Commodities Prices

After rising at the fastest pace in recent history in March, commodity prices rose further in April. The U.S.-Iran war continued, choking off Middle East energy exports, driving up prices for most commodities in the energy complex. Agricultural prices also rose, driven by higher input costs and fuel prices. These factors supported the prices of commodities used in biofuel production, now considered a cheaper option than hydrocarbons. Regarding base metals, some commodities benefited from demand optimism around mid-April following an Iran-U.S. ceasefire, while others benefited from supply disruptions of input materials and reduced output capacity due to Iranian attacks on smelting facilities. On the flipside, precious metal prices fell, as the war hurt expectations of U.S. interest rate cuts.

Commodities prices increased 3.9% month on month in April, following March’s 22.3% rise.