Developments in the world commodity markets during the first quarter of 1986

Abstract

The weakening in the International Commodity Markets observed during the last quarter of 1985 abated during the first quarter of 1986. The major factors which influenced developments in the markets during the period included in tense speculative activities among buyers excess supply and continued appreciation of the British pound against other major trading currencies. Also significant was the inability of some International Organisations (Cocoa & Coffee) to agree on prices and quarters during the review period. On balance, there was an increase of 4.5 per cent in the all-commodities price index which stood at 196.2 (1974 = I 00). The rates of increase for individual commodities ranged from 3.0 per cent for cocoa to 40.7 per cent for coffee. Prices of a number of commodities such as copra, ginger, groundnut and palm oil however declined during the period.