You're watching...
Jodie Gunzberg, S&P director of Commodity Indices, on some of the key factors impacting commodities in 2013.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
On to something completely different the talking about the five.
Commodities are pulling back as -- excitement over the fiscal cliff deal stops to faint but.
-- drive the a commodity market for the rest of the year it would joining me now is Joseph becomes but director of commodity indices -- S&P Dow Jones.
Indices and -- thank you very much for being here.
-- what are some of the key stories that you see for commodities this year.
-- a lot of eyes on China and the most economically sensitive commodity is our.
The industrial metals as well as the energy so in the Dow Jones UBS and the S&P GS CI.
The S&P GS CI is production waited a heavy energy waiting about 70% where you can WTI.
Is the main commodity there on quickly being overtaken by Brent crude oil.
And in Dow Jones UBS copper.
So okay so -- it's China is showing signs again having this huge economic engine revving up again and -- impacts of broad array of commodities doesn't it you mentioned some bad but.
If China does not.
Because it's all very.
Vague as to exactly what's going on in China us could -- have a negative impact as well we don't see the kind of numbers out of the back country that we practicing.
It could the oil demand estimates for China coming out.
Are about 300000.
Barrels a day incrementally and money thirteen which only offsets the decline from US and Europe so.
Many are watching the emerging markets Latin America Africa Middle East where collectively they're looking at 800000.
Barrels a day being and it.
Whereas the non OPEC supplies only 700000 barrels of those areas will be driving demand do you think tests what does that do to the price of below.
While the price of oil though newsroom by supply and demand -- of course it's.
The demand vs the expectation.
And we'll see some of that might depend on the natural gas situation.
If you -- right the oversupply of the natural gas from the fracking technology.
Has.
To -- been able to become our placement the US.
Last year.
Had converted from being a major importer can now -- net exporter yet more people perhaps changing from -- to natural gas that I could have an impact as well.
Gold everyone has an opinion on gold -- what you -- for the gold this year fall.
-- much depends on the quantitative easing and the quantitative easing has been a mixed story for commodity is.
People are concerned about inflation from.
The QE during the QE1.
The economy was heating up a little bit and metals and energy faired well QE2.
Wasn't as good commodities were mixed QE3 should be strong but.
If the Euro zone crisis continues and there's.
Low interest rates weakening dollar -- that could be good for gold and it might be the only commodity -- a farewell.
Centrist thing yet again -- Judy is that there's been a race to debase all over the world has been going on as you just outlined but we haven't seen very reaction in build the perhaps we could have hasn't gone as high as I thought it couldn't.
Why is that.
Again it all comes back down for the supply and the demand -- -- often safe haven.
Call because inflation has been an issue right and and inflation has not ever historically been that.
An explanation.
In the price of gold whereas for some other metals like copper the returns are explained by inflation so generally.
Why baskets of commodities in the Dow Jones UBS at some PGA CI that have the same food and energy and CPI -- -- you move with inflation whereas.
Metals individually may or may not so gold has not whereas copper hats.
Interesting stuff to it becomes but it got -- Dow Jones indices thank you so much for being did you thank you -- it.
