Weakest raw 2013

Commodity sector for the second consecutive year was the worst performing asset class in the world.

 

 Despite the relative stabilization of commodity markets after the crisis since 2008, largely continues to be unfavorable for the sector. It is guaranteed the performance of the benchmark Dow Jones-UBS Commodity Index, which in recent months stepped up unseen since early 2009 levels.

Commodity prices generally move without drastic changes in the last few years. However, shares and property market rebounded strongly, fueled by low interest rates and ongoing global stimulus measures by central bankers.

Unfortunately for investors and producers of raw materials market for the second consecutive year grunge took pole position for the most poorly performing asset class. On one hand, puts the sector expectations of a lower level, even slightly better performance in 2014 will be seen as a great success. On the other hand, the continuing danger to the entire commodity markets remains.

Slowdown of the Chinese economy - the largest consumer of nickel in the world - reflects the expected price of the metal. Raw material stocks on the London Metal Exchange (LME) rose by 83 percent year on year to a record 256,000 metric tons.

Pressed by record global harvest of 711.4 million metric tons of cereals failed to deter the onslaught of sales, which largely affected the other cereals.

Undoubtedly the most discussed item in 2013 was gold. The price of the yellow metal, which achieved steady annual growth in the past 12 years, finally relented, and in a spectacular way. Year, which was the worst of the precious metal since 1981, came amid record of Wall Street and the reduction of monetary stimulus by the Federal Reserve.

Performance of maize in 2013 contrasts sharply with that in the previous year. Price dropped more than a third after reaching record levels in 2012, despite the severe drought year earlier in 2013, the weather improved, which helped the flourishing industry in the U.S.. According to estimates of the U.S. agricultural ministry harvest the previous godinae amount to about 14 billion bushels, an absolute record in the history.

Given the worst year for gold is hardly a surprise that a similar fate has struck other leading precious metal - silver. Price movements of the gray metal is also inextricably linked with the policy of the Fed.In view of the projected additional contraction stimulated by the U.S. central bank short-term and medium-term real perspective to the value of the metal does not look particularly favorable