Traders, brokers and clerks on the trading floor of the open outcry pit at the London Metal Exchange in London, U.K., on Monday, Feb. 28, 2022.
Chris J. Ratcliffe | Bloomberg | Getty Images
Commodities have broadly pulled back from their recent peaks, but Wall Street analysts say the fundamentals are pointing to another rally by year-end.
As of Friday, the UBS CMCI (Constant Maturity Commodity Index) had fallen by around 11% from its peak in early June, while performance in July was flat, but was still up 16% year-to-date.
In a research note Friday, UBS Global Wealth Management strategists said the supply-side constraints that underpinned the surge in commodity prices in the first half of the year had taken a backseat to the deteriorating outlook for global economic growth, a strengthening U.S. dollar and China’s housing predicament.
Although commodity prices could fall further in the event of a deep recession for the global economy, UBS…
