Industrial commodities and energy markets face supply risks

Industrial commodity markets are experiencing divergent trends. Cocoa futures remain near monthly lows at approximately 5,600 USD per ton due to rising inventories on the ICE exchange, which reached a 2.5-year high in late October. However, price declines may be limited by increasing processing demand in Asia and potential supply risks in West Africa, where low rainfall in Ivory Coast and weather-related issues in Ghana threaten the 2026/27 harvest.

Palm oil prices in Malaysia have risen above 4,800 MYR per ton, supported by tightening supply prospects, El Niño concerns, and Indonesia’s B50 biofuel plans.

In the energy sector, global crude oil prices remain elevated despite a slight early-week dip. WTI crude traded near 101.5 USD per barrel, while Brent hovered around 110.21 USD per barrel. High prices are driven by supply disruption fears in the Middle East following Houthi attacks on Saudi Arabian energy infrastructure and reports of explosions in southern Iran. Analysts suggest that Middle Eastern exports may not sufficiently offset the impact of maritime attacks in the Strait of Hormuz.