Commodities Update: Cotton Rises, Palladium Declines
· Commodities · QuoteReporter
Commodities Update: Cotton Rises, Palladium Declines
Commodities Market Update | February 12, 2026
Market Commentary
### Commodities Market Commentary: Geopolitical Tensions and USD Strength Shape Mixed Performance
Commodity markets exhibited modest gains amid heightened geopolitical risks and shifting monetary policy expectations, with energy prices leading the upside while select agricultural sectors showed resilience. Escalating US-Iran tensions have driven a risk premium into oil benchmarks, supporting WTI crude at $64.66 (+0.05%) and Brent at $69.39 (-0.01%), as supply disruptions in the Middle East remain a key concern. Natural gas futures climbed to $3.19 (+0.92%), bolstered by tighter regional supply dynamics and colder weather forecasts amplifying winter demand in key consuming regions. These energy trends ripple through broader markets, elevating input costs for manufacturing and transportation, which could stoke inflationary pressures if prolonged.
A strengthening US dollar, fueled by robust jobs data that diminished expectations for Federal Reserve rate cuts, weighed on dollar-denominated commodities overall. The EUR/USD pair’s weakening reflects this dynamic, curbing import demand from Europe and Asia and pressuring prices for metals and softs. Copper edged higher to $5.96 (+0.24%), defying the USD uptick on robust infrastructure demand signals from emerging markets, though sustained dollar appreciation risks capping further gains amid global supply chain vulnerabilities.
In precious metals, gold held steady at $5,073.10 (+0.03%), reinforcing its role as an inflation hedge amid uncertainty over interest rate trajectories. With central banks like the Fed signaling a cautious approach to easing, gold benefits from its non-yielding appeal, particularly as geopolitical flashpoints erode investor confidence in fiat currencies.
Agricultural markets displayed divergence, with cotton surging to $64.09 (+4.06%) on supply constraints from adverse weather in major producers like the US and India, tightening global balances. Cocoa advanced to $3,862.00 (+1.50%), driven by persistent West African supply shortages and steady chocolate demand. In contrast, coffee dipped to $292.50 (-0.58%) amid ample Brazilian harvests easing near-term pressures. Grains like corn ($427.75, +0.06%) and wheat ($537.50, +0.05%) saw marginal lifts from export demand in Asia, though ample global stocks temper upside potential.
Overall, commodities navigate a landscape of geopolitical-driven energy volatility and USD resilience, with supply-demand imbalances in agriculture providing pockets of strength. Investors eye upcoming economic indicators for clues on policy pivots, as persistent tensions could sustain the risk premium across the complex.
Commodities Overview
| Commodity | Price | Daily (%) | 52W High | 52W Low | RSI (14) |
|---|---|---|---|---|---|
| Cotton | $64.09 | +4.06% | $68.02 | $60.79 | 57.2 (Neutral) |
| Cocoa | $3862.00 | +1.50% | $10531.00 | $3776.00 | 29.8 (Oversold) |
| Natural Gas | $3.19 | +0.92% | $7.83 | $2.62 | 42.4 (Neutral) |
| Copper | $5.96 | +0.24% | $6.51 | $4.32 | 54.6 (Neutral) |
| Corn | $427.75 | +0.06% | $453.00 | $368.75 | 46.4 (Neutral) |
| Wheat | $537.50 | +0.05% | $578.25 | $492.25 | 59.2 (Neutral) |
| Crude Oil (WTI) | $64.66 | +0.05% | $78.40 | $54.98 | 59.6 (Neutral) |
| Gold | $5073.10 | +0.03% | $5586.20 | $3253.80 | 60.3 (Neutral) |
| Brent Oil | $69.39 | -0.01% | $81.40 | $58.72 | 59.6 (Neutral) |
| Coffee | $292.50 | -0.58% | $437.95 | $283.65 | 24.2 (Oversold) |
| Silver | $83.18 | -0.68% | $121.30 | $35.27 | 49.1 (Neutral) |
| Platinum | $2116.30 | -1.01% | $2852.40 | $1155.00 | 45.1 (Neutral) |
| Palladium | $1713.50 | -1.26% | $2169.90 | $1032.00 | 46.1 (Neutral) |
Best Performer: Cotton
Cotton is currently trading at $64.09, showing a neutral trend with the RSI at 57.18, indicating it is neither overbought nor oversold. The price is above the 21-Day MA ($63.34) and 50-Day MA ($63.60), suggesting short-term bullish momentum, while the 200-Day MA ($64.80) serves as a key resistance level. The MACD at -0.49 indicates bearish momentum, though it is approaching a potential crossover, which could signal a shift. Short-term outlook appears cautiously optimistic if it can break above $64.80; however, downside risk remains if it falls below the 21-Day MA, potentially targeting the 50-Day MA as support.
Worst Performer: Palladium
Palladium is currently trading at $1713.50, indicating a bearish trend as it is below both the 21-day MA ($1831.71) and the 50-day MA ($1743.09). The 200-day MA at $1339.85 provides a long-term support level. The RSI at 46.08 suggests a neutral stance, with no immediate overbought or oversold conditions. The MACD at -17.91 reinforces the bearish momentum, indicating potential downward pressure. Key resistance is seen at the 50-day MA, while support could be tested near the 200-day MA. In the short term, if prices remain below the 50-day MA, further declines may ensue, with focus on the 200-day MA for potential support.
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