Almost all commodities from energy to agriculture see increases
Strong raises were seen in the global commodity market last week as concerns about the demand decreased.
Developments in global markets, climate-related factors and production concerns played an important role in the upward trend in commodity markets last week.
After lower-than-expected inflation figures in the US, markets forecasted that the Fed will end its hawkish policies soon.
This situation also decreased concerns that the US economy would enter a recession.
The annual inflation was at 3% in the US in June, and the monthly one stood at 0.2%.
Analysts stressed that the Chinese government’s steps to support the economy increased the risk appetite.
The gold’s upward trend continued for the second consecutive week.
The price of gold was up by 1.6%, silver by 8.1%, and platinum by 6.9% last week.
Copper increased by 3.9%, lead by 2.6%, aluminum by 5.5%,nickel by 4.2%, and zinc by 2.2%.
Record-high temperatures in China caused the possibility of cutting energy, bringing concerns that base metal production may decline.
Energy
The price of Brent oil increased by 1.8%, and natural gas dropped by 1.7%.
International Energy Agency stated that the oil supply may not meet the demand in the future.
On the supply side, the cuts in oil production by Saudi Arabia and Russia in August and then the news that supply would fall behind demand in the second half of the year accelerated the upward trend of prices.
While many oilfields in Libya were shut down due to protests, Shell suspended crude delivery at Nigeria’s Forcados terminal due to a pipeline leak.
Recent developments and statements last week that Saudi Arabia and Russia will cut their production indicate that production will be tighter in the oil markets in the coming months.
Agriculture
Agricultural commodities saw strong price increases last week.
Wheat rose by 1.6%, corn by 4%, soybean by 4.2%, and rice by 3.2%.
Cotton’s price increased by 0.2%, sugar by 3.2%, cocoa by 1%, while coffee dropped by 0.8%.