Coffee Supplies Remain Tight, Supply and Demand Concerns Are Easing For Palladium , WTI Crude Oil Nearing March High

What Did Support GDP? | Should Eurozone Worry!? Energy Prices May Weaken Production

Summary:

  • Markets await the US crude inventory report.
  • Disappointing Brazilian coffee supplies.
  • Expectations that the palladium market will close in balance at the end of 2022

Read next: (XAUUSD) Gold Should Be Bullish, NGAS Reaches Highest Price Since August 2008, Cotton Crop Planting Is Ahead Of Schedule 

WTI Crude Oil prices rising as supplies tighten further

On Wednesday, WTI Crude oil futures prices are nearing the near 14 year high that was hit in March, this price rise comes in the wake of expected increase in demand as China comes out of lockdowns, tight global supplies and the summer driving season in the US. The markets are also awaiting a report that will indicate the official US crude inventories, which is expected to have fallen, highlighting the tightness in crude supplies, globally.

The CEO of global commodities trader, Trafigura said that the energy markets were in a “critical” state due to sanctions placed on Russian oil inlight of their invasion of the Ukraine which has just built on already tight supplies which were created by years of under-investment.

Coffee Supplies Remain Tight, Supply and Demand Concerns Are Easing For Palladium , WTI Crude Oil Nearing March High - 1 WTI Crude Jul ‘22 Futures Price Chart

Coffee prices volatile amidst changing supply and demand concerns

Coffee futures prices hit a peak on June 1st amidst general real strength and concerns over tight supplies. Coffee dealers indicated to traders that the market is well supported by limited flow from Brazil and Central America, the top Brazilian grower lagging on its historical average. The concerns around coffee supplies and demand are driving the futures prices.

Coffee Supplies Remain Tight, Supply and Demand Concerns Are Easing For Palladium , WTI Crude Oil Nearing March High - 2 Coffee Sep ‘22 Futures Price Chart

Palladium prices are normalising

Palladium prices have been falling consistently over the past week due to easing concerns around both demand and supply. The world's largest palladium producer, Nornickel, expects the palladium market to close in balance at the end of 2022. The company also promised they would continue producing in order to meet its obligations, despite logistic obstacles.

In addition, global supply demand is expected to increase by only 3% in 2022 as Covid-19 lockdowns and continuing supply chain bottlenecks will likely delay recovery of chip supplies until at least 2023, thus undermining car production.

Coffee Supplies Remain Tight, Supply and Demand Concerns Are Easing For Palladium , WTI Crude Oil Nearing March High - 3 Palladium Sep ‘22 Futures Price Chart

Sources: finance.yahoo.com, tradingeconomics.com

What Did Support GDP? | Should Eurozone Worry!? Energy Prices May Weaken Production

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.