Commodity prices rise in May as global risk appetite improves

By Burhan Sansarlıoglu and Emir Yıldırım

ISTANBUL (AA) - Global commodity prices rose in May as trade tensions between the US and China eased, geopolitical risks declined, and demand from China remained steady, boosting investor risk appetite.

A key factor was the US-China meeting in Geneva, where officials agreed to ease ongoing trade and tariff disputes. The agreement brought renewed optimism to global markets and helped lift several commodity prices.

Expectations that the US Federal Reserve may cut interest rates also supported price gains, along with the weakening of the US dollar, which typically increases investor appetite for commodities.

- Metals and energy

Silver rose 1.1% per ounce, palladium 3.1%, and platinum 9.4%. Gold remained flat despite the broader easing of geopolitical risks.

Base metals also showed gains. Copper rose 2.4% per pound as China’s demand remained high despite surplus forecasts. Aluminum rose 2%, lead 0.5%, and zinc 2%.

Nickel declined slightly, down 0.3%.

Brent crude oil increased 2.6% in May. Natural gas prices surged 10.6%, driven by supply constraints and increased demand.

- Agricultural commodities

Dry weather in China, Russia, and Europe threatened wheat yields, while erratic conditions in the US lifted wheat prices 0.6%.

Rice prices increased 2.1% on expectations of rising demand after the mutual easing of tariffs between the US and China.

Corn fell 6.6% as global production forecasts increased. Sugar declined 1.2% due to rising output in Brazil and India.

Coffee dropped 14.6%, driven by a 29-year production high in Colombia. Cotton prices dipped 1.5% amid demand and growth concerns.

Cocoa posted the largest gain, jumping 10.2% during the month.