Which commodities will see the greatest price increases in 2024? (2024)

FAQs

Which commodities will see the greatest price increases in 2024? ›

Diseases, hurricanes, and other weather disruptions have lowered crop yields, increasing prices. Silver, gold, and copper have all shined this year, with the latter two hitting record highs in 2024. This year, the 13% move higher in gold can mostly be attributed to lower interest rates and foreign government buying.

Unlike prices for most other commodities, crude oil prices are set to increase by 2 per cent in 2024. Gold and copper prices are also set to rise this year, by 8 per cent and 5 per cent, respectively.

In 2024, nickel, iron ore, and zinc prices are projected to post the most significant declines year-on-year, at 21%, 9%, and 6%, respectively. However, copper and tin prices are forecast to increase modestly by 5% and 4%, respectively, while aluminum is expected to see a slight rise of 2%.

Commodity prices are projected to experience a slight downturn in 2024 and 2025 but are expected to remain above pre-pandemic levels. Energy prices are expected to decline by 3 percent in 2024, as notably lower prices of natural gas and coal offset higher oil prices, followed by a further decline of 4 percent in 2025.

Looking ahead into 2024, ISM forecasts that raw material prices will rise 3.2% during the first five months of the year. That rise is an improvement from past years, said Tim Fiore, ISM's chair of its Manufacturing Business Survey Committee. Prices rose 4.1% in 2023 and have spiked a whopping 25% since 2020.

Gold: Often the standard choice for investors, gold has a reputation for stability. Its price tends to increase in response to high inflation and currency devaluation, making it a favorite during economic downturns. It is less volatile than other precious metals and traditionally maintains its value over the long term.

As such, he expects that gold value will reach between $2,400 and $2,500 per ounce. "This would support an additional upside of approximately 7% and take the 2024 return to 20%," he says. Similarly, Gaffney also predicts that gold costs will approach $2,500 per ounce by the end of the year.

According to our current Scrap price prediction, the price of Scrap is predicted to rise by 228.04% and reach $ 0.010016 by June 28, 2024. Per our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 73 (Greed).

What is the long term commodity price forecast? ›

We forecast 2024 average annual prices at $2.40/mmbtu and rising further to $3.10/mmbtu in 2025. Beyond U.S. borders, LNG prospects look stable in the near-term.

After three years of extreme volatility, commodities prices are set to broadly stabilise in 2024. However, adverse weather conditions, escalating geopolitical tensions and soaring shipping costs are among the risks to watch to commodity price forecasts.

As the name would suggest, future-facing commodities are those that will carry humanity forward as we take on the momentous task of decarbonising the world. These are the commodities that are essential to the energy transition, including lithium, nickel, cobalt, manganese, graphite and copper.

A GlobalData poll found that gold, lithium, and copper are among the commodities set to see the greatest price increases in 2024. The lower price of lithium has been attributed to weaker-than-expected demand for EVs.

Three of the most commonly traded commodities include oil, gold, and base metals.

The U.S. Department of Agriculture has released its forecast for 2024 that shows all food prices are expected to increase 2.5% while food-at-home prices are predicted to go up 1.6%. Between January and February, the Consumer Price Index for food at home rose just 0.1% and was still 1% higher than February 2023.

A poll of 43 economists and analysts surveyed in the last two weeks forecast that Brent crude would average $84.62 a barrel in 2024 against a $82.33 consensus projection in March, the second consecutive upward revision this year. Brent has averaged around $83.50 so far in 2024.

Such minerals are often referred to as future-facing commodities (FFCs) and the type of mineral needed varies according to the technology used. For example, for electric vehicle batteries, performance, longevity and energy density are all highly dependent on lithium, nickel, cobalt, manganese and graphite.

The World Bank has recently released its April 2024 Commodity Outlook Report, which predicts a substantial drop in global food prices in 2024, with a projected 6 per cent decrease, followed by an additional 4 per cent decline in 2025.

A commodity's futures price is based on its current spot price, plus the cost of carry during the interim before delivery. Cost of carry refers to the price of storage of the commodity, which includes interest and insurance as well as other incidental expenses.