Recession Fears Are Affecting Brent Crude Prices, Silver Price vs A Hawkish Federal Reserve, Corn At 8-Week Highs

Summary:

• Fears of a global recession are expected to dampen energy demand.
• Aggressive Fed prospects driving silver demand down.
• Hot weather conditions affecting corn growing prospects.

Read next: Aggressive Fed Increases The Opportunity Cost OF Holding Silver, WTI Crude Oil Prices, Corn: Traders Weigh Weak Demand & Tight Supply 

Concerns around demand driving Brent Crude Oil Prices down

Brent Crude Oil futures fell during Monday trading after posting a loss last week in volatile trading in the wake of fears around a global recession and new COVID 19 virus restrictions in China, both of which outweighed fears around supply. Fears of a global recession are expected to dampen energy demand and continue to rule over market sentiment as major central banks continue to fight inflation through aggressive monetary policy interest rate hikes. In addition, a new omicron variant of COVID-19 has been discovered in Shanghai and has heightened fears of further restrictions. At the same time, market participants remain unsure about the western nations plans to cap Russian oil prices as Russian President Vladimir Putin warned that further sanctions could lead to "catastrophic" consequences within the global energy market.

✕ Brent Crude Oil Futures Price Chart

Silver prices hover around $20 per ounce

Silver prices are still sitting around the $20 per ounce mark, a level that has not been seen since July 2020. The price drop comes in the wake of stronger bets of a more aggressive Federal Reserve to increase interest rates in an attempt to reign in sky-high inflation. Silver is normally used as a hedge against inflation, however as treasury yields rise, the opportunity cost of holding silver rises.

✕ Silver Sep ‘22 Futures Price Chart

Corn futures rose to 8-week highs

Corn Futures have risen on Monday to 8-week highs and not far from the 10 year high hit in April. The price rose in the wake of concerns around tighter supplies amid an already short supply market that has been caused by the Russia-Ukraine war. Hot weather conditions in the US and European growing belt have nullified the price drop during the last trading week. At the same time, Chinese import demand also increased.

✕ Corn Dec ‘22 Futures Price Chart

Sources: finance.yahoo.com, tradingeconomics.com