- Concerns around tight Brent supplies outweighed concerns around a global recession dampening demand.
- Silver prices falling in the wake of an aggressive Fed.
- Traders weighed weak demand and favourable weather prospects against fears of tight supplies.
Brent Crude Oil prices are up on Monday
Brent crude oil prices are up on Monday as concerns around tight supplies outweighed concerns around a global recession dampening demand. A Reuters survey showed that output from 10 OPEC members fell during June. In addition, exports from Libya also declined below expected levels and Norway's daily output is expected to decline due to a planned strike by Norwegian energy sector workers.
Brent Crude Futures Price Chart
Silver prices reaching 2 year lows
Silver prices have been consistently declining to prices not seen since July of 2020, as they close in toward the $20 per-ounce mark. The price declines come in the wake of aggressive monetary policy tightening by the Federal Reserve to try to control high inflation levels which caused investors to turn away from the non-yielding metal. The Fed has reiterated their commitment to fighting inflation, setting expectations for a back-to-back 75 bps interest rate hike in July.
Silver Sept ‘22 Futures Price Chart
Investors weighing weak demand and favourable weather against tight supply fears
Corn prices hovered around $7.5 per bushel as traders weighed weak demand and favourable weather prospects against fears of tight supplies. More corn crop has been planted than the March recordings, the crop flourished in its early stages of development after a late start to planting, this is due to the wet and cool conditions around most of the Midwest. Meanwhile, traders are watching the weather forecasts for the coming weeks as the corn enters its pollination phase which will determine the yields during the harvest that starts in September. At the same time, aggressive monetary tightening is raising fears of economic slowdown and demand destruction is causing concerns around demand for the grain.
Corn Dec ‘22 Futures Price Chart
Sources: tradingeconomics.com, finance.yahoo.com