World Bank warns of deepening commodity price slump in 2026

Tuesday, October 28, 2025 at 09:30 UTC+01:00 (+0100), N/A, Washington, D.C.

News category : Commodity and Currency Events

The World Bank issued its October 2025 Commodity Markets Outlook, forecasting a sharp decline in commodity prices through 2026. The report pointed to a widening oil surplus, sluggish global growth, and persistent policy uncertainty as key drivers. Energy prices are expected to fall significantly, which could help ease global inflation but also undermine revenues for commodity-exporting nations. Soft food prices and falling base-metal demand were also highlighted, potentially threatening fiscal stability in several emerging markets. The World Bank urged governments to use this window to implement structural reforms and invest in diversification and productivity improvements to build resilience.

Overall market impact

Mild bearish market impact - strength score : 70/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

Commodity futures (energy, metals)

EM equities reliant on commodity exports

Mining stocks

Inflation-linked bonds

FX of commodity-exporting nations

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