This Day On The Street
Continue to site
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

Commodity Market Increased In December Due To Positive Fundamentals

NEW YORK, Jan. 13, 2014 /PRNewswire/ --  Commodities were higher in December due to positive fundamentals supporting the energy and industrial metals sectors.

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

Nelson Louie, Global Head of Commodities in Credit Suisse's Asset Management business, said, "The 2014 global economy looks to be the most orderly in several years, centering on modest yet stable growth.  We expect global growth to accelerate gradually in 2014, with most of the pick-up occurring in developed market economies, narrowing the growth gap with the Emerging Markets.  We believe this steady uptick in growth may be beneficial to commodities."

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, "Amid macroeconomic improvements in the US and abroad, correlations between commodities and traditional asset classes have been decreasing.  We expect individual commodities to continue to be increasingly driven by fundamental factors rather than macroeconomic headlines. While broad macroeconomic trends continue to be important, they will likely impact asset classes in different ways.  We continue to expect commodities to provide valuable diversification benefits going forward."

The Dow Jones-UBS Commodity Index Total Return increased 1.24% in December.  Overall, 11 out of 22 index constituents posted positive returns.  Industrial Metals was the top performing sector, up 4.89%, as positive economic data out of the US burnished the demand outlook for metals.  Energy increased 4.81%, with all sector components ending higher.  WTI Crude Oil outperformed Brent Crude Oil as increased pipeline capacity came online which will transport more crude oil out of the US Midwest, helping to reduce the discount of WTI to other crude oil grades.  Livestock declined 1.96%, led by Lean Hogs.  Live Cattle increased slightly on expectations of lower feedlot inventories in the Southern Plains, supported by reports of strong cash markets late in the month.  Agriculture ended the month 2.80% lower as rains across major exporter Argentina and other South American countries eased heat stress on Corn and Soybeans and weighed on the sector overall.  China reportedly turned away a large shipment of US dried distillers grains (DDGs), a corn by-product, and more rejections are expected in coming weeks as Beijing imposes strict checks over an unapproved genetically-modified strain, which further weighed on Corn.  Precious Metals decreased the most, down 3.71%.  Investors continued to move away from gold as a safe haven after the US Federal Reserve announced that unemployment rates have improved enough for it to begin scaling back its bond-buying program from $85 billion of monthly purchases to $75 billion per month.  Inflation expectations remained low.

About the Credit Suisse Total Commodity Return Strategy

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
Only $9.95
14-Days Free
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
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs