Global commodity markets saw a mixed but notable year in 2024, with gold leading a basket of gains, while cocoa and coffee caused price pain for everyday consumers. Here’s a snapshot of key trends:
1. Commodities Index
The Bloomberg Commodity Spot Index rose 6.3% in 2024, reversing 2023’s decline. Gold’s stellar performance lifted the gauge, but falling prices for crops like wheat, corn, and soybeans tempered its overall gains.
2. Crude Oil
US crude stockpiles hit a 17-year seasonal low at Cushing, Oklahoma, shrinking by 1 million barrels in late December. This pushed the West Texas Intermediate (WTI) prompt spread to three-month highs, signaling tighter supply conditions.
3. Softs Surge
Cocoa and coffee prices skyrocketed in 2024, pinching chocolate lovers and coffee drinkers alike. Leading chains, such as Starbucks, are responding with price hikes, while candy bars are getting smaller and pricier. This trend is expected to persist through 2025.
4. Gold ETFs
Gold-backed ETFs saw a fourth consecutive year of outflows, down 3.2% in 2024. Optimism for Fed rate cuts buoyed them briefly, but Donald Trump’s election win in November strengthened the dollar, driving a selloff in gold ETFs and a dip in bullion prices.
5. Green Hydrogen Costs
Green hydrogen’s path to affordability hit a snag, with BloombergNEF tripling its 2050 cost estimate. The high price of electrolyzers and other production costs have dampened optimism, though incentives from global governments could still reshape the outlook.