Cohen & Steers: Commodities to rise 17% by end of 2017

Bullish on market fundamentals

Cohen & Steers has said it expects the commodities market to have "largely" rebalanced by the second half of 2017, as a recovery in supply-demand fundamentals drives an estimated 17% total return for investors.

Based on the commodity universe's current position in the recovery cycle, the company said it expects spot prices to rise by approximately 25% in the market's rebalancing phase, which translates to a 21% annualised spot return in its year-end 2017 recovery scenario. After factoring in roll yield and return on collateral, the company said this return will result in a 17% total return for investors. In its overview for the market, the company said its analysis suggests a rebalancing of supply and demand is currently gaining momentum across all commodity sectors, forming the basis for st...