Recession Fears Continue To Weigh On The Commodity Market: Coffee, Palladium & WTI Crude

Summary:

• WTI Crude Prices falling.
• Concerns about weakening coffee demand.
• Fears of fresh Covid lockdown measures in China persist.

Read next: Demand Is Rising For NGAS, Strong Supply Prospects For Cotton, Investors Turn To The US Dollar As An Inflation Hedge Instead Of Gold 

WTI Crude Oil Falling

WTI Crude futures tumbled around 8% during Tuesday's trading day as traders continued to weigh weakening demand, recession fears and China’s most recent covid-19 outbreaks. In addition investors are awaiting the latest US Inflation data release which could bolster the Federal Reserve's aggressive monetary policy tightening and thus heighten fears of a recession.

At the same time US crude inventories have reportedly risen by 4.76 million barrels during the previous trading week.

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WTI Crude Oil Futures Aug Price Chart

Coffee Prices have been falling

Coffee Futures have been trading lower amidst fears that the economic slowdown will negatively affect demand whilst supply remains stable. Coffee exports have risen, however Brazil is behind their year-on-year harvest.

✕ Coffee Sep ‘22 Futures Price Chart

Palladium prices 35% down

Palladium prices are 35% down from their all time high hit in March earlier this year in the wake of new concerns around weak demand from China which has overshadowed the persisting fears around tight supplies. A new omicron variant found in China has heightened fears of fresh Covid lockdown measures in Shanghai which could further damage economic growth and put a dent in the demand for the metal from the world's largest consumer.

✕ Palladium Sep ‘22 Futures Price Chart

Sources: finance.yahoo.com, tradingeconomics.com