Cross Commodities: September – Global Trade Wars Intensify – Risk Appetite is Dampened – Yet Supply Concerns Support Commodities

The commodities market over the year has been strained, negatively impacted by rising global trade tensions, emerging market (EM) chaos and a strong U.S. dollar. However, over the month of September, each major commodity sector recorded an increase in price returns. With the U.S. dollar remaining unchanged over the period (the first non-positive move in the U.S. dollar in five months) commodity markets benefited, while U.S. sanctions and poor weather helped to boost supply concerns in both the agricultural and energy segments.  

KEY FORCES DRIVING THE COMMODITIES MARKETS YEAR-TO-DATE

1.      Global Trade War Escalates 

2.      Emerging Markets Continue to Suffer

3.      Firm U.S. Dollar

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