Today’s Top Commodity Movers You Can’t Miss

Commodities Market Today: Energy, Metals & Agriculture Trends

The commodities market remains dynamic as traders react to shifting supply, demand, and geopolitical news. In early June 2025, energy prices were under pressure from rising output and trade uncertainty, while precious metals held steady amid safe-haven demand. Agricultural commodities saw mixed moves – cereal and sugar prices eased on plentiful harvests. Below we unpack the latest price movements across energy, metals, and agricultural commodities, explain how beginners can start trading, and answer common questions about this asset class. (For snapshots of recent market moves, see our Top Commodity Price Surges report and Top 5 Indian Stock Market Updates.)

Overview of Major Commodity Sectors

Global indices show divergent trends in May 2025. The World Bank’s commodity indices reported a 4.4% fall in energy prices (driven by U.S. natural gas down 8.4% and oil down 4.8%), while non-energy prices rose 1.0%. Within non-energy, metal and precious metal indices each gained 2.7%, whereas food prices dropped 1.9%. The table below summarizes these index movements, highlighting broad sector trends:

Commodity Index	May 2025 Change
Energy Price Index	–4.4%
Food Price Index	–1.9%
Raw Materials	+0.7%
Beverages	+4.9%
Fertilizers	+3.1%
Metals	+2.7%
Precious Metals	+2.7%

Key takeaway: Energy commodities weakened in May (e.g. oil and gas), while metals (including precious metals) and fertilizers saw gains. Agricultural products were softer, reflecting ample food output.

Image: Offshore oil platform at sunset – a symbol of energy commodities in the commodities market. (Alt: “Offshore oil platform at sunset symbolizing energy commodities in the commodities market.”)

Energy Commodities

Energy markets were mixed in early June. Oil prices have stabilized after recent volatility. For example, Brent crude settled around $64.86/barrel on June 4 (down ~1.2%), and U.S. WTI at $62.85 (down ~0.9%). Investors are watching U.S. inventory reports and OPEC+ moves. On one hand, U.S. gasoline and diesel stocks posted surprising builds, signaling weak demand. OPEC+ plans to lift output by an additional 411,000 barrels/day in July, keeping supply ample. These factors have weighed on prices. On the other hand, geopolitical tensions (e.g. Middle East conflicts, recent wildfires in Canada) have provided occasional bullish spikes.

• Oil Prices: As of early June, Brent is around $65 and WTI around $63 per barrel. (See table below.) Futures data show only modest gains over late May. OPEC+ production cuts earlier in 2023 have largely rolled off, and U.S. output remains high. Analysts note that a large build of refined products (gasoline/distillate) in the U.S. made the latest inventory report bearish for oil. Key drivers:

  • Rising OPEC+ output in July
  • U.S. fuel stockpiles unexpectedly up
  • Seasonal summer demand outlook
  • Geopolitics (Middle East, Russia)

• Natural Gas: U.S. natural gas prices (Henry Hub) have been volatile. Record production has pressured prices recently, but forecasts for summer heat and strong LNG export demand could provide support. For example, gas futures fell to around $3.32/MMBtu in mid-April amid record output. However, traders remain alert to weather and pipeline flows ahead of summer.

Precious Metals

Precious metals like gold and silver often reflect investor sentiment on risk and inflation. Early June saw gold hold near multi-year highs. On June 4, spot gold was about $3,378/oz (up ~1%), and U.S. futures around $3,399/oz. Gold’s gains have been driven by a softer dollar and concerns over economic growth. Weak U.S. services data and trade tensions (e.g. between the U.S. and China) boosted safe-haven demand.

Silver, often tied to gold, has surged sharply in 2025. Analysts note silver’s strong industrial use and persistent supply deficits. On June 5, spot silver climbed to about $35.8/oz – a 13-year high – up roughly 24% for 2025. The gold-silver ratio (number of ounces of silver per ounce of gold) has fallen from 105 in April to ~94, reflecting silver’s outperformance. Some analysts see silver possibly reaching $40–50/oz if industrial demand stays firm.

Key factors for precious metals:

• Safe-haven demand: Geopolitical or economic uncertainty (e.g. Middle East, trade wars) drives flows into gold and silver.
• Dollar and rates: A softer U.S. dollar (down ~0.5% on June 4) makes gold cheaper in other currencies, supporting prices. Federal Reserve interest rate expectations also influence outlook.
• Central bank buying: Ongoing purchases of gold by central banks (for diversification) help underpin prices.
• Inflation hedge: Commodities like gold protect against inflation, an important role noted by market analysts.

Base & Other Metals

Base metals (like copper and aluminum) have a mixed outlook. Global industrial activity (especially in China) is stabilizing, leading to steady but not runaway demand. For example, copper prices have seen modest fluctuations. The World Bank notes metal prices overall rose in May. Battery and critical minerals (nickel, cobalt, rare earths) are in structural transition due to energy transition demand. We discuss rare earths separately below. In general, base metals benefits include infrastructure/renewables demand, but they also face headwinds from slowing growth and ample supply.

