Commodities Market Roundup May 19 2022:
- Amid the 85th day of the Russian-Ukrainian war, Secretary-General of the United Nations António Guterres warned that energy price hikes and the conflict in war-torn Ukraine are another ‘wake-up call’ for accelerating the transition to renewable energy.
- Brent oil may make a weak return towards $110.64 per barrel after testing support at $107.79.
- In Bolivia, MONARO PRECIOUS METALS CORP. is excited to announce the start of the first 5,000-meter diamond drill program.
Table of contents
Energy
On Thursday, Indonesia’s parliament approved a government request for approximately $23.8 billion in energy subsidies to keep some energy prices unchanged amid a global inflation surge.
Amid the 85th day of the Russian-Ukrainian war, Secretary-General of the United Nations António Guterres warned that energy price hikes and the conflict in war-torn Ukraine are another ‘wake-up call’ for accelerating the transition to renewable energy.
A long-term future can only be ensured by using renewable energy. According to a Department of Economic and Social Affairs report of the United Nations, a hot war, rising energy, food, commodity costs, skyrocketing inflation, and tightening monetary policy stances by major central banks have all adversely affected the global economy.
Brent
Brent oil may make a weak return towards $110.64 per barrel after testing support at $107.79. From $101.30, it is presumed that the current fall is against the uptrend. From the high of $114.84 on April 18 and the high of $114 on May 5, both corrections were very deep, retracing about 86.4% of the uptrend.
A relation of this nature suggests that the current correction can be extended to $103.26. The Brent oil price may fall from $110.27 to $108.56. The realistic wave c target will be $106.71, corresponding to 161.8% of the projection level.
The oversold market on Wednesday has caused oil to bounce back a bit. However, since the trending signals are still bearish, it seems unlikely that the bounce will extend beyond $110.64. An analysis of the daily charts reveals a retracement target of $106.89, which is close to $106.71, based on the fall from $139.13.
Crude oil
US crude futures traded 2% lower at $104.94, while Brent futures declined 1.6% to $107.38.
Since 2014, crude and most risky markets have declined amid worries that the surge in inflation and the accompanying tightening of monetary policy will curtail consumer spending, severely hampering future economic growth.
On Thursday, there were fresh signs that the US economy is starting to cool off, as layoffs hit a 10-week high and a closely watched survey of manufacturing activity indicated that things are worsening. In addition, Federal Reserve Chairman Jerome Powell warned earlier this week that some economic pain could bring inflation down.
Natural gas
Early Thursday, natural gas futures fell after overnight modeling pointed to lower heat expectations heading into early June. At the time of writing, the June Nymex contract was down 26.9 cents to $8.099/MMBtu, while the June ICE contract was 26.7 cents to $8.188.
Precious metals
In Bolivia, MONARO PRECIOUS METALS CORP. is excited to announce the start of the first 5,000-meter diamond drill program.
By 2027, the global precious metal catalysts market will generate $22.6 billion. Globally, the Precious Metal Catalyst Market is estimated at $14.3 Billion in 2020 and is projected to grow at a significant CAGR of 6.7% to reach $22.6 Billion by 2027. Furthermore, it is estimated that Platinum’s market value will reach $8 billion by the end of the analysis period at a 7.8% CAGR.
Gold
The gold price shows gains in the US trading Thursday at midday. A sharply lower US dollar index on this day and a slight drop in US Treasury yields helped lift precious metal prices. Metals market bulls are also benefiting from a wobbly US stock market. During the last trading session, June gold futures were up$25.40 at $1,841.30.
Agriculture
The UN Secretary-General Antonio Guterres warned this week that “there is an imminent food shortage” could trigger mass malnutrition, mass hunger, and famine for tens of millions of people. As a result, agricultural commodities prices are surging at breakneck speed. This is true of grains, oilseeds, meat, dairy, and sugar.
Food Price Index data from the UN Food and Agriculture Organization revealed that global ag commodity prices reached a record high in March. While the Index declined slightly by 0.8% in April, it was still up an eye-watering 30% from the previous year.
Corn
The Corn price declined sharply yesterday, surpassing our hoped-for target of 777.20 and settling below it. The prices of wheat and corn have been on the rise since the Russian invasion of Ukraine, with wheat and corn prices up around 60% and 30%, respectively.
The destruction of demand from high prices of energy commodities like oil is less likely to occur than in food commodities, especially in low- and middle-income countries that make up the bulk of global consumption. Saving money by riding the bus rather than driving is one thing.
