Commodity Inflows Estimated by Citigroup at $20.6 Billion

Commodities had net investment inflows of $20.6 billion last year through Dec. 25, compared with net outflows of $12.3 billion for all of 2011, Citigroup Inc. estimated.

Energy-related investments were $9 billion followed by precious metals at $6.6 billion and agriculture at $1.2 billion, Aakash Doshi, a strategist at Citigroup Global Markets, said in a report dated today.

Retail and institutional assets under management climbed 1.4 percent in November to about $335 billion, below the peak of $380 billion in April 2011, according to the report.

Changes in the weightings of commodities in the Standard & Poor’s GSCI gauge and Dow Jones-UBS index will mean about $5 billion of net inflows for brent oil over five days starting Jan. 8 and $2.2 billion for soybean meal, Doshi said. Estimated outflows will be $460 million for zinc, $3.2 billion for soybeans traded on the Chicago Board of Trade and $3.5 billion for Chicago wheat, he said.

“While some of these net flow figures might appear large on a notional basis, given the breadth and size of certain contract markets like natural gas or crude oil, and the fact rebalancing takes place over five trading sessions, the impacts might be more muted than at first glance,” he said by e-mail.

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