| Commodities were lower in March, despite improving macroeconomic backdrop. Nelson Louie, Global Head of Commodities in Credit Suisse's Asset Management division, said, "While commodities were generally lower in March, this was due to commodity markets remaining vulnerable to global supply shocks. We believe that the majority of the price increase of oil over recent months was driven by tight fundamentals, with much of the risk premium related to supply risk, such as geopolitical risk."
"Agriculture remained vulnerable to weather disruptions and has recently been supported by reports of dry weather in South America and a dramatic cooling of temperatures for much of Europe in February. In base metals, new mining capacity proved more difficult and expensive to obtain while labor disputes continue to threaten existing production. This may bode well for component prices as macroeconomic risk subsides." (Press Release) |