“Strong demand growth is needed to reduce what still appears a very large oil overhang,” Kevin Norrish, head of commodities research at Barclays, said in the article.
The El Nino weather phenomenon is affecting weather conditions and cutting into the supply outlook on agricultural products. [Great Grains: Dueling Views on Ag Commodity ETFs]
“Extreme weather from El Niño may be the biggest driving force in the solid gains for every single one of the eight commodities in the sector in June,” Jodie Gunzberg, global head of commodities at S&P Dow Jones Indices, said in the FT article.
Meanwhile, industrial metals are at the mercy of fluctuations in China. The subdued economic data from China added to concerns about global growth, along with demand for other raw resources that fuel the growth.
For more information on commodities, visit our commodity ETFs category.
Max Chen contributed to this article.