Commodities gained for a second quarter on the last day of September. Natural gas and lumber were among the best performers, even as coronavirus clouded the outlook for the economy.
The Bloomberg Commodity Index BCOM, tracking 23 commodities, soared by approximately 9% for the third quarter this year. The index jumped by about 5% in the second quarter.
Natural-gas futures NGX20, 2.14%, skyrocketed by more than 44%. Meanwhile, lumber futures LB00, +1.29% LBX20, +1.29% surged forward by roughly 40%.
Adam Koos, the president, and portfolio manager at Libertas Wealth Management Group stated that the commodities rally speaks to investors’ confidence that the authorities will soon deliver a vaccine to the more high-risk demographic. The boost also points to expectations that companies will continue to open up. At the same time, the consumption of materials will start getting back to normal sooner.
Natural-Gas Futures Reported the Biggest Quarterly Percentage Rise Since the 2 Q of 2016
Phil Flynn, the senior market analyst at The Price Futures Group, noted a faster rebound in European liquefied natural gas demand than they anticipated in the throes of the pandemic shutdown. However, a pullback in U.S. production was deeper, which leads to a tighter outlook for the 2021 supply.
Meanwhile, Lumber futures have been on the front line during the year amidst strong demand for the commodity even as the lockdowns linked to the COVID-19 led to a significant slowdown in global economies. On Sept. 1, the prices hit a record high at $928.50 per 1,000 board feet.
Among the metals, silver SIZ20, 1.96% rallied by 26%, outperforming gold for the quarter. The yellow metal GCZ20, 0.59%, gained a much more modest 5.3% during the last three months.
However, Ross Norman, the chief executive officer of Metals Daily, spoke about silver’s loss for the month. It declined by 18% in September. According to Norman, silver tends to surprise, and it can be highly volatile.
Other industrials gained as well, with spot prices for rhodium skyrocketing by 73% for the quarter. Prices were at $13,900 an ounce on Sept. 30. However, the metal is not included in the commodities index or traded on the futures market.