commodities sectors turned negative in February, energy was the least negative performing sector of the month, as a decline in natural gas inventories offered some relief to a lack of oil demand growth. Agriculture weakened on increased supply, while livestock and industrial metals fell. The precious metals sector was the worst performer for the month, falling to seven-month lows following the release of the aforementioned Fed minutes.

CMCITR roll yield was positive for the period. WTI contango widened as Brent backwardation narrowed. Natural gas contango widened and remained within manageable levels. Wheat contango narrowed and sugar moved back into contango during the month. Copper, gold and silver contango all narrowed in February.

CMCITR outperformed the other main “constant maturity” indexes during the month, including the Continuous Commodity Index (CCITR: -4.31 percent, -2.19 percent YTD) and the Greenhaven Continuous Commodity Index (GCC: -4.38 percent, -2.24 percent YTD).

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG

Markets

DOW 18,213.32 -75.31 -0.41%
S&P 500 2,107.84 -9.55 -0.45%
NASDAQ 4,983.7760 -24.32 -0.49%

Partners Compare Online Brokers

Free Reports

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