Commodities hit best quarter in almost three years on supply fears
Outlook for demand is running into troubling signs in the US and China, the two biggest consumers
New York — Commodities had their best quarter in almost three years, driven by supply concerns and optimism over demand. Investors, though, might not want to get too cocky. Now, the outlook for demand is running into troubling signs in the US and China, the two biggest consumers. In early March, China cut its goal for economic expansion, while a report on Thursday showed US growth cooled more than forecast. “It’s hard to make the case that, overall, commodities can stay in this uptrend,” said Rob Haworth, senior investment strategist at US Bank Wealth Management in Seattle that oversees $164bn. “Grains will have a tough time, and for industrial metals the underlying question is: what really is going on with China’s growth?” Haworth said. In the first quarter, total returns for the Bloomberg commodity index of 23 raw materials rose more than 6%, the most since the three months ended in June 2016. Crude oil paced the advance, while nickel led gains in industrial metals. A surge in Jan...
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