22 December 2023
Despite record highs in gold and frozen orange-juice prices, 2023 proved challenging for the broader commodities market. Key commodities indexes, including the S&P GSCI and the Bloomberg Commodity Index, are poised to register their largest annual losses in five years, primarily due to declines in natural gas, coal, and grains. The S&P GSCI traded 10% lower year to date, with its energy sector experiencing the most significant drop of 12%. Similarly, the Bloomberg Commodity Index saw a 12% decline, with its energy subindex falling by 24%. These indexes are on track for their steepest yearly percentage drops since 2018.