Commodity margin calls pose likely macroeconomic risk, Dallas Fed saysBloombergCommodity markets should be tracked for potential macroeconomic risks, Dallas Federal Reserve analysts said in the latest sign that liquidity concerns in the sector have caught the eye of central banks and regulators. “Ongoing developments in commodities should be monitored for potential impacts on financial conditions broadly,” said the note from Dallas Fed economists, including Jill Cetina, who leads surveillance and supervisory risk analysis. “The threshold for central bank intervention in unregulated markets is high,” the economists said. “While so far, commodity trading firms appear to have obtained the credit necessary to continue their intermediation activities, the recent situation highlights some vulnerabilities,” the economists said. UKRAINIAN CROPSThe outlook for spring planting in much of Ukraine has improved as Russian troops narrow their offensive to focus on eastern areas.

Source: Taipei Times April 16, 2022 20:45 UTC