- Energy fell 7.15% as mild US temperatures reduced heating demand for Natural Gas and on increased expectations that higher crude oil prices may continue to incentivize US shale production, impeding the progress of the global inventory rebalance.
- Precious Metals decreased 2.56% as the US Dollar strengthened on news that the US Fed may implement faster-than-expected interest rate hikes to contain rising inflation.
- Industrial Metals declined 2.17% as a stronger US Dollar made base metals more expensive.
- Livestock fell 1.92%, led lower by Lean Hogs, after the USDA reported a decline in US pork exports in December 2017 compared to the year prior, potentially indicating softening demand.
- Agriculture increased 4.71%, led higher by Soybean Meal, as Argentina faced its worst drought in ten years, hurting soybean crop production expectations.
- Spot Return: price return on specified commodity futures contracts;
- Roll Yield: impact due to migration of futures positions from near to far contracts; and
- Collateral Yield: return earned on collateral for the futures.
Certain risks relating to investing in Commodities and Commodity-Linked Investments: Exposure to commodity markets should only form a small part of a diversified portfolio. Investment in commodity markets may not be suitable for all investors. Commodity investments will be affected by changes in overall market movements, commodity volatility, exchange-rate movements, changes in interest rates, and factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Commodity markets are highly volatile. The risk of loss in commodities and commodity-linked investments can be substantial. There is generally a high degree of leverage in commodity investing that can significantly magnify losses. Gains or losses from speculative derivative positions may be much greater than the derivative's original cost. An investment in commodities is not a complete investment program and should represent only a portion of an investor's portfolio management strategy.Copyright © 2018, CREDIT SUISSE GROUP AG and/or its affiliates. All rights reserved. View original content: http://www.prnewswire.com/news-releases/commodities-decreased-on-production-concerns-and-weakening-demand-300611843.html SOURCE Credit Suisse AG