More than halfway through the third quarter, many of the biggest commodity ETFs in the United States are in sizable holes.
Kathy Kriskey, senior commodities ETF strategist at Invesco, said that oil supply is actually tight at the moment.
The commodities slump could be partially due to mechanical factors in the market, such as low trading volumes combined with large commodity trading advisors betting against the sector, Kriskey said.
"The price of corn has taken almost three full years from those 2022 spike highs to get back down.
And oil, one of the biggest weights in commodity indexes, could see stepped up supply in coming months.
Persons:
It's, Ryan Grabinski, Strategas, Kathy Kriskey, Kriskey, Sal Gilbertie, We're, Gilbertie, What's, Jerome Powell, Goldman Sachs, Morgan Stanley, Matijn, — CNBC's Michael Bloom
Organizations:
Strategy, United States Oil Fund, U.S ., Commodities, 4Q, DB Base Metals Fund
Locations:
United States, Ukraine, U.S, China