Summary:
- Platinum supply is expected to decrease by 8% this year.
- Chicago wheat futures trading at their highest level since early July.
- Gasoline's 98-days of recorded decreases comes to an end.
Reduced supply and rising demand are supporting Platinum prices
In September, platinum futures remained over the $900 per ounce threshold thanks to expectations for reduced supply and indications of rising demand. The World Platinum Investment Council predicted that the entire supply will decrease by 8% this year. Meanwhile, diminishing supplies from mines and recycling, along with China's high demand for catalytic converters, helped to boost prices. Nevertheless, platinum's recovery from the 26-month low of $830 reached on September 1 was constrained by expectations of a hawkish Federal Reserve and the ensuing dollar gain.
Platinum Oct ‘22 Futures Price Chart
Wheat under strain as the conflict in the Ukraine persists
Chicago wheat futures surged to trade at their highest level since early July as fresh geopolitical worries fueled worries that key producing centers might export less grain. The Donbass separatist areas and the seized portions of Kherson will vote this weekend on whether to join Russia, as part of the Kremlin's plans to formally annexe Ukrainian territory. The actions heightened concerns that the situation between Russia and Ukraine could worsen, leading Russia to revoke the safe trade corridor from previously negotiated Ukrainian Black Sea exports. The arrangement has already drawn harsh criticism from the Russian president, who claimed that Russia had been "cheated" and vowed to change the terms of the agreement, which would impede delivery to significant importers around the globe.
Wheat Futures Price Chart
RBOB Gasoline rises again
After a 98-days of recorded decreases, retail gasoline prices in the US have seen their first increase, although a very small one, indicating that customers won't see much more relief at the pump.
RBOB Gasoline Oct ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
