Summary:
- Soybean prices continue to show volatility as concerns around supply continue.
- Platinum prices are still trying to find a pattern.
- Copper demand drops with China in lockdown.
Soybean prices have been soaring the past month.
Over the past month we have seen the price of soybean futures rise to almost record highs. The Soybean commodity is under price pressure as a secondary backlash from the war between Russia and the Ukraine along with adverse weather conditions in Latin America and supply chain issues around the world. Since the start of the pandemic, the price of Soybean futures have doubled. There is a strong demand for soybean in the form of oil and feed for cattle all over the world, with Latin America being one of the worlds largest suppliers and is experiencing a poor harvest due to the poor weather conditions, the concerns around supply are growing, causing the prices to rise.
Soybean Jul ‘22 Price Chart
Platinum prices affected by lockdowns in China.
Platinum prices dipped in the previous trading week as a result of concerns around demand with the lockdowns in China. Since then the prices have been on the rise again as the market seems to be somewhat stabilising. As economic sanctions on Russia continue, importers are turning to new sources of Platinum such as South Africa, concerns around supply remain the main factor driving the price of platinum.
Platinum Jul ‘22 Price Chart
Copper price dip amidst lockdown in China.
Since China imposed further lockdowns in the country, the concerns around demand and supply faded for the metals futures. This created a fall in the price as the decreasing demand could take some pressure off some of the supply chain issues. China is responsible for almost half of the world's copper consumption, therefore the lockdowns had a big impact on the price of this precious metal.
Copper Jul ‘22 Futures
Sources: finance.yahoo.com, capital.com, wsj.com
