Platinum Futures Nearing 21-month Lows, Wheat, RBOB Gasoline Prices Falling
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Summary:
- Weaker demand prospects for platinum outshine supply concerns.
- Russian grain and fertilizers will not be sanctioned by the US.
- RBOB Gasoline.
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Platinum Prices are hitting 21 month lows
Platinum prices are nearing 21 month lows as concerns around weakening demand outshone supply concerns. Higher than expected inflation numbers drove up expectations for more aggressive monetary policy tightening and heightened fears of a global economic recession. In addition, the demand from the top-consumer, China, is expected to fall in the wake of newly imposed lockdown regulations, which is also expected to hurt economic activity. At the same time, supply from Russia is expected to remain subdued due to the war in the Ukraine.
Platinum Oct ‘22 Futures Price Chart
Wheat futures prices returning to normal levels
Chicago Wheat futures hit a one week high on July 20th but have since returned down to somewhat normal levels that were seen before Russia invaded the Ukraine amidst prospects of higher supplies. USDA forecasts show the levels predicted that supply, exports and ending stocks in the US are going to increase sharply and a decrease in consumption around the world. In addition, strong Russian harvest and lower export taxes expectations aided in the bearishness, this eased shortage relief when the US announced that Russian grains and fertilizers will not be sanctioned.
Chicago Wheat Sep ‘22 Futures Price Chart
RBOB Gasoline
Gasoline futures fell to levels that have not been seen since April 25th, this fall comes in the wake of concerns around weakening demand. In addition, according to the EIA, domestic inventory levels increased well above market expectations. Gasoline consumption levels are standing around those of the first year of the pandemic, but lower than every year going back to 2000.
RBOB Gasoline Aug ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
