On Friday, 29 December, the Thomson Reuters / CoreCommodity CRB Excess Return Index (TRCCRB) was estimated to fall by 4% due to the 2023 interest rate hikes and negative global growth.
Cocoa prices remain high as crude oil dips
Cocoa and iron ore performed positively for investors, however, with the former rising to a multi-decade high of 72% following difficulties along the supply chain. Iron also rose approximately 55% as China continued to create more houses for its in-demand property sector.
Cocoa on the New York Stock Exchange hit a 46-year high and are predicted to remain buoyant next year; poor harvest and dry climates in West Africa are believed to contribute to cocoa’s stable positive price.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
Lu Ming Pang, an energy analyst at Rystad, noted that natural gas and coal prices have fallen since their record high in 2022, partly due to the easing of demand from Russia’s invasion of Ukraine and partly due to milder-than-predicted winter weather. Pang stated:
A warm start to this winter has kept prices deflated so far, and if it remains warm as forecast, most regions will be able to tide through this winter comfortably, with even more to spare for next year’s winter.
Analysts from Macquarie suggest that global giants such as Brent and West Texas Intermediate (WTI) crude oil will average $77 and $73 per barrel, respectively, in 2024.
