Dow Jones Indexes Mid-Year Commodities Outlook Media Summary

Published on Wednesday, 21 July 2010 10:44 Written by TradersHuddle Staff

CHICAGO, July 21, 2010 (GLOBE NEWSWIRE) -- The Dow Jones-UBS Commodity Index is down 9.66% so far this year. In terms of sectors, the Dow Jones-UBS Precious Metals Sub-index has the strongest year-to-date gain of 12.80%. Leading commodity analysts provided their market outlook for the remainder of 2010 this morning at the ninth annual Dow Jones Indexes Mid-Year Commodity Outlook.

Oil prices will eventually see a down-turn

"Oil has been a pawn in the economic recovery story and is being artificially supported by historic economic stimulus and economic puffery," said Phil Flynn, senior energy and general market analyst, PFG Best Research. "Because of that, oil prices are in a range that will eventually see a down-turn, most likely breaking into the $40 range," said Mr. Flynn. "Gasoline is back to $1.80 per gallon and Heating Oil is at $1.84 per gallon," he added.

Grains prices have held steady for now

"Grains and oilseed prices have been testing the low end of their projected ranges but have held steady for now," said Jack Scoville," vice president, Price Futures Group. "Right now, we are in the process of establishing low pricing areas that might hold for many years to come," he added.

Sovereign debt issues to be a primary driver behind gold prices next year

"Sovereign debt issues and flight to safety bid to be primary drivers behind gold prices in 2011 as investors seek currency alternatives and chase returns," said Matthew J. Zeman, Commodity Futures Broker, La Salle Futures Group.  

The expectation that the allocation to broad-based commodities will continue to increase

"We are seeing increased allocations by institutional investors into broad-based commodities," said Jon Fraade, managing director, UBS Securities LLC.  "According to a recent FT/Towers Watson survey, approximately 2% of pension assets are allocated to this asset class and we expect that the allocation to this asset class and the sophistication related to this allocation will continue to increase," he added.

The Dow Jones-UBS Commodity Index, a diversified and highly liquid benchmark for the commodities markets, is composed of futures contracts on physical commodities and was introduced in 1998. The Dow Jones-UBS Commodity Index series consists of the Dow Jones-UBS Commodity Index comprising 19 commodities, nine sector subindexes and 28 single commodity subindexes for aluminum, Brent crude, cocoa, coffee, copper, corn, cotton, crude oil, feeder cattle, gas oil, gold, heating oil, lead, lean hogs, live cattle, natural gas, nickel, orange juice, platinum, silver, soybeans, soybean meal, soybean oil, sugar, tin, unleaded gasoline, wheat and zinc.

For more information please visit www.djindexes.com.

Journalists may e-mail questions regarding this press release to This e-mail address is being protected from spambots. You need JavaScript enabled to view it. .

Note to Editors:

About Dow Jones Indexes

Dow Jones Indexes (www.djindexes.com) is a leading full-service index provider that develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products. Best-known for the Dow Jones Industrial Average, Dow Jones Indexes offers more than 130,000 equity indexes as well as fixed-income and alternative indexes, including measures of hedge funds, commodities and real estate. Dow Jones Indexes employs clear, unbiased and systematic methodologies that are fully integrated within index families. Dow Jones Indexes is the marketing name for CME Group Index Services LLC, a joint venture company which is owned 90 percent by CME Group Inc. (www.cmegroup.com) and 10 percent by Dow Jones & Company, Inc. (www.dowjones.com), a News Corporation company (Nasdaq:NWS) (Nasdaq:NWSA) (ASX:NWS) (ASX:NWSLV) (www.newscorp.com).

The Dow Jones Indexes logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1289

"Dow Jones^®", "Dow Jones Indexes", "Dow Jones-UBS Commodity Index" and all other index names listed above are service marks of Dow Jones Trademark Holdings LLC ("Dow Jones"), and have been licensed for use by CME Group Index Services LLC ("CME Indexes"). Investment products based on the Dow Jones-UBS Commodity Index are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of Dow Jones, CME Indexes and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the Dow Jones-UBS Commodity Index does not in any way reflect an opinion of Dow Jones, CME Indexes or any of their respective affiliates on the investment merits of such company. None of Dow Jones, CME Indexes or any of their respective affiliates is providing investment advice in connection with these indexes.

CONTACT:  Dow Jones Indexes press offices:
          New York:
            +1-212-597-5720
          Frankfurt:
            +49-69-29725-290
          Hong Kong:
            +852-800-969-336
          Singapore:
            +65-6-4154-299