Agricultural Commodities

Global food and crop prices have eased recently after earlier highs in 2022. The UN’s FAO food price index fell 0.8% in May 2025, though it is still about 6% above a year ago. In particular, cereal prices (wheat, corn, rice) were down: the FAO cereal price index dropped 1.8% month-on-month, led by a sharp decline in maize (corn) prices on strong harvests in Argentina, Brazil, and expectations of a record US crop. Wheat prices slipped with improving northern hemisphere crops, and sugar prices fell 2.6% on weak demand.

Food Commodity Index	Change (May 2025)
FAO Food Price Index	–0.8%
Cereals Price Index	–1.8%
Vegetable Oils Price Index	–3.7%
Sugar Price Index	–2.6%
Meat Price Index	+1.3%
Dairy Price Index	+0.8%

Insights from agriculture: Lower prices suggest ample supply and subdued demand in parts of the food sector. For example, palm and soy oil prices fell ~3–4% as new production came online. Rice was an exception, rising slightly (+1.4%) due to strong demand for aromatic varieties. Meat prices climbed modestly (+1.3%) on tight beef/pork markets, while poultry eased. Notably, FAO forecasts a record global grain harvest in 2025, further pressuring prices.

Image: A cornfield under a blue sky – symbolizing agricultural commodities in the commodities market. (Alt: “A cornfield under a blue sky, representing agricultural commodities in the commodities market.”)

How to Start Commodities Trading

Interested in the commodities market? Beginners should start simple and learn the basics first. A common approach is to use futures or CFDs via a trading account, as actual physical delivery of goods (like barrels of oil or bushels of wheat) is impractical for most individual traders. Here are typical steps to get started (based on a broker guide):

1. Open a Brokerage Account: Choose a regulated broker and open a trading account (often you can start with a demo account to practice with virtual money).
2. Learn the Platform: Log into the trading platform and familiarize yourself with commodity symbols (e.g. “CL” for crude oil futures, “GC” for gold futures, etc.).
3. Analyze & Plan: Research the commodities you’re interested in (fundamentals, charts, news). Develop a strategy (trend following, mean reversion, etc.) and decide how much capital to risk.
4. Place Your Trade: Enter a “buy” or “sell” order for the chosen commodity (futures contract or CFD). You can choose order types and set stop-loss orders to manage risk.
5. Monitor and Manage: Keep an eye on your position as prices move. Use charts and alerts. Be ready to exit or adjust your trade if market conditions change.

A numbered list like above makes the process clear. Beginners are strongly advised to start on a demo account until comfortable. Commodity trading often involves leverage (futures margin), so risk management (like stop-losses and position sizing) is crucial.

Best Commodities for Beginners

Some commodities are considered more “beginner-friendly” due to liquidity and transparency. Experts often recommend starting with major, well-known commodities such as gold, oil (crude), and copper. These markets are liquid (easy to enter/exit) and widely followed by news sources:

• Gold: A popular safe-haven asset; widely traded with 24/7 global markets. Its drivers (dollar strength, inflation) are often covered extensively, making analysis more accessible.
• Crude Oil (WTI/Brent): The world’s primary energy commodity, heavily influenced by macro factors (OPEC, global growth). Its volatility can be high, but many education resources exist for oil market trends.
• Copper: Sometimes called “Dr. Copper” for its role in industrial demand. Copper prices reflect global economic activity (construction, manufacturing). It’s liquid on major exchanges and can teach traders about cyclical demand.

Starting with these three allows new traders to learn commodity markets without dealing with the idiosyncratic risks of niche markets (like exotic agricultural products or minor metals). As one beginner guide notes, “The best commodities for beginners are copper, oil, and gold”. After gaining experience, traders can diversify into other sectors (natural gas, agricultural grains, etc.).

Rare Earth Metals in 2025

Rare earth metals (like neodymium, dysprosium, terbium) are increasingly important for tech (EV motors, wind turbines, electronics). Demand for these critical minerals is rising: the IEA reports that rare earth demand grew 6–8% in 2024, driven by energy and battery applications. Governments (especially the U.S. and China) are making big investments to secure rare earth supply chains.

However, rare earth prices have been volatile and generally soft through 2024. In early 2025, many rare earth oxides were still below their 2024 peaks. For example, prices of neodymium-praseodymium (NdPr) fell about 17% in early 2024, and heavy rare earths like dysprosium fell ~30%. By year-end, dysprosium was down over 30% from January’s level. The downturn reflects high inventories and China’s large share of production. Analysts expect continued volatility – supply disruptions (e.g. in Myanmar mines) can cause spikes, while Chinese production and stockpiles keep a lid on prices.

Investing tip: Rare earths are not traded on a single exchange like gold. Retail investors typically access them through related companies (mining stocks or ETFs). The sector’s small size and reliance on Chinese supply mean it’s a long-term play. Experts suggest that unless major new mines come online or geopolitical events cut off supplies, rare earth prices may stay relatively subdued in 2025. Those seeking exposure should do thorough due diligence.

