Summary:
- Oil prices fell for the fourth consecutive month in September.
- A global economic downturn is also affecting bullion investments.
- Corn futures rise at the start of the week.
Brent Crude Oil weighed down by economic recession concerns
In response to growing rumors that OPEC+ would consider reducing output by up to 1 million barrels per day at a meeting later this week to support prices, Brent oil futures jumped more than 4% near $89 per barrel on Monday. After lowering output by 100,000 bpd in August to address macroeconomic headwinds, this action will represent the cartel's second consecutive monthly drop. As aggressive monetary tightening by major national economies fuelled concerns about a worldwide economic downturn and reduced energy demand, oil prices fell for the fourth consecutive month in September. Oil prices were also affected by the Covid-related uncertainty in China, the world's largest crude importer, and a strong dollar that increases the cost of goods with US dollar prices for foreign customers.
Brent Crude Oil Futures Price Chart
Hawkish Fed driving investors away from Silver
The price of silver in futures contracts was $19.30 per ounce, falling further from the one-month high of $19.8 reached in mid-September as renewed dollar demand and the expectation that the Federal Reserve will maintain its current policy of low interest rates for an extended period of time drove investors away from bullion. The Fed predicted that borrowing costs might increase to as much as 4.6% by March 2023 and increased its fund rate by 75 basis points for the third time in a row. With swaps pricing bets that its deposit rate will grow to 3% by May 2023, the ECB is likewise anticipated to rapidly raise its interest rates. A global economic downturn is also affecting bullion investments, as well as jewelry sales from China and India, the world's two largest consumers of technology and autos.
Silver Dec ‘22 Futures Price Chart
Corn prices rise to start the week
The price of corn is rising to start the week. Close observation of the Ukraine-Russian conflict's escalation is necessary. Trading on a contract for difference (CFD) that reflects the benchmark market for this commodity shows that corn has grown 92.12 USd/BU or 15.53% since the start of 2022.
Corn Dec ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com, barchart.com
