Commodity markets influenced by supply tensions and interest rate expectations

Energy markets remain supported by concerns over an escalation in the Persian Gulf, which would increase the risks to commodity flows through the region's trade routes.
This scenario fuels uncertainty over the outlook for energy supply and keeps pressure on oil product and natural gas prices high. In particular, natural gas prices have risen sharply in both Asia and Europe, driven by growing international competition for LNG supplies ahead of the winter season.

Tensions in energy markets are also affecting precious metals, whose prices continue to decline amid growing inflation concerns. Higher energy prices could intensify consumer price pressures, strengthening expectations of tighter monetary policy and weighing on precious metals in an environment of high interest rates.
Ahead of next week's meetings, markets expect both the Fed and the ECB to leave interest rates unchanged. However, unless the inflation outlook improves, another rate hike in December appears likely for both central banks, also in light of persistent energy market tensions. Tighter financial conditions, driven by rising bond yields, could nevertheless help curb demand and ease price pressures, reducing the need for further rate hikes.

Among industrial metals, ferrous metals remain relatively stable, while non-ferrous metals recover slightly following last week's decline. The rebound is mainly driven by nickel, whose prices on the London Metal Exchange (LME) have approached $16,000 per tonne following the announcement of new production cuts in Indonesia aimed at supporting prices.
Meanwhile, the decline in cobalt prices has resumed, mainly reflecting weak Chinese demand and increased exports from the Democratic Republic of the Congo.

In the food commodities sector, tropical products show mixed trends, while cereal and edible oil prices are falling.
The tropical commodities sector continues to see rising Arabica coffee prices and falling sugar prices, following India's decision to suspend purchases of sugar-based ethanol by state-owned fuel distributors from November 1. The measure eases concerns over global supply, although sugar prices remain more than 30% above their levels at the beginning of the year, supported by climate risks associated with El Niño.

ENERGY

The PricePedia financial index of energy products continues its upward trend, driven by intensifying tensions in the Middle East.

PricePedia Financial Index of Energy Prices in US Dollars

The energy heatmap shows rising oil and European and Asian natural gas prices, while US natural gas prices are declining.

Heatmap of Energy Prices in Euros

PRECIOUS METALS

The financial index of precious metals shows an increasingly pronounced decline in prices.

PricePedia Financial Index of Precious Metals Prices in US Dollars

The precious metals heatmap shows a decline in palladium prices.

Heatmap of Precious Metals Prices in Euros

FERROUS METALS

Ferrous metals indices show daily fluctuations that do not alter the underlying trend.

PricePedia Financial Indices of Ferrous Metals Prices in US Dollars

INDUSTRIAL NON-FERROUS METALS

Non-ferrous metals indices are rising again following last week's decline.

PricePedia Financial Indices of Industrial Non-Ferrous Metals Prices in US Dollars

The non-ferrous metals heatmap shows rising nickel prices and a significant decline in cobalt prices, driven by falling battery demand and increased exports from the Democratic Republic of the Congo.

Heatmap of Non-Ferrous Metals Prices in Euros

FOOD COMMODITIES

Cereal and edible oil indices are declining, while the tropical commodities index shows mixed movements.

PricePedia Financial Indices of Food Commodity Prices in US Dollars

CEREALS

The cereals heatmap shows declining prices for wheat, corn, oats and soybean meal.

Heatmap of Cereal Prices in Euros

TROPICAL COMMODITIES

The tropical commodities heatmap shows a weekly increase in Arabica coffee prices and a decline in sugar prices.

Heatmap of Tropical Food Commodity Prices in Euros

EDIBLE OILS

The edible oils heatmap shows a decline in canola oil prices.

Heatmap of Edible Oil Prices in Euros