Commodities post gains in September as precious and industrial metals rally

Global commodities posted modest gains in September, lifted by surging metals even as energy, agriculture and soft commodities faltered, according to Societe Generale’s monthly review.

The Bloomberg Commodities Index (BCOM) rose 1.8% for the month, bringing its year-to-date gain to 5.9% and ending September at 104.6

Metals lead the gains

Precious and industrial metals outperformed. Silver (XAGUSD:CUR) jumped 14.5%, gold (XAUUSD:CUR) climbed 10.2% and copper advanced 5.8%. Analysts cited a mix of dollar (DXY) weakness, supply disruptions -- including a mudslide halting output at Indonesia’s Grasberg copper mine -- and central bank demand for gold as key drivers. Zinc (LMZSDS03:COM) also gained 5.4%, while nickel (LN1:COM) slipped 1.6%.

Energy complex weakens

Energy markets remained under pressure, with the sector down 0.5% in September and off 7.5% for the year. Brent crude (CO1:COM) dropped 1.8% and WTI (CL1:COM) 1.7% despite OPEC+ moves to restore 1.66 million barrels per day of output beginning in October. Natural gas (NG1:COM) prices were flat, ending at $3.30/MMBtu after a late-month spike, while European benchmark TTF gas lost 3.6%.

Agriculture and softs under strain

The grains sector slid 3.7%, with wheat (W_1:COM) down 4.9% and corn (C_1:COM) off 1.1%. Soybeans (S_1:COM) and derivatives fell 5.2%, pressured by trade tensions and currency volatility in Argentina. Soft commodities were the weakest group: cocoa (CC1:COM) plunged 12.5%, sugar (SB1:COM) lost 2.7% and coffee (KC1:COM) fell 2.9%. Cotton (CT1:COM) edged down 1.2% despite strong monsoon rains in India boosting crop prospects.

Livestock mixed

Livestock declined 1.2% overall, though lean hogs (LH1:COM) rose 2.1% on tighter herd numbers. Live cattle (LC1:COM) slipped 2.7% following reports of a screwworm detection in Mexico, though the case was contained.

Outlook

The report highlights continued uncertainty from trade policy, OPEC+ output decisions and shifting weather conditions. Metals remain supported by supply constraints and central bank buying, while agriculture faces pressure from abundant global supplies, according to Societe Generale.