Commodities eased in May on weakening fundamentals across most sectors, according to Credit Suisse Asset Management. Energy decreased 3.28%, led lower by Natural Gas, as milder-than-normal weather forecasts for the first half of June reduced early summer cooling demand expectations. Agriculture declined 2.17%. Sugar, Soybeans and its byproducts along with Coffee faced headwinds as producers were incentivized to sell down their stockpiles amidst a sharply weaker Brazilian Real. Industrial Metals eased 1.04%, led lower by Nickel, which declined after Indonesia began to ease its export restrictions. Precious Metals increased 0.50% after multiple terrorist attacks and continued geopolitical tensions with North Korea increased the appeal of both Gold and Silver as safe haven assets. Livestock gained 7.42%. Lean Hogs increased after the USDA reported lower pork production and a reduction of frozen pork in storage for April.
