Commodities increased slightly in March as positive fundamentals and heightened macroeconomic risk supported returns. Nelson Louie, Global Head of Commodities in Credit Suisse’s Asset Management business, said, “Commodities were driven largely by fundamental factors in March, and returns were generally uncorrelated with other asset classes. The key themes continued over from January and February, and were largely related to one-off event-driven risks which negatively impacted supplies.
While weather risks seem to be subsiding in North America with the end of the winter season, the risk of further extreme climate events in South America and other parts of the world are still possible. In addition, heightened macroeconomic risk in Ukraine, and in other developing countries, most notably China, may continue to impact economically sensitive commodities.” (Press Release)