NEW YORK – Commodities experienced mixed performances during August as the market experienced more consolidation, according to Credit Suisse Asset Management. The Bloomberg Commodity Index Total Return performance was negative for the month, with 13 out of 22 Index constituents trading lower.
Credit Suisse Asset Management observed that livestock was the worst-performing sector, down 4.18 percent, led by lean hogs. A decrease in demand expectations due to Russia's ban on US pork, combined with reduced cases of PED Virus, continued to strengthen downward pricing pressure.
Agriculture dropped 2.25 percent, led lower by soybean oil. Wheat, however, was the only grain to end the month in positive territory amid concerns that supplies from the Black Sea region might be disrupted due to escalating tensions between Russia and Ukraine.
Precious Metals shrank 1.00 percent, led lower by silver. While gold was supported by geopolitical uncertainty, the strengthening US dollar and slowing physical demand weighed on silver.
Energy ended the month 0.22 percent lower despite the strength in natural gas. Brent crude oil declined on perceived weakness in the Eurozone, while WTI crude oil declined after the energy information administration reported Cushing inventories increased for three consecutive weeks.
Meanwhile, industrial metals was the best-performing sector, up 0.48 percent, supported by strong PMI reports out of the US.Credit Suisse AG calls itself one of the world's leading financial services providers and is part of the Credit Suisse group of companies.