Commodities Prices

The agricultural, base metal and precious metal subgroups led September’s price increase. Agricultural prices rose for the first time in seven months in September, as corn, soybeans and wheat all regained ground from their prior-month declines, and coffee and palm oil continued to climb to multi-month highs. Base metals rose on the back of stronger manufacturing conditions in China and the Fed’s rate cut. Precious metals added further impetus, rising at the fastest pace among commodities: The Fed’s interest rate cut boosted investor demand for silver, platinum and gold, and the impending U.S. government shutdown boosted safe-haven demand. That said, the energy complex mildly declined due to falling WTI and gasoline prices, which were dragged down by OPEC+ output hikes and the end of the summer travel season.

Commodities prices increased 1.5% month on month in September, following August’s 2.7% fall.