Commodities were higher in April, largely driven by fundamental factors within the Energy Sector, according to Credit Suisse Asset Management.  

The Bloomberg Commodity Index Total Return performance was positive for the month, with 14 out of 22 Index constituents trading higher.

Credit Suisse Asset Management observed the following: 

• Energy was the best performing sector, up 13.84%, with all constituents posting gains. Crude oil and petroleum products led the sector higher amid reports of declining US production and inventories, while demand continued to be strong. 
• Industrial Metals increased 7.81%, led by Zinc. Positive new home and construction data was reported out of China, increasing expectations for a recovery in base metals demand. 
• Livestock ended the period 1.73% higher, led by Lean Hogs. Exports were up sharply for the year through April 23rd compared to the same period last year. 
• Precious Metals was the worst performing sector, down 0.84%. Silver led the sector lower as investment demand continued to be weak. While U.S. economic data was mixed, expectations were that it was still good enough for the Federal Reserve to consider tightening monetary policy sooner rather than later. 
• Agriculture decreased 0.52%, led lower by Wheat. Forecasts of continued rainfall in the U.S. Southern Plains alleviated expectations of damaged crops caused by unfavorable dry weather conditions earlier in the year, and increased yield expectations.

Nelson Louie, Global Head of Commodities for Credit Suisse Asset Management, said: "April was generally a strong month for Commodities, with the main focus on the Energy sector, as the sharp drop in rig counts and cutbacks in capital expenditures may start to provide support to the market. In addition, changes in Cabinet members in Saudi Arabia and geopolitical concerns in the Middle Eastincreased uncertainty over the region's future oil production. In the US, as the summer growing season approaches, weather forecasts will increasingly play a bigger role in driving returns in the Agriculture sector. "

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, "At a macroeconomic level, signs of manufacturing activity in China were mixed, with PMI data hovering between expansion and contraction. However, the latest data exceeded expectations, suggesting government stimulus efforts may be working. The latest European PMI data indicated stronger levels of expansion, which may increase demand expectations for base metals. Uncertainty remains high regarding the impacts of divergent central bank policy, leading to increased levels of volatility across multiple asset classes. These risks, along with the elevated potential of inflation overshooting expectations, highlight the importance of having a diversified portfolio."