Amid ongoing geopolitical conflicts, the commodities market remains in a state of volatility.
Certain commodities are facing intensified pressures which has led to fluctuations and heightened concerns among both investors and analysts alike.
Meanwhile, Disney has demonstrated robust returns in contrast to the struggles faced by Vodaphone.
Last week, global cocoa prices have reached a record high. Due to adverse weather conditions and the spread of tree disease in the cocoa plantations of the Ivory Coast and Ghana – two of the leading cocoa producing national globally – crops have deteriorated.
Ongoing winds have dried out cocoa trees in western Africa, causing a tightening of supplies and leading to the commodity’s price rising significantly.
Additionally, oil prices settled higher last week due to growing concerns about supply from the Middle East. The rejection of a ceasefire deal by Israel’s Prime Minister has heightened tensions, raising concerns about a potential broadening of the conflict in the oil-rich Middle East. This uncertainty surrounding geopolitical events has contributed to increased apprehension in the market, leading to a rise in the price of heating oil.
Elsewhere, Disney’s stock saw a substantial increase following the release of its first-quarter earnings, surpassing analyst expectations. The profit forecast for the year, rooted in Disney’s cost-cutting measures and the strong performance of its international theme parks, helped to boost the company’s value.
Despite a temporary decrease in Disney+ subscribers, the overall positive outlook, highlighted by plans to add millions of Disney+ subscribers in the second quarter, fuelled the rise in Disney’s stock.
Looking at our most falling table* last week, the abrupt decline in natural gas prices can be attributed to a combination of factors. A lack of new buying interest and resilience of short sellers has contributed to the shift in lower prices. Further to this, mild weather forecasts for March have kept appetite for natural gas low.
While colder conditions expected in mid-February might temporarily increase demand, traders are adapting to changing weather forecasts, anticipating an overall downward trend.
What’s more, the recent fall in value of palladium can be attributed to several factors. Palladium dropped below platinum for the first time since 2018 due to growing demand concerns and expectations of stable supply, impacting the metal’s pricing dynamics.
In fact, Palladium hit a five-year low last week, as a result of the auto sector’s shift towards replacing palladium with cheaper platinum. Moreover, the expanding market share of electric vehicles further contributed to shrinking demand.
Vodafone has also experienced a decline. Despite the company’s substantial revenues, annual profits, and high dividend yield, its shares have hit a 30-year low with a market capitalisation under £18 billion, raising concerns among investors.
The company’s strategy of shedding assets to generate short-term cash has contributed to this decline, potentially impacting its long-term revenue and profit prospects.
