BLOG 2 - Wheat and Brent, end of February

 This February month, crude oil and wheat prices reflect a balanced market, but there are varied indications in supply and demand. 

Brent crude is selling at $72 a barrel. It rose in January but fell as a result of increased oil being produced globally and soft demand, particularly in China. Despite current better conditions for OPEC+ plans being favorable, considerations for raising supply in April are making market participants gloomy. Little solace is drawn from political risks associated with current tensions in trade and potential supply issues. On average, oil prices are expected to remain in the lower $70s for some time. 

Wheat futures are at $5.40 a bushel, down compared to before since there is plenty available globally. More favorable planting in the US, larger harvests in major exporter nations, and lower demand from key buyers like Indonesia and China have prompted this dip in prices. As there is plenty available and buyers are cautious, prices for wheat are expected to remain flat or dip slightly if there is unfavorable weather or there are restrictions on exports. 

Both markets are watching for economic indicators and policy decision-making. Today there can be modest movements for Brent and for wheat since sudden supply or demand movement can trigger surprise movements.