- Platinum prices plunged amidst prospects of a weaker demand for the metal
- Wheat prices touched four-month lows on June 27th but have since recovered somewhat.
- Prospects of a recession could cause a decrease in oil demand are driving oil prices down.
Platinum prices plunged on Thursday
Platinum prices plunged amidst prospects of a weaker demand for the metal outweighed the fear of tighter supplies. As major central banks all over the world continue to raise interest rates in an attempt to control inflation despite the possibility of a recession, a slowdown in economic activity (including vehicle production) is inevitable. As the war in the Ukraine shows no signs of slowing, global platinum supplies are expected to remain subdued.
Platinum Oct ‘22 Futures Price Chart
Wheat prices supported by increased importer demand
Wheat prices touched four-month lows on June 27th but have since recovered somewhat, supported by increased demand from importers. In the wake of a muted demand period, state tenders from Bangladesh, Jordan and signs of future tenders from Egypt all contributed to lifting buying expectations. However, currently there is a record supply of wheat from Russia and a strong harvest that was stronger than expected in North America. Investors continue to monitor the possibility of seaborne exports from Ukraine, after Italian Prime Minister Draghi hinted that trade corridors may open soon.
Wheat Sep ‘22 Futures Price Chart
Oil futures prices fell on Thursday in the wake of a weekly increase in U.S gasoline and distillate supplies raising worries over the demand outlook, and major oil producers are expected to remain on track to boost production in August. The market uncertainty over future OPEC+ output and recession fears which could cause a decrease in oil demand are driving oil prices down.
RBOB Gasoline Jul ‘22 Futures Price Chart
Sources: finance.yahoo.com. tradingeconomics.com