Wednesday, April 23, 2008

Commodities Reach New Highs, Reuters/Jefferies CRB Index Highest Since 1956

Commodities surged again today, as 18 of 19 raw materials in the Reuters/Jefferies CRB Index climbed. The index itself reached the highest levels since September of 1956, as it rose by 1.8 percent to 422.91. The CRB Index has enjoyed a gain of 18 percent so far in 2008.

The only commodity in the CRB Index not rising was natural gas.

Among records reached today were oil, which went as high as $119.90 a barrel, while gasoline futures, for the first time, passed $3 a gallon.

The euro also broke a record against the greenback, rising to $1.6019 on Tuesday.

"The weaker dollar was the key driver for commodities across the board today," said Evan Smith, who helps manage $1.5 billion at US Global Investors in San Antonio. "The bigger theme is that there is robust global commodity demand."

According to Citigroup, worldwide investments in commodities grew by over 20 percent in the first quarter, reaching $400 billion.

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