Market and Investors in Commodities News Today

azocommodity.com - Commodity markets rallied in September as investor sentiment turned positive amidst the prospects of further rounds of quantitative easing. A noticeable trend shift is taking place, suggesting fundamental supply and demand dynamics will take priority over macroeconomic indicators in determining prices over the long term.

Nelson Louie, Global Head of Commodities at Credit Suisse Asset Management said, "As reflected in Fed Chairman Ben Bernanke's recent comments, subduing deflation will likely continue to be a top priority of the Federal Reserve over the near term, and as more quantitative easing takes place, we expect commodities prices will continue to rise. While macroeconomic factors have driven returns over recent history, we expect fundamental factors to drive prices moving forward over the longer term."

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy added, "Historically, Commodities prices have tended to perform best during periods of higher than expected inflation. Today we're seeing some major developed countries actively discussing or engaging in various fiscal and monetary measures, including devaluing currencies, in order to keep their exports globally competitive, while fiscal policy worldwide remains accommodative. As a result, investors may continue to seek out investments that should retain their value in spite of inflation. This has benefited commodities generally and precious metals in particular."

The Dow Jones-UBS Commodity Index Total Return rose 7.26% in September, bringing the year-to-date performance to 0.90%. Overall, 16 of the 19 index constituents increased in value. Agriculture commodities were pushed higher by severe weather conditions and supply concerns ? seen most prevalently in Sugar and Cotton. Economically sensitive commodities, especially those in the industrial metals complex, surged, led higher by Aluminum and Nickel, up 13.83% and 12.97%, respectively. The Precious Metals sector, the best performing group year-to-date, had another positive month. As economic uncertainty prevailed for the majority of September, Gold and Silver rallied. Gold returned 4.76%, lead higher by Central Banks changing course to become net purchasers of the precious metal. Silver rose 12.31% for the month.

Most Asian stocks fell as Samsung Electronics Co. reported profit that missed analyst estimates, overshadowing gains by commodity-related companies after oil and metal prices rose.

Samsung, Asia?s largest maker of semiconductors, fell 2.7 percent in Seoul, dragging down chipmakers. Canon Inc., a camera maker that gets more than a fourth of its sales in the Americas, slumped 2 percent in Tokyo after U.S. companies unexpectedly cut jobs last month. BHP Billiton Ltd., the world?s biggest mining company, gained 0.9 percent in Sydney. STX Pan Ocean Co., South Korea?s No. 1 bulk carrier, surged 10 percent in Seoul after shipping rates advanced.

About five shares declined for every four that advanced in the MSCI Asia Pacific Index, which was little changed at 130.04 as of 2 p.m. in Tokyo. The gauge earlier rose to its highest level since August 2008, before the bankruptcy of Lehman Brothers Holdings Inc.

?Sentiment is fairly mixed,? said Shane Oliver, Sydney- based head of investment strategy at AMP Capital Investors Ltd., which manages $85 billion. ?Markets have priced in continuing economic growth and continuing strength in profits, so whenever something negative comes along that questions this, like Samsung, it causes a bit of a setback.?