Aggressive Fed Increases The Opportunity Cost OF Holding Silver, WTI Crude Oil Prices, Corn: Traders Weigh Weak Demand & Tight Supply| FXMAG.COM

Summary:

Aggressive Fed turning investors away from silver
Lower demand prospects outweigh tight supply concerns for WTI Crude Oil.
Commodity traders are watching weather in top growing corn regions.

Silver Prices hitting July 2020 lows.

Silver prices are staying below the $20 mark per ounce, a level that has not been seen since July 2020. The price decline comes in the wake of the Federal Reserve’s committing to aggressive monetary policy tightening and raising interest rates further, this move causes investors to short the non-yielding metal. The Fed has set markt expectations for back-to-back 75 bps rate hikes in July. This move has Put a floor under prices where lingering concerns about slowing economic growth, mainly in Europe, as surging gas prices threaten the outlook for the Euro bloc.

Aggressive Fed Increases The Opportunity Cost OF Holding Silver, WTI Crude Oil Prices, Corn: Traders Weigh Weak Demand & Tight Supply - 1 Silver Sep ‘22 Futures Price Chart

Lower demand prospects outweigh tight supply concerns for WTI Crude Oil

The price of crude futures are expected to close low on Friday as concerns around a global recession and its impact on the demand for crude oil outweighs the concerns around tight-supplies. The US oil benchmark has declined by 5% this week, tracking a broader decline in commodity markets in the wake of restrictive monetary policy among major economies threatening a global recession. Crude prices are still up 35% this year as global economic recovery coincided with Russia’s invasion in the Ukraine.

Aggressive Fed Increases The Opportunity Cost OF Holding Silver, WTI Crude Oil Prices, Corn: Traders Weigh Weak Demand & Tight Supply - 2 WTI Crude Aug Futures Price Chart

Corn prices

Corn futures prices are currently hovering as the market weighs up favourable weather conditions and weak demand over tighter supply prospects. Weather conditions in top corn growing regions are being watched closely by traders. On the demand side, the combination of weak economic global data and aggressive monetary tightening from central banks is raising fears of a economic slowdown.

Aggressive Fed Increases The Opportunity Cost OF Holding Silver, WTI Crude Oil Prices, Corn: Traders Weigh Weak Demand & Tight Supply - 3 Corn Dec ‘22 Futures Price Chart