Summary:

• Coffee futures prices are being affected by the ongoing Russia-Ukraine war.
• Brent Crude Oil Prices falling despite ongoing uncertainties with the Russia-Ukraine conflict.
• Gold futures prices falling as the US bond yields change once again.

Coffee futures prices showing volatility.

The futures price for coffee has fallen 2.11% since the market opened this morning. The uncertainty of the Russia-Ukraine war with no sign of slowing, has had an adverse effect on the price of coffee futures over the last while, this is represented in the graph below. There are concerns about growth and therefore supply with the Russia-Ukraine conflicts and in addition the poor rainfall in Brazil this year continues to raise concerns about supply, however the demand is also decreasing as a result of the conflicts. This relationship could be causing the volatility in this commodity.

Coffee Jul ‘22 Futures Prices

Is the Price of Brent Crude Oil Finally Falling?

Since the market opened this morning, the price of Brent Crude Oil has fallen by almost 5%. The weakening of the price comes despite the Russia-Ukraine war uncertainties and the post-covid world economy reopening. Occasionally the price of Brent Crude is adversely affected as the US Dollar strengthens, seeing as the Fed increased the U.S yields again for the seventh consecutive week, the US dollar saw more strengthening on the market today, this could be a possible reason for the price fall in Brent Crude.

Brent Crude Oil Price Chart

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Gold prices affected by US Yields once again.

This time last week gold futures had hit their high for April, however since the market opened this morning, the price has fallen by 1.96%, and is 5% down from its 18 April high. Normally gold is used as a hedge against inflation, however since the US yields increased again, the opportunity cost of holding gold and not bonds increases, driving the price of gold down further. This commodity is one to watch especially if the Fed continues to be hawkish.

Gold Futures Price Chart

Sources: Finance.yahoo.com, dailyfx.com, ndtv.com

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