Weak but generalized signs of commodity price increases
An overview of current trends in the commodity landscape
Published by Giulio Corazza. .Energy Ferrous Metals Food Non Ferrous Metals Commodities Financial Week
On the commodity price front this week, the PricePedia indexes report a general increase, with the exception of the crop food index, which reports a decrease.
The following graph shows the PricePedia financial indexes of energy product prices. Both indexes are registering an increase this week.
On Sunday, OPEC+ members will meet to decide on production policy for next year. The choice of output will be decisive and will affect future oil price levels.
PricePedia financial indexes of energy prices in Europe and the U.S.
The heatmap below provides an overview of energy product price trends. It shows the sharp increase in the price of European gas, while the price of U.S. gas is decreasing.
According to EIG data, European gas stocks have started to decline since mid-November, and in recent days we have seen sharp reductions in stock levels. The arrival of the first cold winter weather and increased gas consumption has certainly helped support the price level in Europe.
Heatmap of energy products prices
The following graph shows the PricePedia financial indexes of ferrous and nonferrous metals prices. This week both indexes show an increase.
The recent revisiting of China's zero-covid policy has been the main determinant to the support of the metal price level.
PricePedia Financial indexes of ferrous and nonferrous metals
The heatmap below provides an overview of ferrous metal price trends. There is a marked increase in the prices of iron ore China and steel scrap Turkey.
Heatmap of of ferrous metals prices
NON FERROUS METALS
The heatmap below provides an overview of nonferrous metals price trends. All major metals recorded weekly increases of more than 2 percent, indicating the existence of generalized determinants supporting prices.
HeatMap of non-ferrous metal prices
The following graph shows the PricePedia financial indexes of food prices. While the tropical food index shows increases, in line with the prices of other product families, the index for crop products continues its downward trend.
PricePedia Financial Indexes of food products prices
FOODS FROM CROP
The heatmap below provides an overview of the trend in crop food prices.
The sharp reduction in prices of all grains is noted.
Wheat prices, in particular, have fallen in less than two months by 100 euros/ton, returning close to pre-invasion levels of Ukraine by Russia.
Despite Russia's attempts to use fears of a global food crisis to its advantage, the wheat signed last July 22 in Istanbul allowed Ukraine to export millions of tons of grains and oilseeds and Russia to export fertilizer, leading to a sharp reduction in world agricultural prices.