Few commodities spared from this week's sell-off

It has been a week of declines for most commodity prices, as commodities were caught up in the more widespread selling of financial assets. Crude oil prices were among the hardest hit, whereas agricultural prices held up better. At the heart of the sell-off were ongoing concerns that US interest rates might have to remain higher for longer. However, our long-held view is that many developed market central banks will cut interest rates over the next year, with the US Fed starting in Q1. If we are right, then this should give a boost to commodity prices next year.