2014 commodity rally is cold-related


After losing 10% in 2013 while the MSCI World Index of stocks gained 24%, the Dow Jones-UBS Commodity Index made up some ground in January, eking out a small advance while the MSCI index slid 3.7%.

But as rallies go, it was a pretty lame one. The DJ-UBS index's biggest weighting is for natural gas at nearly 14.5%, and gas futures surged 18% amid the coldest January in memory. Spring will come soon though, and then what?

Second in the index weighting is gold which gained 3% in January - not the greatest bounce considering a 29% dive in 2013.

Commodities tied more closely to global economic activity - oil and industrial metals - make up 42% of the sector's weighting and they were pretty much uniformly in the red.

Broad commodity ETFs: DBC, DJP, GSG, RJI, GCC, USCI, CFD, CTF, RGRC, GSC, LSC, GSP, DEE, DJCI, DYY, DDP, BCM, CMD, UCI, UCD, CMDT, SBV, DPU, FTGC, CSCB, CSCR

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Comments (1)
  • Mattster
    , contributor
    Comments (165) | Send Message
     
    For natural gas spring will take something off the prices but seems like this rally has more to do with new US energy policy, conversions, and exports than the weather imo
    4 Feb 2014, 10:10 AM Reply Like
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