Volatility in commodity markets is back to normal

After months of high volatility and large price movements in the commodity markets, the prices have now started to stabilize. Due to Covid-19, the volatility in commodities has in the previous months reached levels not seen since the global financial crisis. However, the volatility of the Kairos Commodity Index has declined recently and is now at 9.58% which is within the normal range.

As the markets have stabilized, the prices have also continued to recover. The Kairos Commodity Index is now only down by 7.8% for the year after being down by 17.4% at the end of April. Most recently, the largest increases have been among plastics and animal products. The Kairos Plastic and Animal Products indices have increased by 7.9% and 5.5% respectively since the end of June. The only index that has declined is the Kairos Steel Index, which has decreased by 1.0% since June.

Overall, commodity prices have been increasing lately and the Kairos Commodity Index has risen by 2.2% in July.