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Commodity Markets Outlook, October 2025

Commodity prices are expected to decline by about 7 percent overall this year, reflecting subdued global economic activity, elevated trade tensions and policy uncertainty, ample global supply of oil, and weather-related supply shocks. In 2026, commodity prices are forecast to fall by a further 7 per...

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Main Author: World Bank
Format: Online
Language:en_US
Published: Washington, DC: World Bank 2025
Subjects:
Online Access:https://openknowledge.worldbank.org/entities/publication/d08d3ee8-e38a-4f02-8ade-95b9c6075c0b
https://hdl.handle.net/10986/43864
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author World Bank
author_facet World Bank
author_sort World Bank
collection Publicaciones institucionales emblemáticas
description Commodity prices are expected to decline by about 7 percent overall this year, reflecting subdued global economic activity, elevated trade tensions and policy uncertainty, ample global supply of oil, and weather-related supply shocks. In 2026, commodity prices are forecast to fall by a further 7 percent, a fourth consecutive year of decline, as global growth remains sluggish and the oil market oversupplied. Energy price movements are envisaged to continue contributing to global disinflation in 2026. Metals and minerals prices are expected to remain stable in 2026, while agricultural prices are projected to edge down, primarily due to strong supply conditions. Precious metals prices are expected to rise another 5 percent, after a historically large, investment-driven rally of about 40 percent in 2025. Risks to the commodity price projections are tilted to the downside. Key downside risks include weaker-than-expected global growth, a longer-than-assumed period of economic policy uncertainty, and additional oversupply of oil. Upside risks include intensifying geopolitical tensions, the market impact of additional oil sanctions, supply reductions stemming from additional trade restrictions, unfavorable weather conditions, faster-than-expected rollout of new data centers. Commodity price volatility in recent years has revived interest in supply management via international commodity agreements. Historical experience, however, shows that the most effective policy is to promote diversification, innovation, transparency, and market-based pricing—measures that build lasting resilience to commodity price volatility.
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spelling wb-10986-438642025-12-18T18:38:35Z Commodity Markets Outlook, October 2025 World Bank ENERGY AGRICULTURE FERTILIZERS METALS AND MINERALS Commodity prices are expected to decline by about 7 percent overall this year, reflecting subdued global economic activity, elevated trade tensions and policy uncertainty, ample global supply of oil, and weather-related supply shocks. In 2026, commodity prices are forecast to fall by a further 7 percent, a fourth consecutive year of decline, as global growth remains sluggish and the oil market oversupplied. Energy price movements are envisaged to continue contributing to global disinflation in 2026. Metals and minerals prices are expected to remain stable in 2026, while agricultural prices are projected to edge down, primarily due to strong supply conditions. Precious metals prices are expected to rise another 5 percent, after a historically large, investment-driven rally of about 40 percent in 2025. Risks to the commodity price projections are tilted to the downside. Key downside risks include weaker-than-expected global growth, a longer-than-assumed period of economic policy uncertainty, and additional oversupply of oil. Upside risks include intensifying geopolitical tensions, the market impact of additional oil sanctions, supply reductions stemming from additional trade restrictions, unfavorable weather conditions, faster-than-expected rollout of new data centers. Commodity price volatility in recent years has revived interest in supply management via international commodity agreements. Historical experience, however, shows that the most effective policy is to promote diversification, innovation, transparency, and market-based pricing—measures that build lasting resilience to commodity price volatility. 2025-10-29 2025-10-29 Report https://openknowledge.worldbank.org/entities/publication/d08d3ee8-e38a-4f02-8ade-95b9c6075c0b https://hdl.handle.net/10986/43864 10.1596/43864 d08d3ee8-e38a-4f02-8ade-95b9c6075c0b en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank, Washington DC application/pdf application/pdf application/octet-stream application/pdf Washington, DC: World Bank
spellingShingle ENERGY
AGRICULTURE
FERTILIZERS
METALS AND MINERALS
World Bank
Commodity Markets Outlook, October 2025
title Commodity Markets Outlook, October 2025
title_full Commodity Markets Outlook, October 2025
title_fullStr Commodity Markets Outlook, October 2025
title_full_unstemmed Commodity Markets Outlook, October 2025
title_short Commodity Markets Outlook, October 2025
title_sort commodity markets outlook october 2025
topic ENERGY
AGRICULTURE
FERTILIZERS
METALS AND MINERALS
url https://openknowledge.worldbank.org/entities/publication/d08d3ee8-e38a-4f02-8ade-95b9c6075c0b
https://hdl.handle.net/10986/43864
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