Brent Crude Oil Futures Prices Dropping, Silver Futures Falling, Poor Corn Crop Health Driving Prices

Corn Prices Recorded Their Biggest Weekly Gain, Gold Demand In India May Suffer A Temporary Setback

Summary:

  • Brent futures prices falling.
  • Dovish fed may be improbable.
  • Corn crop health looks dim.

Brent Crude Oil consumption outlook dampened

On Monday, Brent oil futures dropped another 5% to roughly $93 per barrel, closing in on February lows of $91 reached earlier this year as worries about a protracted recession impacted on the outlook for energy consumption. China, the world's largest oil importer, saw industrial production growth fall short of forecasts, indicating a slow rebound from the stringent Covid lockdowns at the end of the second quarter. The OPEC anticipated a fall in oil consumption and an increase in oil production, which disputed the opposite views from the IEA citing gas-to-oil switching for power generation. The state-run IRNA reported that Iran could accept the EU's offer to renew the Iranian nuclear deal, giving rise to hopes for more shipments from Iran in the meantime.

Brent Crude Oil Futures Prices Dropping, Silver Futures Falling, Poor Corn Crop Health Driving Prices - 1 Brent Crude Oil Futures Price Chart

Silver Futures falling despite indications of slowing inflation

A strengthening dollar scared investors away from the non-yielding commodity, and silver futures slid from a peak of approximately $20.9 to a low of around $20 per ounce. Despite indications that inflation was slowing, the Federal Reserve's aggressive tightening agenda was still backed by the markets. Last week, a number of Fed policymakers noted that a dovish flip is improbable. For hints about the central bank's rate path, other speeches this week and the FOMC minutes release due on Wednesday are now widely anticipated.

Brent Crude Oil Futures Prices Dropping, Silver Futures Falling, Poor Corn Crop Health Driving Prices - 2 Silver Sep ‘22 Futures Price Chart

Poor Corn crop health driving prices

After the USDA's weekly report revealed poor crop health amid heatwaves in the Midwest and plains, corn futures increased to a 1-week high of almost $6 per bushel. The agency gave the U.S. maize crop a good to exceptional condition rating of 61%, significantly lower than experts' expectations and a drop from the previous week's rating of 64%. The crop that will be harvested in September is likely to suffer from the hot, dry weather that was present during key corn pollination. However, despite higher supply predictions from the USDA for 2022–2023 and negative demand prospects brought on by rising recession fears, corn is still close to its 8-month low of $5.9 set on July 5th.

Brent Crude Oil Futures Prices Dropping, Silver Futures Falling, Poor Corn Crop Health Driving Prices - 3 Corn Dec ‘22 Futures Price Chart

Sources: finance.yahoo.com, tradingeconomics.com

Corn Prices Recorded Their Biggest Weekly Gain, Gold Demand In India May Suffer A Temporary Setback

Rebecca Duthie

Remote Editor and writer Intern
FXMAG.COM

Rebecca has a bachelors degree in Investment Management, a Post Graduate Diploma in Financial Planning and is currently enrolled in a Masters program in International Management with a Specialization in International Finance.