Commodities Favored with Mean Reversion
Market Commentary 1 Energy 3 Bloomberg Commodity Index (BCOM) Metals 6 Agriculture 11 Tables & Charts – January 2018 Edition DATA PERFORMANCE: 14 Overview, Commodity TR, Prices, Volatility Commodities Favored With CURVE ANALYSIS: 18 Contango/Backwardation, Roll Yields, Mean Reversion Forwards/Forecasts MARKET FLOWS: 21 Open Interest, Volume, - Commodities hitting stride with weak greenback, inflation & economic growth COT, ETFs - Energy is a bit too hot, agriculture too cold, metals the steady bull - Commodities set to shine when volatility returns to financial markets - Strong precious vs. industrial metals may be anticipating a bit of stock market normalization Gold Outlook 2018 Webinar, February 22, 11: 00 am EST https://platform.cinchcast.com/ses/s6SMtqZXpK0t3tNec9WLoA~~ Mike McGlone – BI Senior Commodity Strategist BI COMD (the commodity dashboard) Mean Reversion, a Potential Key 2018 Commodity Bull Gaining Stride Theme, Favors Commodities Crude to Copper: Commodity Relative-Value Performance: January +2.0%, Spot +1.9%. Foundation Is Firming. Agriculture is favored vs. energy, (Returns are total return (TR) unless noted) at least in the shorter term, with mean-reversion overdue in corn, the commodity with the most net-short positions, (Bloomberg Intelligence) -- The commodity bull market vs. crude oil (the longest). Energy should stabilize, metals should be just hitting its stride. Relative to its primary remain strong, and grains are ripe to advance about a drivers -- a declining dollar, rising inflation, demand third on some weather normalization. exceeding supply and expanding global economic growth -- the Bloomberg Commodity Spot Index's four-year high Commodities should have an advantage in 2018 vs. in January is on the right path.
[Show full text]