Home » Food commodity prices dropped in April after reaching an all-time high – UN FAO
Commodities Market Roundup May 17:
Prices of industrial commodities are dropping, not rising, because of the recession.
According to the UN Food and Agriculture Organization (FAO), food commodity prices dropped in April after reaching an all-time high. A slight drop in vegetable oil and cereal prices led to the decline. Get the updates on trending commodities below.
Brent crude oil was up 91 cents at $115.15 a barrel as of 16:00 GMT, while US oil prices were higher by 77 cents at $114.97 a barrel.
Gas prices jumped 4% in the futures market.
As of writing, the XAU/USD pair is trading at $1820.76 in the North American session.
Crude oil prices rise to a new monthly high ($115.58) despite the Organization of Petroleum Exporting Countries warning of a slowdown in global demand. However, since the organization plans to adjust the overall monthly production upward by 0.432 mb/d for June 2022, limited supply may keep the oil price afloat for most of the year.
OPEC is expected to continue producing at its current level in the coming months based on a statement in the Monthly Oil Market Report (MOMR) that in 2022, oil demand growth will be down by 0.3 mb/d to average 3.4 mb/d, taking into account global GDP declines and a resurgence of the Omicron variant of COVID-19 in China.
As Indonesia assumes the G20 Presidency, the Energy Ministerial under its leadership will be an essential opportunity to highlight natural gas’s crucial role in meeting G20 energy needs and emphasize its importance when the World is trying to “recover together – recover stronger.”
With its vital role in providing energy to a growing world population while improving air quality and helping to mitigate climate change, natural gas is expected to jump from 23% to 27% of the global energy mix by 2050.
Due to positive market mood and high US Treasury yields, gold spot price slumps after encountering a tough resistance near the 200-day moving average (DMA) at $1837.57. However, the 200-day moving average held nicely and pushed gold spot price towards the two-year-old upslope trendline around $1820,25. As of writing, the XAU/USD pair is trading at $1820.76 in the North American session.
Gold’s price remains under downward pressure once XAU/USD exceeds the 200-day moving average (DMA). It was previously attempted to overcome the DMA, but it was unsuccessful. Though XAU/USD is defensive, it is trading in normal ranges. If the pair does not close above the two-year trendline around $1820-25, it opens the door to further losses.
Stochastic signals a long-term price rise, suggesting that breaking 786.00 will halt the expected rise, pressuring the price to drop to the 777.20 area again. Today’s trading range is predicted to be between 786.00 support and 800.00 resistance