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Commodities at Multi-Year Highs

The Reuters/Jefferies CRB Index a global commodity benchmark which tracks 19 mostly U.S. traded commodities has led a rally in the past 2 months and it is currently up 6.13% for the month so far, tracking for its third consecutive month of gains. Grains and Metals haven been the biggest winners amongst the index for the year so far such that NYBOT Cotton and COMEX Gold have both closed at an all-time record high of $1.4711/pound and $1410.1/ounce respectively on Tuesday, while COMEX Silver is trading at a 30-year high of $29.34/ounce.

The CRB Index recorded this past September its best September percentage gain ever since its inception in 1956 as it finished up 10.96%, and it is now trading at 25-month high as it reached an intraday high of 320.38 on Tuesday, its highest level since October 6, 2008. The Reuters/Jefferies CRB Index is also outperforming the S&P year to date, currently up 12.61% versus a gain of 9.2% for the year so far on concerns of a depreciating dollar. In addition, commodities are on fire since the announcement of a second stimulus plan made by the Federal Reserve last Wednesday. Sixteen of the nineteen CRB components are trading up since November 3rd.

The biggest winner amongst the CRB index higher includes NYBOT Cotton futures for March 2011 delivery which has soared more than 94% year to date as of Tuesday’s record closing price of $1.4711/pound, and has been trading up more than 8% since the launch of a second Quantitative Easing plan announced last Wednesday. Silver, the industrial metal is also leading in the commodity rally, up 71.6% for the year, and 17.7% month to date. Refer to table below for commodities Winners and Losers for 2010 as of November 9th closing levels.

CRB Index Components (as of 11/9 close)


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