In December, prices for all commodities groups bar agriculture declined. Energy prices fell for the fourth time in five months, with the prospect of rising oil production and a more hawkish Fed disheartening traders in the oil market. The latter factor also boosted the U.S. dollar, which in turn weighed on the prices of most metals, especially gold and silver. In addition, paltry manufacturing activity in China, the Eurozone and the U.S. dented prices for base metals. On the flip side, agricultural prices increased for the fifth successive month, mainly due to surging demand for corn and rice. Moreover, coffee prices surged to a 20-year high, and cocoa traded at a new all-time high.
Commodities prices flatlined month on month in December, following November’s 1.3% fall.
This chart displays Brent Crude Oil (US$/bbl) from 2023 to 2024.