Summary:

• The market expects lower demand for Platinum.
• Wheat Futures are approaching near four-month lows.
• Expensive Gasoline prices are keeping summer drivers off the road.

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Platinum prices are falling

Platinum futures are touching 22 month lows as prospects of lower demand outweighed prospects outweighed supply concerns. Higher than expected US inflation data increased expectations of tighter and more aggressive monetary policy. In addition, the fresh new Covis cases in China are causing demand expectations to fall. Supplies are also expected to remain low as supply shipments from Russia disruptions continue. In addition, during June Britain sanctioned the chief executive and principal shareholder of Nornickel, Vladimir Potanin. Nornickel is the 3rd largest producer of the metal.

Platinum Oct ‘22 Futures Price Chart

Wheat supplies are expected recover

Wheat Futures are approaching near four-month lows, and extending is move away from pre-Russian invasion levels receiving support from a stronger supply outlook. The combination of a forecast that reflected a decrease in consumption for the rest of the world for the 2022/23 marketing year as well as new data from the USDA’s supply and demand report pointed to a sharp increase in the supply, exports, and ending stocks of wheat in the United States. At the same time, concerns around a worldwide recession led the consumption estimated to be revised downward.

Chicago Wheat Sep ‘22 Futures Price Chart

RBOB Gasoline

Expensive Gasoline prices are keeping more drivers off the road in the US than at the height of the pandemic. Gasoline demand tumbled last week, below the same week in 2020 and to the lowest (seasonally) since 1996. The numbers now paint a clearer picture of demand faltering amid mounting concerns over a wider economic slowdown.

RBOB Gasoline Aug ‘22 Futures Price Chart

Sources: finance.yahoo.com, tradingeconomics.com