Summary:
- In general most commodities apart from crude oil have seen a fall over the past month.
- Crude Oil Supply facing huge pressure.
Coffee Futures Price Falling
Over the past month the price of coffee futures have been falling consistently. The harvest at the world's largest producer in Brazil has been picking up as more fields are becoming ready to harvest. The harvest pushes supply into the market, driving the price down. However, coffee prices are still higher than those seen in 2021.
Coffee Jul ‘22 Futures Price Chart
Gold futures fare well today despite falling over the past month.
Despite the increase in the price of gold since the market opened this morning, the price has been falling over the past month. The hawkish Fed increasing the U.S yields week-over-week has resulted in a negative outlook overall for the price of Gold. Gold is seen as a safe-haven asset and is used as a hedge against inflation, when the Fed pushes up the yields, the opportunity cost of holding Gold increases, driving investors to sell their Gold investment and instead turn to government bonds. This drives the price of gold down.
In the past days gold has fared well against the Feds recent yield raise and has seen an increase of almost 0.4%.
Gold Jun ‘22 Futures Price Chart
Crude Oil prices continue to increase.
The price of crude oil futures have been showing a steady upward trend. As global stockpiles of crude decrease, the concerns around demand have become more worrisome. Crude prices are surging as supply falls and demand is starting to increase back to pre-pandemic levels. Washington released a large number of their crude oil reserves in an attempt to control the price, however, the price continues to rise and will likely continue on this path.
Crude oil Jun ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
