Some EU Governments Are Still In Favour Of Banning Russian Brent Crude Oil, Investors Turning To Silver As Demand For Safe-Haven Assets Rise, Corn Prices Fall Amidst Easing Supply Concers
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Summary:
- Lockdowns in China ease causing demand for Brent Crude to rise.
- Silver prices increase as market participants seek safe-haven assets.
- Supply concerns around corn are easing.
Brent Crude Oil prices continue to rise
The combination of Beijing and Shanghai beginning to come out of Covid-19 restrictions over the weekend and the ongoing European discussions regarding banning crude oil imports from Russia are causing concerns around supply to tighten. On Monday and Tuesday an EU governments will use a summit to continue to argue in favour of an embargo on Russian crude.
The prices of Crude oil are going into their sixth straight month of gains amidst the supply concerns, as demand begins to rise back up to pre-pandemic levels.
Brent Crude Oil Price Chart
Silver prices are still on the rise
A weaker US Dollar continues to give room for the price of silver to rise. Amidst continuing geopolitical tensions and growing concerns regarding slower global growth, investors are turning more towards safe-haven assets.
Silver is considered to be a hedge against inflation, the Fed is still expected to tighten monetary policy by raising interest rates further at their next two meetings.
Silver Jul ‘22 Futures Prices
Corn prices are falling
The price of corn futures fell late in May, to the lowest value in almost six weeks amidst expectations of higher supply and the easing of trading restrictions between major producers. Beijing and Brazil reached an agreement to begin corn exports from Brazil to China, after years of talks. In addition, actual planting of corn exceeded market expectations. The easing of supply concerns is slowly driving the price of corn futures down.
Corn Jul ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
