ISTANBUL (AA) - Commodity markets were under selling pressure last week as the Fed’s hawkish monetary stance was felt more than ever.
The US central bank made its stance clearer amid the Russia-Ukraine war as well as concerns over rising COVID-19 cases in China.
Fed Chairman Jerome Powell said that a 50 basis point rate hike will be "on the table" at a Fed meeting set for next week, May 3-4.
St. Louis Fed President James Bullard stressed that the Fed should take even more drastic steps, noting that hikes of 75 basis points have been done before and "this is not the end of the world."
With the Fed statements, a rise in US 10-year bond yields and growing demand for the dollar dominated commodity markets last week.
Last week, gold fell 2.1%, silver 5.8%, and platinum 6.3%, while palladium rose 0.3%.
Despite the selling pressure in commodity prices, supply concerns caused palladium prices to rise.
Natural gas prices bounced back from a 14-year high.
Last week, sharp decreases were seen in energy commodities.
Brent crude fell 4.7%.
Natural gas, which saw its highest level since October 2008 with $8,065, also fell from this level, giving back all its gains and ending the week with a loss of 11.4%.
Weather forecasts of rising mercury pushed natural gas prices downwards.
Copper fell 1%, aluminum 1.5%, and lead 1.9%.
The rise in the dollar index, falling Chinese demand, and rising stocks triggered a drop in metal prices.
- Corn saw over $8
Fluctuations were seen in agricultural commodities last week.
Wheat traded on the Chicago Mercantile Exchange fell 2.7%, while soybeans rose 1.4%.
Corn, which last week saw its highest level since September 2012 with $8.14, gave back some of its gains and closed the week up 0.7%.
Corn prices soared to highs as the Russia-Ukraine war threatened global supplies and boosted demand for US grain.
Soybean prices also rose on expectations of tighter supplies. Increases in world wheat production estimates caused wheat to lose value.
While coffee gained 1.5% last week, sugar prices lost 1.1%, cotton 2%, and cocoa 3.1%.
Low coffee production in Vietnam and low inventories caused prices to rise.
*Writing and contributions by Aysu Bicer in Ankara