Summary:
- Elevated interest rates continue to drive platinum prices down.
- Supply concerns around wheat drive prices.
- US Gasoline prices fall to pre-Russia’s invasion of Ukraine levels.
Platinum touching lowest levels since November 2020
As global interest rates are expected to continue rising and should remain high for a prolonged period of time, even if it slows growth, platinum futures extended losses to below $850 per ounce, closing in on their lowest level since November of 2020. They have also been tracking other precious metals lower. The fed funds rate has already increased by 225 basis points since March at the Federal Reserve, the most potent central bank in the world. Fed policymakers are now advocating for rises to continue at least until the level of 4% in early 2019. Additionally, despite expectations that they would subside in the second part of the year, ongoing shortages and supply chain problems hurt the auto industry and lower demand for autocatalyst components.
Platinum Oct ‘22 Futures Price Chart
Wheat futures remain elevated
Chicago wheat futures saw a strong increase at the end of August after hitting a nine-month low in the middle of the month due to supply issues and increasing demand. According to government figures, Ukraine will harvest close to 20 million tonnes of wheat this year, down from 32.2 million the year prior as a result of weaker yields and the loss of farmed area to Russian forces during their invasion. Additionally, the nation intends to free up storage space for the upcoming harvest by selling the roughly 20 million tonnes of grain that are said to have collected in port silos since its invasion began on February 24. Meanwhile, US heatwaves cut corn harvests, further straining wheat supplies.
Wheat Futures Price Chart
RBOB Gasoline
On Wednesday, wholesale gasoline prices in the United States plummeted to their lowest levels since before Russia invaded Ukraine, indicating that motorists in the world's largest energy consumer will soon witness cheaper pump prices. Markets for crude oil futures and gasoline have been kept in check by worries about a worldwide recession and a record level of emergency oil sales from national stockpiles.
RBOB Gasoline Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
