“Adverse weather impacted softs, particularly sugar, as frosts in Brazil and lower-than-average monsoon rain in India led to concerns over cane yields,” Nelson Louie, Global Head of Commodities for Credit Suisse Asset Management, said in a note. “The potential for future disruptive weather remains uncertain as expectations for a La Niña vary. Within Energy, OPEC’s tentative agreement for modest production cuts boosted market sentiment.”
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Looking ahead, central bank policies around the world may continue to support commodity prices as loose monetary policies would help stimulate growth and support inflationary pressures.
“Global central bank policy may influence commodity returns through year-end,” Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, said in a note. “Both US and non-US central banks seem committed to improving global growth and driving up inflation, each of which may prove supportive for commodities.”
For more information on the commodities market, visit our commodity ETFs category.