Commodity market news on March 3, 2022

SMALL INDUSTRY NEWS

WORLD'S GOODS HIGHLIGHTS DAY 03.03

Rubber prices in Japan in particular and Asia in general increased to the highest level in the past 8 months due to the rapid increase in oil prices since the beginning of the year, while showers in Thailand raised concerns about shortage of rubber. bow. Manufacturers of rubber gloves tend to stockpile raw materials due to the expectation that output from Thailand in the coming months may decrease due to the changing seasons.

GOODS MARKET NEWS TODAY

World commodity prices hit a record high amid escalating Russia-Ukraine tensions

World commodity prices are showing new record levels in the past decade, especially those related to Russia and Ukraine - two countries at war. The instability in commodity markets has multiplied as the West seeks to isolate Russia through the global financial systems, affecting trade and import and export activities. Commodities hardest hit are crude oil, natural gas, metals and wheat.

Crude oil prices have seen historic gains since September 2014 until now, surpassing $100 a barrel last week as tensions between Russia and Ukraine escalated. The market is concerned that the war could affect crude oil supplies from Russia as the country is the world leader in oil exports. Russia is also the top 3 supplier of natural gas in the world. Europe is currently dependent on nearly 40% of gas supplies imported from Russia. The increase in Western sanctions has also caused the price of natural gas to increase by nearly 18 percent in the past five days alone. Prices of metals such as aluminum and titanium also increased by over 30% over the same period last year.

One of the agricultural commodities that has suffered a sharp increase in prices from this crisis is wheat. Both Russia and Ukraine are among the world's top wheat exporters, accounting for about 15% of total global production each year and about 30% of wheat exports each year. Wheat prices in the US recorded an increase of nearly 20% in the past week and increased about 30% year-on-year.