Commodities: Q4 2019 Overview And The Outlook For Q1 2020

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About: Invesco DB Commodity Index Tracking ETF (DBC), Includes: BCI, BCM, CCJ, CMDY, COM, COMB, COMG, COMT, CTT, DBB, DDP, DJCB, DJCI, DJP, DPU, DYY, FAAR, FCX, FTGC, GASL, GCC, GSC, GSG, GSP, PDBC, RJI, SCCO, SDCI, UCI, USCI, UUUU, WOOD, WY
by: Andrew Hecht
This article is exclusive for subscribers.
Andrew Hecht
Commodities, long/short equity, medium-term horizon, long-term horizon
Summary

Five sectors gain and one posts a loss in Q4.

Soft commodities are the leaders in Q4, but precious metals post the most significant gain in 2019.

Grains, meats, precious metals, and energy move higher in Q4, but base metals post a loss over the period.

Coffee was the best-performing commodity in Q4, but palladium posts the highest percentage gain in 2019.

A review of Q4 and best bets for Q1 2020 and beyond in commodities.

The raw material markets posted a gain in the final quarter of 2019 as the dollar index moved lower and a de-escalation of the trade war between the US and China supported commodity prices. The