Commodities Fell on Rising Crude Oil Supply Expectations

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The FINANCIAL — The Bloomberg Commodity Index Total Return decreased for the month, with 10 out of 22 constituents posting losses.

Credit Suisse Asset Management observed the following:

Energy declined 3.34% as Crude Oil and petroleum products were weighed down by increased exports from the OPEC-led production group and after the US provided waivers to some crude oil importers to continue purchasing supplies from Iran.

Precious Metals increased 0.23% after the US Federal Reserve may have indicated that it was closer to finishing hiking the Federal Funds Rate than previously anticipated.

Agriculture gained 0.43%, led higher by Soybeans, after constructive statements from the US administration on US-China relations increased expectations that US soybean exports to China will resume sooner than expected.

Industrial Metals rose 1.86% on improved market sentiment towards the ongoing US-China trade dispute and on rising prospects for new stimulus measures in China after the country’s manufacturing growth slowed in October.

Livestock was up 2.30%, led higher by Lean Hogs, after a growing number of reported African Swine Fever cases in Chinese feedlots heightened concerns of a large scale outbreak, which could increase demand expectations for US pork exports.


About the Credit Suisse Total Commodity Return Strategy

Credit Suisse’s Total Commodity Return Strategy is managed by a team with over 35 years of experience, and seeks to outperform the return of a commodities index, such as the Bloomberg Commodity Index Total Return or the S&P GSCI Total Return Index, using both a quantitative and qualitative commodity research process. Commodity index total returns are achieved through:

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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.

As of November 30, 2018, the Team managed approximately USD 8.3 billion in assets globally.


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