March was a mixed month for commodity prices. Oil prices eased after briefly spiking, as jitters over Ukraine-Russia geopolitical tensions subsided. Gold ended the month in red, reversing initial gains after the Fed’s FOMC policy decision, with the spot pr ice slipping below the USD 1,300/oz-mark.
Most of the industrial metals declined in March, led by Copper (-4.9%) as concerns over China’s economic growth weighed on the demand outlook. However, alumin ium prices stabilized and spot premia remain at elevated levels amid delays in securing delivery of the metal from LME-warehouses.
Meanwhile, most agricultural commodities gained as weather-related disruptions weighed on the supply outlook. Sugar ended the month up by 8% amid supply concerns following the drought in Brazil.