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Leia Toovey
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Analysis and news focused specifically on the commodities, by geologists and commodities analysts and traders. I believe that commodities make the best investments, regardless of the macro economic picture, they key is not whether or not to invest in the commodities, but instead what commodities... More
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Geonomic Advisors
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GEOnomic Investing
  • Top Performing Commodities For January 0 comments
    Feb 1, 2013 5:17 PM

    Despite a lackluster performance on the last day of the month, commodities edged higher for the month of January. While the Thomson Reuters-Jefferies CRB index, settled down 0.25% Thursday, it rose 3% in January, its biggest gain since August 2011.

    1. Cotton

    Cotton added over 10% in the month boosted by speculative buyers betting that lower plantings and increased demand from China would finally boost the market. This was a welcome start for the fiber, which has seen double-digit percentage falls in the past two seasons.

    2. Platinum

    Platinum added about 7% this month, as a market already forecast to be in deficit was boosted by signs labor disruptions and mine closures in top producer South Africa would further reduce supplies. Some strong hedge-fund buying at the beginning of the month also added to the steep rally.

    3. Nickel

    Nickel added about 8% this month, boosted by restocking by stainless steelmakers. Canceled warrants, or orders to remove metal from warehouses, almost doubled in January. While this was a stellar performance, nickel tends to rally at the beginning of the year as mills restock. (According to data compiled by Bloomberg, nickel has climbed an average of 4.4% in January for the past 10 years.).

    4. Palladium

    Was boosted by the same supply disruptions that helped the platinum market. Palladium is also forecast to be in deficit this year, so any indications of supply disruptions will have an immediate effect on pricing.

    5. Corn

    Corn added more than 6% this month due to weather threats in South America.

    6. Crude

    Prices finished January with a gain of 6.1%, the strongest January advance since 2006, when they jumped 11.3%, according to FactSet data. Causing crude to rally was a setback in expansion of the Seaway when operator Enterprise Products Partners L.P. reduced deliveries by more than half at a terminal in Texas because of storage capacity issues.

    7. Brent Crude

    Brent crude gained 4.4% in the month, and touched a three-month high of $115.55 a barrel on Thurs Jan 31st as renewed tensions in the Middle East sparked supply concerns. On Thursday, Syria warned of a possible "surprise" response to an Israeli attack on its territory while Iran's delivered to the U.N. nuclear agency a plan to upgrade its refining equipment.

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