Don't Worry Coffee Lovers! The Price Of Coffee Futures Falling Amidst Current Market Conditions, Crude Oil (WTI) Recovers Slightly, Palladium Prices Show Steady Downward Price Trend
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Summary:
- Coffee futures are struggling to remain stable amidst the current market conditions.
- Crude oil prices could rise after poor performance this past week.
- Increased import tariffs on Russian Palladium to the U.K should drive the price up.
Weather relief in major producing regions drives the price of coffee futures down.
Coffee futures have been falling over the past week or so. The price fall comes as a result of the strengthening US Dollar and weakening Brazilian real is pushing prices down, the relief of dry weather conditions is also a bearish signal for coffee futures prices. The demand for coffee is also under pressure with the lockdowns in China continuing, and the war between Russia and the Ukraine causing demand in these two regions to fall. The market has been in a slump this week which could be another reason for the price to fall.
There are still concerns around supply of coffee worldwide, a possible cause of the almost 3% increase the future has seen today.
Coffee Jul ‘22 Futures Price Chart
Crude Oil WTI increases today after poor performance within the past week
The price of Crude Oil Futures have been following the market trend this past week, dropping to below $100. The rise today comes as concerns around supply in the wake of the European Union Oil embargo on Russia increase. Oil producers warned of their concerns around not being able to fill the oil gap when demand returns back to normal levels.
WTI Jun ‘22 Futures Price Chart
Palladium prices show steady downward price trend
Palladium prices are falling with the current market sentiment, the prices rebounded slightly after the U.K announced the increase in the tariff on Palladium imports from Russia. This move will cause further Palladium supply issues, however, the price is still falling.
Palladium Jun ‘22 Futures Price Chart
Sources: finance.yahoo.com, barchart.com
