Commodity prices on world markets have mostly fallen this year, with gas, electricity, nickel, corn and wheat becoming cheaper by tens of percent. On the contrary, the price of gold, sugar or cocoa rose significantly. The Bloomberg Commodity Index is down 8.5 percent since the beginning of the year.
Unsteady development
“Developments on the commodity markets have been wobbly in recent weeks. However, in the end, the decline prevailed, which is increasing commodity losses this year,” XTB analyst Jiří Tyleček told ČTK. “In November, the prices of energy, nickel and sugar decreased the most. On the contrary, the prices of coffee and silver rose the most. Since the beginning of the year, energy, nickel and corn have lost the most, while sugar and coffee recorded the biggest increase,” he added.
The price of oil has seen significant fluctuations this year. The OPEC+ group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, has cut production several times, but demand growth has fallen short of expectations. Even the crisis in the Middle East did not lead to a long-term higher price level. The price of Brent oil has thus lost 5.6 percent since the beginning of the year, while the American WTI light oil has lost about five percent.
Gas and others
The prices of other energy commodities are also falling. The price of the annual gas contract in the Netherlands, which determines the price development for end customers, has so far shown a decrease of 55 percent this year. The price of electricity on the Leipzig stock exchange for delivery next year is then 59 percent lower. The price of coal in Rotterdam for delivery this year has lost 28 percent since the beginning of the year.
In the group of industrial metals, nickel shows the highest losses. Its price is 44 percent lower this year. Aluminum became cheaper by 7.9 percent, on the other hand, copper benefited in recent weeks and the price of this metal has increased by 1.1 percent since the beginning of the year. Precious metals have even higher gains, benefiting from the expected drop in interest rates as well as increased tensions in the Middle East.
source: ČTK
