SG Morning Highlights | Commodities Could Pull Back More This Year as Supply Outpaces Demand Growth

Advancers / Decliners is 71 to 68, with 85.18 million securities worth S$197.19 million changing hands.

After a stellar year in 2022, commodities could likely book a weaker performance this year on the back of factors such as the strengthening US dollar, greater stability in supply and weakening demand.

Commodities were the best performing asset class in 2022, rewarding investors with solid returns across the board. This was driven by renewed demand amid the gradual easing of Covid-19 restrictions across different countries.

But on a year-to-date basis, several commodities have booked declines. Sabrin Chowdhury, head of commodities analysis at Fitch Solutions unit BMI, said commodities "now bag the title of the worst performer in 2023 thus far".