Press Release
ICDX Commodity Outlook Q3 2022: Commodity Trends Amid the World's High Inflation Turbulence
ICDX Commodity Outlook Q3 2022: Commodity Trends Amid the World's High Inflation Turbulence
Wednesday, 20 July 2022

Jakarta, 20 July 2022 - Currently, several countries such as America, Australia, Britain, and others are experiencing inflation. For some countries, the inflation that occurred this year was the highest in the last decade. Domestic inflation continues to increase due to high supply-side pressures. This is in line with the increase in world commodity prices.

In addition, the ongoing geopolitical conflict between Russia and Ukraine is also the cause of high and increasing commodity prices. This condition causes a reduction in production and imports from these countries. As it is known that Ukraine is one of the largest suppliers of wheat in world trade, and Russia is the world's second-largest supplier of crude oil.

“The Russia-Ucarina geopolitical conflict still has a big impact on energy supply, such as energy supply from Russia to Europe which has an impact on the wider party. This conflict has an impact on increasing fuel prices which has an impact on high and rising global commodity prices, which are the needs of the community so that ultimately lead to inflation in every country," said Vice President of Research and Development, Isa Djohari.

Based on the ICDX Research and Development team, the value of crude oil itself will continue to increase so that it becomes an attraction for transactions. In the previous quarter II-2022, oil prices increased by 15.04%. It is estimated that in the third quarter of 2022, oil prices will continue to strengthen even though several factors can restrain the strengthening of these prices.

“Seeing from several existing catalysts, in the third quarter of 2022, the movement of oil prices is still bullish. However, it will not rule out the possibility that there will be sentiments that will restrain the price movement. One of them is regarding the Opec+ Production Pact which until now there is no signal to continue, where this will affect the supply in the market,” explained ICDX Research & Development, Girta Yoga.

The price of gold commodities has also become a matter of great concern and discussion lately. Inflation that occurred in various countries made the price of gold recently decline to reach the support value of $1689.93. However, in recent days ICDX Research and Development noted that gold prices have strengthened. Until Monday (18/7) yesterday, gold prices rose to touch the zone of $ 1712.82. The fluctuations that occur in the gold price are caused by geopolitical conditions and also the spread of Covid - 19.

“Based on ICDX research data, the price of gold is currently showing a downward trend. However, there is still the potential for gold prices to continue to rise if there is a policy from the Fed to restore the original economic conditions," added ICDX Research and Development Taufan Dimas Hareva.

In addition to crude oil and gold, at the beginning of the third quarter of 2022 Forex also attracted attention. Based on ICDX Research and Development, several currency prices have changed and tend to decline. Since being faced with high inflation, the fate of the US Dollar has become increasingly uncertain. To suppress inflation, the US Dollar index touched its highest point, namely in the 108 zones. In addition, inflation also occurred in one of the Asian countries, namely Japan. Inflation in Japan reached 2.5%, which is considered quite high for Japan. This inflation also has an impact on the Yen exchange rate which is experiencing weakness.

“Despite various policies, high inflation in the United States remains unavoidable. So this raises the potential that the Fed will continue to be aggressive in fighting inflation through its popular policy of raising interest rates. In addition, Japan is also experiencing inflation and this has an impact on the value of the Yen exchange rate. This inflation resulted in a weakening of the Yen exchange rate. The impact of the weakening of the Yen exchange rate for Japan will result in the price of imported commodities, manufacturing costs, and goods becoming expensive," said Research and Development, Revandra Aritama.

In addition to the above commodities, the issue of global carbon trading is also interesting to note. Indonesia itself is not currently running an organized carbon trading, but countries in Europe have implemented a Cross Border Adjustment Mechanism (CBAM).

“Gradually, this CBAM will become an alternative mechanism to prevent carbon leakage. In addition, what is expected from this mechanism is the equal treatment between producers from the European Union and abroad, which leads to the internalization of global warming costs,” said Research and Development, Allysea Subagdja.

-------------------------------------------------- ----------------------------------------------

About Indonesia Commodity & Derivatives Exchange (ICDX)

The Indonesia Commodity & Derivatives Exchange (ICDX), also known as the Indonesia Commodity and Derivatives Exchange (ICDX) is a commodity and derivatives exchange based in Indonesia. ICDX's vision is to become a global market exchange that improves national welfare, with a mission to become a benchmark for setting world commodity prices through Indonesian primary products. ICDX is an Exchange supported by its members consisting of brokers and traders regulated by BAPPEBTI. ICDX members facilitate customer transaction services which include ICDX commodity futures trading contracts. Trades on ICDX will be settled, guaranteed, and cleared by the Indonesia Clearing House. For more information, please visit www.icdx.co.id and www.ich.co.id

Media Contact

[email protected]

[email protected]

+62 812 8928 1114

ICDX Group

Midpoint Place, 22nd Floor, K.H. Fachrudin Street No. 26, Tanah Abang, Central Jakarta

Member of
© Indonesia Commodity & Derivatives Exchange (ICDX)
Join Our Monthly Newsletter
Follow Us
Contact Us
Midpoint Place, 22nd Floor, K.H. Fachrudin Street No. 26, Tanah Abang, Jakarta Pusat
+62 21 3002 7788