Cocoa, coffee to lead global commodity gains in 2024

Cocoa and coffee are poised to become the top-performing commodities for 2024, driven by global supply deficits, while steel-making coal will end the year with the steepest losses amid China’s sluggish growth.

Cocoa prices nearly tripled, reaching a record $12,931 per metric ton in December due to dry weather and declining production in top growers Côte d’Ivoire and Ghana. Coffee prices also soared to 40-year highs following severe droughts in Brazil.

Meanwhile, crude oil and iron ore faced headwinds from weak Chinese demand, with iron ore prices set to drop 15 per cent in 2024.

Analysts predict further declines in 2025, despite Beijing’s stimulus measures. Precious metals, including gold and silver, gained over 25 per cent this year, supported by safe-haven demand and central bank purchases.

In agriculture, Malaysian palm oil futures rose 20 per cent, rebounding from two years of losses, while rubber futures climbed 42 per cent due to adverse weather. However, soybeans, corn, and wheat faced ample supply, leading to price declines.

Analysts warn that 2025 could see continued commodity volatility, influenced by global trade tensions and US economic policies under Donald Trump’s administration.

Attribution: Reuters

Subediting: Y.Yasser