Commodities traded higher in August with impressive gains in the crude, precious metals and grain sector. In general investor sentiment improved in August as US economic data surprised to the upside and the European debt crisis calmed.
Crude oil rose more than 7% and heating oil climbed nearly 10%. Fears of productions shutdowns due to Hurricane Isaac in the Gulf of Mexico, a fire at Venezuela’s biggest refinery and a more positive technical outlook provided a favorable environment for energies.
US corn and soybean crops again were generally in positive territory after a severe drought hit most of the prime Midwest growing areas. The soy complex added to its gains from June and July and rose 7% on average. After a price jump of more than 20% in July corn traded sideways, staying near record highs. Soybean meal has increased 73% so far this year.