Commodity Prices Mixed Amid Inflation and Geopolitical Concerns
Commodity markets saw mixed movements last week as inflation concerns persisted due to US President Donald Trump’s tariff policies and geopolitical developments, particularly the ongoing efforts for peace between Russia and Ukraine, CE Report quotes Anadolu Agency
Chicago Fed President Austan Goolsbee highlighted progress in reducing inflation from its 40-year high in 2022 but noted that uncertainty surrounding Trump’s tariffs could impact the economy. Chinese Commerce Minister Wang Wentao warned that US tariffs would strain US-China relations.
Trump expressed hopes for a ceasefire between Russia and Ukraine, urging leaders Vladimir Putin and Volodymyr Zelenskyy to negotiate.
Gold Hits New Record Amid Market Uncertainty
Gold surged 1.7% to a record $2,954.89 per ounce, driven by tariff concerns and geopolitical risks. Silver rose 1.1%, palladium 0.5%, while platinum fell 1.1%. Copper dropped 2.1% as Citigroup lowered its price forecast. Meanwhile, aluminum, nickel, zinc, and lead posted gains.
Chinese defense giant Norinco Group signaled plans to revise its bid for Congolese miner Chemaf’s copper and cobalt assets. Additionally, Chile’s Codelco and UK-based Anglo American signed a copper mining partnership in central Chile.
Oil Falls, Natural Gas Soars on Weather Forecasts
Brent crude oil dipped 0.7% to $73.9 per barrel after a weaker-than-expected rise in US crude stocks. US production increased by 300,000 barrels per day, heightening concerns over global oversupply. In contrast, natural gas prices soared 12.6% due to an anticipated Arctic cold wave affecting North America in early March.
Agricultural Markets React to Policy Changes
China released its 2025 rural revitalization plan to boost grain production incentives, while the US Department of Agriculture (USDA) announced the release of $20 million in previously frozen farmer funds.
Brazil maintained its biodiesel blend ratio at 14%, boosting soybean prices by 0.4%. Rice fell 3% due to inadequate Thai government support, sparking farmer protests. Corn climbed 0.4%, while wheat dropped 1.6%. Cotton and coffee declined 1.3% and 4.5%, respectively, while sugar gained 3.1% and cocoa plunged 11.5%.
