Commodities continued their overall negative performance during June with the Dow Jones-UBS commodity index seeing the lowest monthly closing price since July 2010. The four percent loss during the month was driven by negative price action across all the major sectors. The metal sector, both precious and industrial, contributed most of the negative return as the Federal Reserve's tapering comments and worries about China became the main focus. The energy sector was mixed with the difference in performance between the DJ-UBS and SP GSCI index being down to a difference in exposure to natural gas which suffered a 10.3 percent correction.
The individual performances reflect the sector performances above with both silver (minus 12.2 percent) and gold (minus 10.7 percent) figuring among the worst performing commodities during June. Orange juice fell heavily on news that consumption in the important US market was falling at a time of ample levels of supply in storage. At the top, we find both crude oils which despite a mid-month wobble performed well as attention turned to an expected Q3 pick-up in demand combined with geopolitical worries related to the Middle East.
Not surprisingly, our momentum monitor is negative almost across the board with live cattle and and sugar the only exceptions. Signs of slowing negative momentum is currently being seen in WTI crude which once again is approaching the psychological resistance level of USD 100 per barrel. Copper has also shrugged off the recent price-negative news related to China and the move away from key support at 298 cents/lb has raised the potential for negative momentum beginning to turn or at least slowing.
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Commodities Engulfed By Negative Momentum As July Begins
Published 07/02/2013, 03:56 AM
Updated 03/19/2019, 04:00 AM
Commodities Engulfed By Negative Momentum As July Begins
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