Commodity market foresight is featured with our new 2022 Futures Outlook Guide, a complete resource for strategy and insight to help inform your commodity futures trading in 2022. Through detailed research, learn how markets are predicted to perform in the new year with an in-depth performance review of key markets, including Grain, Energy and Metals.
2021 was a weird year for everybody across the globe. The Covid-19 pandemic impacted every aspect of business and life and the markets were no different, with a crazy run on inflation, fluctuating metals markets, rising energy costs, the ongoing situation with Russia, and so much more. Our 2022 Futures Outlook breaks down everything that happened in 2021 and uses it to create a detailed outlook and prediction of how 2022 will look.
2022 Grain Outlook
As the Covid-19 pandemic carried on through 2021 we saw quite the interesting year for grains and that trend looks to continue in 2022. Soybeans remain trending up, but that trend could have a ceiling depending on weather improvement in South America. Piggybacking off the weather in South America, corn also remains in an uptrend going into 2022 due to damaged supply in South America. As always, Chinese demand will be a major impact and trend to watch across all grains.
- We are expecting to see better soybean demand from China in 2022 despite the lower than expected numbers toward the end of 2022.
- The expected drop in corn production out of South America is propping up expected U.S. exports despite less planting acreage.
- Wheat is being impacted by poor crop conditions and inflation. Sluggish demand and the weather are something to keep an eye on in 2022
2022 Metals Outlook
2021 was a rather up an down year for gold and silver despite consistent inflation signals. Many believe the Fed will be handcuffed when it comes time to raise rates in 2022, and when you couple that with the rising cost of energy, it could create a rather advantageous marker for gold in 2022. Precious metals will not be immune to flight qualities, but we could see other fundamental factors become driving forces. Inflation, higher costs of clean energy, bitcoin, and other factors are players to watch that may impact the gold market drive prices higher in 2022
- Production, mining, and supply numbers for precious metals and how those numbers will impact prices
- Precious metal demand and outside factors that may influence numbers and drive prices higher
- ETF holdings
2022 Energy Outlook
All things considered, 2021 was a pretty big year for the energy markets. Going forward, we may see crude oil fall from excessively high levels during the back end of 2022 as supply catches up with demand. Natural Gas inventories are low and we will probably see continued price increase well into 2022. With the Covid-19 pandemic still surging on it will be interesting to see how the energy markets react in 2022.
- Crude oil demand is expected to outpace supply at least throughout the first quarter
- As natural gas demand heats up and supply is still below normal levels, there is potential for profitability in this sector
- The ongoing situation in Russia will have a major impact on natural gas prices. Its something that all traders need to keep an eye on