Commodity Update – Position for price recovery

by: Georgette Boele , Casper Burgering , Frank Rijkers , Hans van Cleef

The CRB index has moved lower driven by lower oil and metal prices. We see near-term price weakness as an opportunity to position for a recovery. An expected recovery in base metal prices will likely compensate weakness in WTI and gold prices. We remain positive on an one-year horizon with an expected performance of the CRB of around 10% driven by strong stronger global demand and a diminishing supply overhang.