Summary:
- G7 nations decide to cap Russian oil prices.
- Demand for silver is diminishing.
- Corn up throughout 2022.
Brent Crude Oil Prices
Following OPEC+'s surprise agreement on a modest oil production cut to sustain prices that have fallen due to concerns about a projected worldwide recession-driven decline in demand, Brent crude futures increased past the $96 per barrel threshold. In order to deal with macroeconomic headwinds and counter a potential production increase from Iran, the oil cartel will restrict output by 100,000 barrels per day beginning in October, or around 0.1% of world demand. The market action followed the G7 nations' decision to cap the price of Russian oil in order to limit Moscow's ability to finance its conflict in Ukraine.
Brent Crude Oil Futures Price Chart
Silver futures touched below $18 per ounce
In September, silver futures dropped below $18 per ounce, reaching lows not seen in more than two years as the Federal Reserve's hawkish signals prompted investors to switch from metal to the US dollar. The dollar reached over 20-year highs as Fed Chair Jerome Powell highlighted the US central bank's aim of reducing inflation down to the 2% threshold and stated that borrowing costs will remain at a restrictive level for a protracted period even if it hampers GDP. Another factor adding to the flight from precious metals is that the European Central Bank is reportedly considering a larger 75 basis point rate hike to combat inflation at its policy meeting next week. The appeal of storing non-yielding bullion is diminished by increased interest rates, despite the fact that it is widely seen as a hedge against inflation and economic uncertainty. August is expected to end with silver down roughly 12%.
Silver Dec ‘22 Future Price Chart
Corn Futures up 10.43%
Since the start of 2022, corn prices have climbed by 61.89 USd/BU, or 10.43%, according to trading on a contract for difference (CFD) that monitors the benchmark market for this commodity.
Corn Dec ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
