Kettera Strategies' Location-Based Analysis - February 2021 Version
Top-Performing Commodities Sectors Boost Systematic Trend Programs
In the dynamic world of commodities trading, February saw a surge in performance for several sectors, with precious metals, energy, agricultural commodities, and grain markets leading the charge.
Precious Metals Shine
Platinum and gold have been the standout performers within the precious metals sector. Platinum futures have experienced a staggering 40% increase since January 2025, primarily driven by demand in renewable energy sectors like hydrogen technology and strong purchasing by China. This surge has pushed platinum trading volume to all-time highs in June 2025, making it a highly liquid and volatile sector well-suited for trend following strategies.
Agricultural Commodities Gain Ground
Fertilizers, particularly potash and urea, have also seen significant price appreciation. Potash prices have risen around 25% year-over-year, buoyed by strong demand from India and China and ongoing supply restrictions. Urea futures contracts, such as the new 10-ton fiscally settled contracts on the U.S. Gulf, have offered more accessible and precise hedging tools, making them attractive for systematic strategies targeting input cost volatility.
Energy Remains Strong
LNG gas markets continue to be a strong investment choice due to global supply-demand dynamics. Energy-related commodity stocks, like GrafTech International, Targa Resources, and Antero Resources, have shown notable year-to-date stock performance gains, reflecting broader energy commodity strength.
Grains Maintain Momentum
Grain commodities also feature among the top commodity investment choices in 2025, driven by global population growth and changing dietary patterns.
Successful Strategies
Systematic Trend Following strategies have excelled in these volatile sectors, particularly where liquidity and momentum are highest. The introduction of smaller futures contracts, such as the 10-ton urea U.S. Gulf futures, has improved capital efficiency and accessibility, allowing systematic programs to fine-tune exposures and improve risk management in agriculture commodities.
Investing via funds like Fidelity's Global Commodity Stock Fund, which cover top-performing stocks across metals, energy, and agriculture, has also been fruitful. Individual stocks within these sectors have gained between roughly 15% to 70% over the year, aligning with strong trends in their underlying commodities.
It's essential to note that the views expressed in this article are not necessarily the views of AlphaWeek or its publisher, The Sortino Group. The style baskets presented in this letter were created by Kettera for research purposes and are not investible products or index products.
This article is a guest article under Hedge Funds - Managed Futures. The benchmark sources for this letter include the Hedge Fund Intelligence Global Macro Index, HFI Currency Index, Societe Generale Trend Index, SG CTA Index, and Societe Generale Short-term Traders Index. Other indices mentioned in the article, such as the Barclay Crypto Traders Index, Eurekahedge Long Short Equities Hedge Fund Index, Eurekahedge-Mizuho Multi-Strategy Index, CBOE Eurekahedge Relative Value Volatility Hedge Fund Index, S&P GSCI Metals & Energy Index, S&P GSCI Ag Commodities Index, Eurekahedge AI Hedge Fund Index, BarclayHedge Currency Traders Index, and BTOP FX Traders Index, are also part of the broader commodities trading landscape.
In conclusion, the recent success of systematic trend following strategies can be attributed to the strong performance of precious metals (especially platinum and gold), fertilizers (potash and urea), energy (including LNG and gas), and grains. The availability of new, capital-efficient futures contracts has further enhanced strategy execution in these sectors.
In this dynamic commodities market, investing in precious metals, such as platinum and gold, has been lucrative due to their surge in value, primarily driven by demand in renewable energy sectors and strong purchasing by China. On the other hand, technology-related investments, like hydrogen technology, have contributed to the significant rise in platinum futures. Furthermore, sports enthusiasts might find interest in the performance of energy-related stocks, such as GrafTech International, Targa Resources, and Antero Resources, which have shown remarkable gains due to broader energy commodity strength.
