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Commodities declined in November.

New York: Credit Suisse Asset Management revealed commodities declined in November as demand expectations for livestock and base metals weakened.

The Bloomberg Commodity Index Total Return performance was negative for the month, with 11 out of 22 Index constituents posting losses. Credit Suisse's Total Commodity Return Strategy is managed by a team with over 30 years of experience, and seeks to outperform the return of a commodities index, such as the Bloomberg Commodity Index Total Return or the S&P GSCI Total Return Index, using both a quantitative and qualitative commodity research process. Commodity index total returns are achieved through:

Global Head of Commodities for Credit Suisse Asset Management, Nelson Louie said: "Base metal supplies continued to be affected by production restrictions in Asia amid strong demand. However, the sector may face some headwinds as China adjusts policies to prevent its housing market from overheating. Within Energy, Natural Gas prices continued to swing on changing forecasts. As pipeline projects remain incomplete, there is the potential for bottlenecks to occur where gas production is not able to reach demand. In that scenario, a colder-than-expected winter could drawdown immediate inventories. Elsewhere, OPEC reached a decision to extend the oil production cuts through the end of 2018, with reviews scheduled throughout the year. The group remains focused on bringing inventories down to five-year average levels. The main risk to this strategy is the potential response from US producers who may grow production at higher prices. One difference now, however, is that shale producers may be exercising more discipline in growing output."

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Jan 17, 2018
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