Commodity prices from energy and metals to agricultural products rose sharply in 2021, with fuels leading the rally, fueled by tight supplies and a strong economic recovery as COVID-19 vaccinations prevented markets from collapsing.
Global demand for raw materials is expected to remain robust in 2022 and support prices as the global economy continues to recover. Similar price jumps are unlikely, say analysts and traders.
We believe that commodity prices will remain resilient and that the rebound in 2020 and the rally in 2021 were exceptional years. We therefore do not expect the same growth in the coming year.
Energy and food prices soared this year, adding to inflationary pressures around the world.
High prices actually encourage producers to step up their production, but some analysts expect supplies of products like oil and liquefied natural gas (LNG) to remain scarce as these projects take years to get production up and running.
Record prices for coal and natural gas led to a power shortage in Europe, India and China in 2021. Asian LNG gained more than 200% while Asia's benchmark coal price doubled.
Agricultural commodities
Chicago soybean prices rose for the third year in a row, corn by nearly 25 percent and wheat by more than 20 percent.
Supply bottlenecks due to adverse weather conditions and strong demand spurred agricultural markets in general.
Both Malaysian palm oil and soybean oil gained more than 30%, each increasing for a third year in a row.
Source
Hansa Terminhandel GmbH