Commodity markets rally on supply worries and geopolitical tensions

Global commodity prices surged amid supply concerns, weather disruptions and heightened geopolitical risk. In the agriculture segment, Chicago futures saw rice up 4.2%, soybeans 3.6%, wheat 6.6% and corn 4.3%. Intercontinental Exchange reported coffee (+12.1%), sugar (+0.1%), cotton (+5.7%) and cocoa soaring 18.6% due to Brazilian and Vietnamese weather impacts and tightening global stocks.

Base metals also rose, with copper (+1.2%), nickel (+2.3%), zinc (+1.9%), aluminium (+2.1%) and lead (+1.1%) gaining on reduced inventories in China and supply worries from the Middle East and a fire at a South Korean zinc smelter. Precious metals were mixed: gold fell as a stronger dollar and higher bond yields raised the opportunity cost of holding the metal, while silver and platinum slipped and palladium edged up 0.5%.

Energy prices rebounded sharply; Brent crude climbed more than 5% as Middle‑East tensions revived and expectations grew that the U.S. Federal Reserve may accelerate rate hikes. Natural‑gas prices fell 2.8% on rising U.S. storage. The ongoing Russia‑Ukraine conflict added pressure to wheat supplies, contributing to the sharp rise in grain prices.