Several months ago, I ranked commodities by a combination of momentum and roll yield. Since then, I received some positive feedback, so I thought I'd update the table.
A quick methodology recap: Momentum and roll yield are two of the most commonly discussed strategies relating to commodity future investing, so it makes sense to combine them into one strategy. The index on which the United States Commodity Index Fund (USCI), is based already does this, but using a screening approach rather than the ratings or "one number" approach that I prefer.
To create the actual rankings, I first sort the commodities by 6 month spot price change, 12 month spot price change, and roll yield individually, assigning a score of 1 to the top commodity, 2 to the 2nd from the top, 3 to the third from the top, and so on. The scores are then added up for each commodity (giving a double weighting to roll yield so it comprises 50% of the final result), and the commodities are sorted by this result.
Looking at the result, we find gasoline ranked the highest, followed by brent crude, coffee and cotton. Near the bottom are copper, palladium and natural gas.
(Click chart to expand)
Disclosure: I am long USCI.