The West Is Trying To Control Brent Crude Prices, Global Corn Supply Concerns, Fed Gears Up For Another Interest Rate Hike

Corn Prices Recorded Their Biggest Weekly Gain, Gold Demand In India May Suffer A Temporary Setback

Summary:

  • Concerns around a demand-shifting global recession continue.
  • Concerns around global supply of corn have been somewhat alleviated.
  • China demand concerns and aggressive interest rate hikes.

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Brent Crude Oil Futures

Brent crude prices rose from their daily lows of about $103 to around $104 per barrel as concerns about a demand-draining global recession were dispelled by a tight global market and the potential for further supply disruptions. The West is developing a strategy to control the price of Russian crude as retaliation for Moscow's invasion of Ukraine. Additionally, despite the fact that a top US energy envoy expressed confidence that major producers have spare capacity and are likely to increase supplies, Biden was unable to win a commitment from Arab leaders to pump more oil. A persistent worry that an aggressive tightening from major central banks could plunge economies into a recession and consequently affect oil consumption kept prices in check.

The West Is Trying To Control Brent Crude Prices, Global Corn Supply Concerns, Fed Gears Up For  Another Interest Rate Hike  - 1 Brent Crude Futures Price Chart

Corn Prices

Following the USDA weekly report that indicated a steady state of the U.S. crop in its crucial pollination phase, alleviating concerns about global supplies, corn futures held close to the 8-month low level below $6 per bushel. Additionally, the agency maintained its rating of 64 percent of the American corn crop as being in good to exceptional condition from the previous week. The report also noted that while dryness lingers in western regions despite expectations for rising temperatures, weekend rainfall in the eastern Midwest benefitted crops. The USDA increased its predictions for global maize ending inventories to 313.0 million tons in its monthly report published on July 12th, an increase of 2.5 million tons from last month's forecasts.

The West Is Trying To Control Brent Crude Prices, Global Corn Supply Concerns, Fed Gears Up For  Another Interest Rate Hike  - 2 Corn Sept ‘22 Futures Price Chart

Silver Futures

As persistent concerns about demand in China and aggressive tightening by major central banks to control sky-high inflation continue to scare investors away from the non-yielding metal, silver stabilized around $18.7 an ounce, staying close to its lowest level since July 2020. Following a similar move in June, the Federal Reserve is widely anticipated to deliver a 75 basis point rate increase this week, raising borrowing costs to their highest level since 2019. Additionally, the ECB increased policy rates by 50 basis points last week, which was more than expected, and the BoE is likely to do the same thing the following week. The dollar has been pushed higher by safe-haven movements brought on by uncertainty in global growth.

The West Is Trying To Control Brent Crude Prices, Global Corn Supply Concerns, Fed Gears Up For  Another Interest Rate Hike  - 3 Silver Sep ‘22 Futures Price Chart

Sources: finance.yahoo.com, tradingeconomics.com

Corn Prices Recorded Their Biggest Weekly Gain, Gold Demand In India May Suffer A Temporary Setback

Rebecca Duthie

Remote Editor and writer Intern
FXMAG.COM

Rebecca has a bachelors degree in Investment Management, a Post Graduate Diploma in Financial Planning and is currently enrolled in a Masters program in International Management with a Specialization in International Finance.