PDBC And Commodities At The End Of Q3 2024

seekingalpha10-09

Commodities showed mixed performance in Q3, with soft commodities leading gains and energy prices declining due to weak Chinese demand and seasonal factors.The Invesco Optimum Yield Diversified ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPDBC And Commodities At The End Of Q3 2024\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-09 01:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4725668-pdbc-and-commodities-at-the-end-of-q3-2024><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Commodities showed mixed performance in Q3, with soft commodities leading gains and energy prices declining due to weak Chinese demand and seasonal factors.The Invesco Optimum Yield Diversified ...</p>\n\n<a href=\"https://seekingalpha.com/article/4725668-pdbc-and-commodities-at-the-end-of-q3-2024\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PDBC","symbol_name":"Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF","start_time":0,"source_url":"https://seekingalpha.com/article/4725668-pdbc-and-commodities-at-the-end-of-q3-2024","article_id":"2474409766","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/142096634/image_142096634.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2474409766","pubTimestamp":1728408667,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Commodities showed mixed performance in Q3, with soft commodities leading gains and energy prices declining due to weak Chinese demand and seasonal factors.The Invesco Optimum Yield Diversified Commod","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"PDBC":"Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF"},"translate_title":"2024年第三季度末PDBC和大宗商品","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PDBC":0.9},"content_text":"Commodities showed mixed performance in Q3, with soft commodities leading gains and energy prices declining due to weak Chinese demand and seasonal factors.The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF underperformed due to its energy exposure, despite a bullish trend in commodities since 2020.Gold and frozen concentrated orange juice futures hit record highs in Q3, driven by adverse weather conditions and ongoing bullish trends.Increasing exposure to PDBC is recommended for Q4, considering potential energy price volatility, bullish commodity trends, trade barriers and favorable U.S. interest rates and dollar conditions.   Anthony BradshawCommodities feed, fuel and shelter people worldwide. In Q3, four of the six commodities sectors posted gains, while two declined. Soft commodities led the way on the upside, while precious metals, grains and base metals rallied. Energy was the worst-performing sector, while animal protein prices moved to the downside. The U.S. dollar index declined while bonds moved higher, traditionally bullish for commodity prices. However, results were mixed over the past three months, with the overall composite of 29 commodities traded on U.S. and U.K. exchanges posting a marginal gain. Meanwhile, the commodities composite was higher over the first nine months of 2024. The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF product (NASDAQ:PDBC) moved lower in Q3, reflecting losses in energy commodities. PDBC was lower over the first three quarters of this year because of its exposure to energy commodities. The commodities composite edged higher in Q3 and remained higher over the first nine months of 2024 - The results. The composite of 29 commodities trading on U.S. and U.K exchanges edged 0.25% higher in Q3 and was 10.30% higher over the first three quarters of 2024. Twenty-two commodities posted gains in Q3, with seven posting double-digit percentage price increases:   Q3 2024 Winners in Commodities (Various futures exchanges)Eighteen commodities moved lower, with seven posting double-digit percentage losses:   Q3 2024 Losers in Commodities (Various futures exchanges)Twenty-one commodities prices moved higher over the first three quarters, with 13 posting double-digit percentage gains.   Commodities posting gains over the first nine months of 2024 (Various futures exchanges)On Sept. 30, 19 commodities moved lower, with seven posting double-digit percentage declines:   Commodities posting losses over the first nine months of 2024 (Various futures exchanges) Soft commodities continue to lead the way on the upside In Q3, the soft commodities sector led the asset class on the upside with an 8.32% gain. Soft commodities were 36.23% higher at the end of September than the final prices in 2023. Arabica coffee led the sector higher in Q3 with an 18.04% gain. World sugar futures were 11.67% higher. Adverse weather conditions in Brazil, the world’s leading coffee and sugar producer and exporter, pushed prices higher. Cocoa prices edged only 0.09% lower, while cotton recovered by 5.44% in Q3. FCOJ moved 6.55% higher. Four of the five soft commodities posted gains over the first nine months of 2024, with cocoa leading the way with an 84.03% gain. Cocoa futures reached a record peak of over $12,000 per ton in Q2. FCOJ futures rose 52.56% over the first nine months, with Arabica coffee bean futures up 43.52% and sugar up 10.16% over the period. Cotton futures were down 9.12% over the first three quarters of this year.   Energy prices decline and lead on the downside Weak Chinese demand, seasonal weakness after the 2024 driving season, and the prospects for increased OPEC+ production sent traditional energy prices lower in Q3. Nearby NYMEX WTI and Brent crude oil futures on the Intercontinental Exchange fell between 16% and 17% for the quarter. Gasoline and heating oil prices fell and underperformed crude oil, pushing gasoline and distillate crack spreads lower. Chicago ethanol swaps dropped over 18.75%. Meanwhile, the volatile natural gas futures market rallied 12.38%, and Rotterdam coal prices rose 14.31% over the past three months. These energy commodities tend to rise as the winter heating season approaches. Over the first nine months, crude oil, oil products, crack spreads, and ethanol swaps declined from the 2023 closing prices, while natural gas and Rotterdam coal prices moved higher. New record highs in gold and FCOJ in Q3 In Q3, the spotlight was on gold and frozen concentrated orange juice futures, which rose to new record highs.   Monthly Chart of COMEX Gold Futures (CQG)The chart shows gold’s rise to $2,683.90 on the continuous COMEX futures contract. December gold futures reached a $2,708.70 high. Gold’s bullish trend, which began at the 1999 low, continued to power higher in Q3. Meanwhile, adverse weather conditions in Brazil pushed Arabica coffee and world sugar futures prices higher and sent orange prices to record highs.   Monthly Chart of ICE Frozen Concentrated Orange Juice Futures (CQG)The chart shows the explosive move in frozen concentrated orange juice futures to a record $5.89 per pound high in September 2024 before correcting.   PDBC is a no K-1 ETF that tracks a portfolio of commodities - The reasons to increase exposure for Q4 on a scale-down basis for 2025 The top holdings of the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF include:   Top Holdings of the PDBC ETF Product (invesco.com)At $13.81 per share, PDBC had $4.74 billion in assets under management. PDBC trades an average of over 3.44 million shares daily and charges around a 0.60% management fee. PDBC’s energy exposure caused the ETF to underperform the commodities composite in Q3 and over the first three quarters of 2024.   Monthly Chart of the PDBC ETF Product (Barchart)The chart shows a 4.41% decline from $14.05 at the end of Q2 to $13.43 per share at the end of Q3. PDBC closed 2023 at $13.30 per share and was only 0.98% higher over the first three quarters of 2024. The commodities composite was 0.25% higher in Q3 and 10.3% higher over the first three quarters of this year. The following factors favor increasing exposure to PDBC for Q4:  Energy prices could become highly volatile given the war in the Middle East and the uncertainty of U.S. energy policy after the Nov. 5 election. Commodities have been trending higher since the 2020 pandemic-inspired bottoms. The trend remained bullish at the end of Q3 2024. The bifurcation of the world’s nuclear powers creates trade barriers that can distort commodity prices, pushing them higher. Falling U.S. interest rates and a weak U.S. dollar are typically bullish for commodity prices.   As the markets head into 2024’s final quarter and beyond, I favor long exposure to a diversified portfolio of commodities.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"analysis","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2474409766"}