Global Commodities Mixed in September: Grains, Softs Fall; Metals Rise
Global commodities markets experienced a mixed performance in September, with soft commodities and grains sectors taking a hit while metals and energy markets remained under pressure. Meanwhile, global commodities posted modest gains for the month and year-to-date.
The grains sector saw a significant drop, with wheat leading the decline at 4.9% and corn off by 1.1%. This was followed by soft commodities, which were the weakest group, with cocoa plunging 12.5% and sugar losing 2.7%. Soybeans and derivatives also fell 5.2%, impacted by trade tensions and currency volatility in Argentina.
Energy markets continued to face pressure, with the energy sector down 0.5% in September and off 7.5% for the year. Despite OPEC+ moves to restore output, Brent crude dropped 1.8% and WTI fell 1.7%. The report cited continued uncertainty from trade policy, OPEC+ output decisions, and shifting weather conditions.
Metals, however, led the gains. Silver jumped 14.5%, gold climbed 10.2%, and copper advanced 5.8%. Notably, the Russian Central Bank made a renewed stock market purchase in September 2021, accounting for approximately 6.2 percent of its total gold reserves at that time.
Livestock saw a mixed performance, with the overall sector declining 1.2% but lean hogs rising 2.1% on tighter herd numbers. Live cattle slipped 2.7% following reports of a screwworm detection in Mexico.
In summary, while global commodities posted modest gains in September and year-to-date, the grains and soft commodities sectors experienced significant declines. Energy markets remained under pressure, and metals led the gains. The report highlights continued uncertainty in the market due to various factors, including trade policy and weather conditions.
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