The global commodities market was largely flat in October, with the Bloomberg Commodity Total Return Index (BCOM TR) remaining essentially unchanged, but significant sector divergence was evident. Energy was the main driver, with crude oil and diesel prices strengthening due to supply disruptions in the Middle East and tightening refined product markets. European natural gas prices rose by approximately 38% during the month. However, European natural gas is not a component of the BCOM index. Precious metals were dragged down by rising bond yields, concerns about economic growth, and speculative long liquidation. The grain market also weakened due to harvest season supply pressures and capital outflows, while industrial metals saw a slight decline. In terms of year-to-date performance, the energy sector is projected to rise nearly 100% since 2026, reversing a decline of approximately 10% in 2025; precious metals, after rising approximately 80% in 2025, have fallen by about 11% this year. Overall, the commodities market is experiencing significant sector rotation, with a clear reversal in the year-to-date performance of energy and precious metals.
