Platinum futures drop to their lowest level in a month, RBOB Gasoline, Wheat Futures Close To 10-month Lows
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Summary:
- A hawkish Fed is causing investors to shy away from non-yielding assets.
- Ships transporting Ukrainian grain out of Black Sea ports continued to run without a hitch.
- RBOB Gasoline.
Platinum Futures touching one-month lows
Late in August, platinum futures experienced a decline to below $880 per ounce, the lowest level in a month, and followed other precious metals as hawkish comments from Federal Reserve policymakers boosted demand for the US dollar and scared investors away from non-interest-bearing assets. A global economic slowdown's effect on the auto industry's outlook, which lowered demand for autocatalyst components, also put pressure on prices. In July, car registrations were down year over year in the UK, Germany, and Italy, while declines were seen in the US and Canada according to June statistics.
Platinum Oct ‘22 Futures Price Chart
Wheat futures remain close to 10 month lows
Late in August, with a lack of certainty over the weather in the US's growing regions, Chicago wheat futures eked out a small gain. Despite this, prices remained near to the 10-month low reached last week and were far lower than they were before Russia invaded Ukraine, as ships transporting Ukrainian grain out of Black Sea ports continued to run without a hitch. It is anticipated that Ukraine will sell more than 20 million tonnes of grain that are said to have collected in port silos since its invasion began on February 24 in addition to freeing up critical storage space for the next wheat harvest. Meanwhile, the USDA raised the world's supplies upward in its most recent WASDE report, boosted by projections for record production in Russia and higher output from China and Australia. The outlooks for US supplies were also upgraded because strong spring wheat more than made up for declines in winter and durum wheat.
Wheat Futures Price Chart
RBOB Gasoline
According to AAA, the national average cost of gas in the United States has decreased for 70 days in a row to $3.89 a gallon. However, buyers shouldn't get complacent and believe that this streak will continue all the way to the end of the year. And one energy trader predicts that gas prices will rise once more, especially as we head into the fall and winter.
RBOB Gasoline Sep ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
