Platinum Weighed Down By A Strong US Dollar, Wheat Supported By Supply Concerns, RBOB Gasoline On The Rise Again
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Summary:
- 2022 has seen platinum prices drop 10.71%.
- Wheat futures close to 3-month highs.
- RBOB Gasoline rises after 100 days of declines.
Platinum futures under pressure from strong US Dollar
Since the start of 2022, platinum prices have dropped by 103.12 USD/t oz., or 10.71%, according to trading on a contract for difference (CFD) that monitors the benchmark market for this commodity. Gold, silver, platinum, and palladium were all affected negatively by the surging US dollar (DXY), which rose to new 20-year highs on Wednesday morning.
As demand from the Chinese automobile industry remained poor and is now being further pushed by a rising dollar, platinum fell 1.1% to $838 per troy ounce (DXY). Additionally down 1.4% to $2,056 per troy ounce was palladium.
Platinum Jan ‘23 Futures Price Chart
Concerns around a wheat shortage driving prices
As fresh escalation threats about the Russian invasion of Ukraine stoked concerns about a shortage, Chicago wheat futures increased and came close to reaching the nearly three-month high from late September. Shortly before holding referendums to join Russia in four regions of Ukraine, President Putin ordered Russia's first military mobilization since World War II. Concerns were raised about Moscow's ability to halt the UN-negotiated safe trade route from Ukrainian Black Sea ports, which would eliminate the newly resumed supply from one of the world's largest wheat exporters and producers. News that increased export levies from the Kremlin would restrict sales of the nation's record harvest this marketing year contributed to further price increases.
Chicago Dec ‘22 Wheat Futures Price Chart
RBOB Gasoline futures
In response to a hurricane barreling into Florida, President Joe Biden issued a warning to oil corporations not to raise gasoline prices. This is the second time this week that he has expressed concern over rising pump costs. Regular gasoline is becoming more expensive on average in the United States. After falling for nearly 100 consecutive days throughout the summer driving season, the price has now started to rise once more.
RBOB Gasoline Oct ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com, capital.com
