During the month of April, the top 3 performing sectors were: softs (+14.58%), grains (+12.33%), and energies (+11.58%). The bottom 3 sectors were: livestock (-0.93%), interest rates (0.59%) and currencies (1.58%). Overall, all markets were green across the board. The Federal Reserve (FOMC) met on April 27th-28th to discuss monetary policy once again and their overall outlook of the economy remained consistent with their March goals – promoting maximum employment and price stability.
Looking into a couple of commodity markets, softs outperformed a majority of the market as lumber continued to rally to all-time highs (+48.88%). A rally that is largely a result of the pandemic and unprecedented demand. According to The National Association of Home Builders, rising lumber prices have added nearly $36,000 to the average price of a new single-family home. As for the grain market, investors saw a major price increase in corn (+31.15%), soybean oil (+17.95%), and wheat (18.84%), reaching prices not seen in eight years. Such price increases come as a result of sustained demand and a prolonged planting season in the midwest.
For month to date and year to date CTA rankings, please remember to visit our CTA Database. If you do not have a login and wish to register for free, please click here.
Sector & Index Performance Consists of the following:
Grains: Corn, Soybean Meal, Oats, Soybeans, Soybean Oil, Wheat, Rough Rice. Livestock: Live Cattle, Feeder Cattle, Lean Hogs. Softs: Cocoa, Orange Juice, Sugar No. 11, Random Length Lumber, Coffee, Cotton No. 2. Currencies: Euro Currency, Japanese Yen, British Pound, Canadian Dollar, Swiss Franc, US Dollar, Brazilian Real, Mexican Peso, Australian dollar. Indices: S&P 500, Mini Dow, Mini Nasdaq. Interest Rates: 30-year t-bond, 10-year t-note, 5-year t-note, Eurodollars. Metals: Gold, Silver, Copper, Platinum, Palladium. Energy: Crude Oil, Reformulated Gas, Natural Gas, Heating Oil, Denatured Fuel Ethanol. S&P 500 Index – data collected from investing.com. S&P GSCI Index – data collected from us.spindices.com/indices/commodities/sp-gsci.