Physical vs. Futures Commodity Trading

A key question is physical vs. futures trading. Physical trading means taking delivery of the actual commodity (e.g. storing barrels of oil or bins of grain). This is common for companies that need the commodity (like airlines or food processors), but not practical for most investors. Physical delivery involves logistics (storage, transport) and is generally handled by producers and consumers, not speculators.

By contrast, futures contracts are the most common way to trade commodities. A futures contract is a standardized agreement to buy/sell a set amount of a commodity at a specified price and date. Importantly, many commodity futures are cash-settled, meaning no physical goods change hands; instead, the contract is closed for cash profit or loss. This makes futures very liquid and convenient for traders. For example, most gold or oil futures trades end in cash without delivery.

In practice, futures (and related derivatives like CFDs or options) dominate commodity speculation. Physical trades still occur (e.g. inventory financing), but only a small fraction of contracts result in actual delivery. As one explanation notes, cash settlement adds liquidity and convenience to the market. For a retail trader, the take-away is: start with futures/ETFs/CFDs for simplicity, and understand that physical vs futures mainly differs in whether you ever intend to take delivery.

Example: If you trade crude oil futures on CME, you can profit from price moves without ever handling barrels. In contrast, buying an actual oil barrel would involve tanker storage and transport – not realistic for most traders. The advantage of futures is leverage (you only need a margin deposit) and ease of trading, but the disadvantage is high risk (see next section).

Is Commodity Trading Safe?

Commodity trading carries unique risks. The high volatility of commodity markets means prices can swing dramatically on news. For instance, FP Markets warns that trading commodities “is all about speculation” – sudden geopolitical events or supply shocks can cause huge price shifts. In calm times, commodities may move steadily, but even then weather or economic surprises can trigger sharp moves (e.g. a drought or a tariff announcement).

However, with careful strategy and risk management, commodity trading can be relatively safe. Because commodities often hedge inflation and diversify portfolios, experts note that “when done in a calculated fashion,” commodity investing is a useful way to mitigate risk. For example, adding some gold exposure can protect against stock market turbulence.

Tips to trade safely:

• Education: Understand each commodity’s fundamentals (supply/demand drivers).
• Diversification: Don’t put all your funds in one commodity. Consider a basket (energy + metals + agri).
• Leverage Caution: Futures amplify gains and losses. Use only moderate leverage and set stop-loss orders.
• Stay Informed: Monitor news (weather reports, policy changes, inventory data). Use multiple sources to confirm analysis.

In short, commodity trading is not inherently “safe” or “dangerous” – it depends on your knowledge and discipline. Even safe commodities like gold can have big downturns in the short term. But as a diversified portfolio component (especially for longer-term investors), commodities can play a stabilizing role.

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Frequently Asked Questions

What is the commodities market?
The commodities market is where raw materials like oil, wheat, gold, etc., are bought and sold. It includes physical markets and derivatives exchanges. Commodities are fungible goods (one barrel of oil is like another) and form inputs to many industries. Major commodity markets are categorized into Energy (oil, gas), Metals (gold, copper, rare earths), and Agriculture (grains, livestock). Trading usually happens via futures contracts on exchanges.

How do I start trading commodities?
Typically by opening a trading account with a broker that offers commodity futures or CFDs. Beginners should use a demo account first to practice buying/selling (step-by-step in our “How to Start” list above). Learn to read commodity charts and economic reports (e.g. EIA oil data, USDA crop reports). Start small, with well-known commodities like gold or crude oil, and use stop-losses to limit risk.

Which commodities are best for beginners?
Start with liquid, familiar commodities. Experts often recommend gold, crude oil, and copper. These have large markets, lots of information available, and lower extreme volatility than niche markets. For example, gold is globally traded and sensitive to inflation and currency trends, which beginners can follow via news and analysis. Over time, you can expand to others (natural gas, agricultural futures, etc.) as you learn.

What about rare earth metals? Should I invest in 2025?
Rare earths are a critical emerging sector, but they behave differently than mainstream commodities. Demand is tied to high-tech manufacturing, and supply is concentrated geographically. Prices have been weak recently, so a common strategy is to invest via mining stocks or ETFs rather than spot trades. If considering rare earths, do so with a long-term horizon and awareness of geopolitical supply risks.

Physical vs. Futures – what's the difference?
Physical trading means dealing in the actual commodity (taking delivery). Futures trading means speculating on price changes via standardized contracts. Most individual traders use futures (or ETFs) because they allow trading without handling the physical good. Futures often settle in cash; very few contracts result in actual delivery. Cash-settled futures simply pay profit/loss differences. So for most purposes, futures trading is more practical.

Is commodity trading safe?
All trading involves risk. Commodities are particularly sensitive to global events (weather, politics, policy). This can mean big swings, both up and down. The market rewards those who understand the fundamentals. With education, risk controls (like diversification and stop orders), and realistic expectations, commodity trading can be managed safely. Remember that commodities often complement stocks and bonds by providing diversification and inflation protection.

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