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MONTHLY COMMODITY UPDATE

Source: Bloomberg **The S&P GSCI (formerly the Goldman Sachs 

Commodity Index) is a world-production weighted index that is based on 

the average quantity of production of each commodity in the index, over 

the last five years of available data. 

MARKET SCENARIO  

February has witnessed the overall S&P GSCI Index to drop 
down to 3.34% MTD and 0.03% YTD. Commodities decreased 
in February on expectations of increased US shale production and 
weakening demand for metals due to a stronger US Dollar. As for 
the movement of precious metal prices is concerned, February 
was a relatively calm month. Precious metal decreased as the US 
Dollar strengthened. Additionally, industrial metals declined, as 
the stronger US Dollar made base metals more expensive. The 
energy sector went through market sell-off and fall in crude oil 
prices, which affected the movement of the energy sector in 
February. Natural gas prices edged lower holding support level 
despite colder than normal weather. Agriculture increased slightly, 
led higher by Soybean Meal, as Argentina faced its worst drought 
in ten years, hurting soybean crop production expectations. 

Energy Sector

S&P 500 Energy index went down by 5.61% MTD and by 
0.84% YTD.

Energy fell as mild US temperatures reduced heating demand for 
natural gas and on increased expectations that higher crude oil 
prices may continue to incentivize US shale production, impeding 

the progress of the global inventory rebalance. Stronger-than-
expected global oil demand along with high compliance rates to 
the OPEC-led production cuts helped with the global inventory 
rebalance, and this is expected to continue throughout 2018. 
Risk still remains regarding the growth of US oil production 
outperforming expectations. 

Sep-17

Oct-17

Nov-17

Dec-17Jan-18Feb-18

S&P GSCI Commodity Index

2800

2700

2600

2500

2400

2300

2200

2100

2000

 Commodity

Trading 

Platform

Price (as on 31st 

Jan 2018)

Price (as on 

28th Feb 2018)

Monthly Price 

Change (%)

Monthly HighMonthly Low

Energy

 

 

 

 

 

 

Oil (Brent) ($ per 

barrel)

Floor

68.89

64.73

-0.06

69.72

61.48

Natural Gas ($/

MMbtu)

Floor

3.00

2.67

-0.11

2.85

2.57

Metal

 

 

 

 

 

 

Gold ($ / troy ounce)

Floor

1343.13

1319.89

-0.02

1361.82

1307.17

Copper($/mt)

 LME 

7118.00

6931.00

-0.03

7253.00

6733.00

Silver ($ / troy ounce)

Floor

17.24

16.43

-0.05

17.40

16.19

Agriculture

 

 

 

 

 

 

Corn (¢ / bushel)

Floor

361.50

382.00

0.06

384.75

364.25

Cotton (c/lb)

Electronic

78.36

82.93

0.06

83.05

76.44

Soybeans (¢ / bushel)

Floor

995.75

1055.50

0.06

1059.50

979.25

Wheat (¢ / bushel)

Floor

465.50

495.00

0.06

499.50

451.00

Sugar ($/lb)

Electronic

13.37

13.38

0.00

14.02

12.82

Source: Bloomberg