Silver futures supported by constrained supplies, Brent Crude touching January lows, corn futures
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Summary:
- Silver supported by demand optimism and constrained supplies.
- Brent crude weighed down by lack of investor confidence.
- Corn futures up more than 12% in 2022.
Silver trading near 5-month highs
Near the five-month high of almost $22 that was set on November 14th, silver futures were trading at roughly $21.5 per ounce, supported by a combination of demand optimism and constrained supplies. White metal demand is anticipated to reach a new record high globally in 2022, spurred by post-pandemic industrial and physical investment needs. The long-term picture for the commodity's demand was further improved by the global governments' commitment to green technologies. Prices were also bolstered by indications of limited supply, as New York's COMEX inventories decreased by 70% to just over 1 million tonnes over the previous 18 months. Additionally, the London Bullion Market Association stockpiles dropped to a record-low 27.1 thousand tonnes in November for the tenth consecutive month. In addition to the demand-supply dynamics, the Federal Reserve's potential for a more gradual tightening of monetary policy has given silver bulls hope.
Silver Dec ‘22 Futures Price Chart
Brent Crude fell more than 2%
On Monday, Brent oil futures fell more than 2% below $82 a barrel, reaching their lowest levels since January as huge demonstrations against China's tight zero-COvid policy undermined investor confidence and the outlook for demand. Reports that the US has given Chevron Corp. permission to restart oil production in Venezuela put additional downward pressure on oil prices. The top crude importer China is experiencing Covid-related uncertainty, and growing concerns about a global economic downturn have seized the energy markets. This is the fourth week in a row that the international oil benchmark has fallen. The G7's intention to control the price of Russian oil continued to be followed by traders, but news of a high cap on the price allayed concerns that Russia would respond by reducing production. Investors are still being cautious ahead of the OPEC+ meeting on December 4 since it is anticipated that the major producers will maintain tight supply.
Brent Crude Oil Futures Price Chart
Corn has increased more than 12% in 2022
Trading on a contract for difference (CFD) that tracks the benchmark market for this commodity shows that corn has increased 71.68 USd/BU or 12.08% since the start of 2022.
Corn Mar ‘23 Futures Price Chart
Sources: tradingeconomics.com, finance.yahoo.com
