Commodities Slide as Metals and Agriculture Face Pressure

Global commodity markets ended last week on a downward trend, with metals and agricultural products facing significant declines. Gold dropped 3.68%, silver fell 6.77%, and copper eased 2.58%. The stronger U.S. dollar and elevated Treasury yields weighed heavily on precious metals, while weaker industrial sentiment and concerns over Chinese demand impacted base metals. Despite the broader decline, copper received some attention due to anticipated supply constraints, with China’s refined copper output expected to slow sharply amid concentrate shortages and planned smelter maintenance.

Energy markets showed mixed results, with Light Sweet Crude Oil gaining 0.81% while natural gas declined 5.46%. Oil markets remained focused on developments in the Middle East, particularly the Strait of Hormuz, where changing shipping conditions and supply concerns influenced price direction. However, expectations of emergency oil stock releases and recovering regional exports helped moderate some of the supply worries.

In the agricultural sector, soybean prices declined 3.09%, corn fell 5.77%, while US Sugar No. 11 advanced 7.73%. Key drivers across these markets included crop harvest progress, weather conditions, export activity, inventories, and global demand. Wheat managed to hold crucial support levels, providing some stability in an otherwise volatile week for commodities.