Most commodities fell in May, with the Dow Jones-UBS Commodity Index Total Return down by 5.06%. Similar issues dragged on the market this year as last: the debt crisis in the eurozone and weak economic growth worldwide, with record flooding in the U.S. a new factor. Of the 19 commodities in the index, 16 were lower, with precious metals the weakest of the lot.
Other affected sectors within the index included energy, with flooding of the Mississippi River threatening to disrupt U.S. distribution channels, and agriculture, suffering from a negative USDA world agricultural report; livestock also fell on increased inventories.
Last May saw similar results, according to Nelson Louie, global head of commodities at Credit Suisse Asset Management. He said in a statement, "While commodities markets experienced a pullback during the month of May, it is worth noting that the timing of this month's correction matches last year's decline, with the markets focusing on very similar issues—slowdowns in global economic growth and sovereign debt concerns in Europe."