Commodities climbed to the highest since December as extreme weather fueled supply concerns for crops and energy at a time of rising imports by China. Goldman Sachs Group Inc. says this year’s gains will be short-lived.
The Standard & Poor’s GSCI Spot Index of 24 commodities gained 0.2 percent to settle at 636.22 yesterday, after touching 639.93, the highest since Dec. 30. Coffee led gains, and cocoa reached the highest since 2011. Gold capped the longest rally since June 2012.
The driest January since 1954 seared crops in Brazil, the top sugar and coffee grower, while freezing weather across the U.S. damaged winter wheat and cut energy stockpiles as heating demand rose. China’s imports surged 10 percent in January, driven by crude oil, iron ore and record shipments of copper, customs data show. Goldman maintained its “underweight’ 12-month recommendation on commodities, as raw materials from gold to copper will see more impact from turmoil in emerging markets, the bank said yesterday.
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