Concerns Around Increasing Demand and Tightening Supply For Platinum, RBOB Gasoline, West Is Unlikely To Ease Sanctions On Russia Causing Wheat Supply Concerns Persist

Russian Wheat Continues To Be Offered At About The Cheapest Prices | The ECB Will Be Data-Dependent

Summary:

  • Sanctions on Russia and protests in South Africa are causing problems for platinum exports.
  • As shortage concerns continue, the price of wheat futures continue to rise.

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

Platinum faces a future of tight supplies

Platinum futures rose above $1000 per tonne during the trading week, the highest price in over 2 months. The price rise comes in the wake of concerns around tight supplies and the demand recovery for the biggest platinum consumer, China. China’s platinum consumption is due to increase as the government lifts most of the Covid-19 health restrictions in Shanghai and announced support measures to help boost the economy. In addition, supply chain issues are persisting as the war in Eastern Europe continues and more sanctions are being placed on Russia, the top exporter of platinum.

South Africa’s production of platinum is also set to fall amidst risks of extended strikes, as workers continue to protest for wage-negotiations.

Concerns Around Increasing Demand and Tightening Supply For Platinum, RBOB Gasoline, West Is Unlikely To Ease Sanctions On Russia Causing Wheat Supply Concerns Persist - 1 Platinum Jul ‘22 Futures Price Chart

West unlikely to ease sanctions on Russia, wheat supply concerns persist

As shortage concerns continue, the price of wheat futures continue to rise. The expectations of higher trading activity from Ukraine remained low as the west is unlikely to relax the sanctions on Russia, meaning Putin is unlikely to open Ukrainian ports and allow trade.

Investors are remaining alert to any possible changes in India's export ban that was passed in May, following news that India’s government may allow exporters to ship some of the wheat that is currently stuck in cargos.

Concerns Around Increasing Demand and Tightening Supply For Platinum, RBOB Gasoline, West Is Unlikely To Ease Sanctions On Russia Causing Wheat Supply Concerns Persist - 2 Wheat Sep ‘22 Futures Price Chart

RBOB Gasoline

Prices of RBOB gasoline continue to rise as the concerns around energy supplies persist, globally. The continuing sanctions on Russia, is causing supply insecurity as the US enters into its summer driving season, driving demand up.

Concerns Around Increasing Demand and Tightening Supply For Platinum, RBOB Gasoline, West Is Unlikely To Ease Sanctions On Russia Causing Wheat Supply Concerns Persist - 3 RBOB Jul ‘22 Futures Price Chart

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Sources: finance.yahoo.com, tradingeconomics.com

Russian Wheat Continues To Be Offered At About The Cheapest Prices | The ECB Will Be Data-Dependent

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.