Close: London Session | Forex, Metals, Oil, Agriculture August 04, 2020



Sugar prices showed a mixed trend on Tuesday on eased local and bulk demand amid enough supply from producing level. Two years of trade disputes between the U.S. and China have driven up the cost of consumer electronics, industrial equipment, soybeans, steel and washing machines. The Sugar and Bioenergy segment produces sugar and ethanol and generates electricity from burning sugarcane bagasse. Notably, PDBC is now overweight in gold, sugar and soybeans compared with its sister fund, while underweight in energy contracts.
In the overnight electronic session the December corn is currently trading at 326 ¼ which is 2 ¼ cents lower. Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit. It operates in five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer.


The Australian Dollar is advancing following the central bank’s update, supported in part by the weaker US Dollar. Among the possibilities: Hyperinflation, a sovereign debt crisis, a major bull market in gold (XAUUSD:CUR), the loss of reserve currency status for the dollar (UUP, UDN). The recent decline in the US Dollar Index against other major currencies has made many market participants wonder: is now a good time to invest in European stocks? The dollar is still the global reserve currency, and the next bounce from oversold conditions threatens carnage for assets on the other end of the teeter-totter.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.08 per cent to 93.46. FOREX: A dollar rebound faltered as political wrangling over a U.S. relief plan and the gloomy outlook weighed on the currency. In 2019, eighty-eight percent of global trade was conducted in the US dollar along with sixty-one percent of all foreign bank reserves and nearly 40% of the world’s loans.
The dollar is narrowly mixed among the majors, though we suspect the greenback’s upside correction may not be over. Bondholders would receive about 54.8 cents on the dollar, close to the midpoint of the most recent offers from creditors and Argentina, people familiar said. The dollar slipped as political wrangling over a U.S. relief plan weighed on the currency.


This was evident in FY2020 as the average milled grade came in at 7.1 grams per tonne gold vs. 10.8 grams per tonne gold the year prior. Milled grades during FY2020 came in at 1.17 grams per tonne gold, a nearly 30% drop from the 1.64 grams per tonne feed grade in FY2019. Unfortunately, FY2021 guidance points to another tough year with lower gold production vs. 2018 peak production at rising costs. The takeaway here is that at $2.50 copper, Capstone Mining is generating roughly $10-13M in free cash flow at the current production profile of 140-150 million pounds per year.
A discussion about whether it is time to sell silver, gold and gold mining stocks. (Source: Company Report, Company Website) During Q4, we saw record quarterly gold production of 29,200 ounces, a more than 10% improvement sequentially from the fiscal Q3 results. That’s how the average copper price of $2.42 per pound was boosted by approximately $0.30 per pound. The mine reported annual gold production of 104,000 ounces, down 26% year-over-year, with all-in sustaining costs suffering due to the weaker performance.
Gold had a phenomenal run gaining over 36 per cent so far this year. Gold prices on Tuesday was down at ₹53,976 per 10 grams against ₹54,004 logged on Monday due to profit-booking.


Major oil companies were crushed in the second quarter as coronavirus lockdowns led to a sharp decline in demand for oil and gas products. Oil again rejected the sub $40.00 a barrel area as talk starts to circulate that we could see a significant drawdown in U.S. crude oil inventory. Note that oil was in the $80-$100/bbl range for some of this period – so it has more to do than just the price of oil. Average daily production tumbled 38.8% to 202,815 barrels of oil equivalent (boe), while prices crashed 78.1% to $7.88 per boe, the company said.
The U.S. shale producer on Monday posted a bigger-than-expected second-quarter loss as the coronavirus crisis and related lockdowns pummeled demand for fuel and hammered oil prices.
On the Crude Oil front, OPEC+ is doing a delicate balancing act as production cuts of 9.7 million barrels per day expired on July 31st. Royal Dutch Shell is a major oil and gas company that recently announced a cut to its dividend. The company describes it as a change from an International Oil Company to an “Integrated Energy Company”. Total production of 2,525 thousand barrels of oil equivalent per day (MBoe/d) was lower than the year-earlier quarter level of 2,625 MMBoe/d.
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United States

Executive action President Donald Trump said he may take executive action to impose a moratorium on evictions and enact a payroll tax holiday. Tim Murtaugh, the campaign’s communications director, said the convention would still be “a celebration of the accomplishments of President Trump on behalf of all Americans”. DRUG PRICING: At the end of last week, President Trump signed three health care executive orders, including two that focus on the pharmaceutical industry and drug pricing.
Trump May Halt Evictions Amid Virus-Aid Talks Trump could also take executive action to enact a payroll tax holiday. The drama did little to hurt technology stocks: The Nasdaq 100 soared to a fresh record on Monday as traders bought companies poised to outperform in a stay-at-home economy. President Trump said he discussed taking executive action to suspend payroll taxes, a move both parties’ lawmakers have rebuffed. However, for the approval to acquire the Chinese-owned video app Trump has said he wants a cut of the deal for the US Treasury.
U.S. stock futures fell as President Donald Trump’s threat to ban TikTok failing a sale of its U.S. operations drew sharp rebuke from China hurting investor sentiment. While US President Donald Trump previously tweeted he would ban the Chinese app he has since given approval for Microsoft (MSFT) to acquire it by 15 September. Trump said he may take executive action to impose a moratorium on evictions and enact a payroll-tax holiday.


WHO Director-General Tedros Adhanom Ghebreyesus shakes hands with Chinese President Xi Jinping The ‘fact finding mission’ included talks on animal health research, according to a WHO spokesman. Peter Martin, Gordana Filipovic and Alan Crawford explain how Serbia s purchase of Chinese-made attack drones underscores Beijing s broadening strategic footprint on NATO s doorstep. Any further worsening of relations between Beijing and London could weigh on the pound.
Of those, 28 were in the northwestern region of Xinjiang and two in Liaoning Province in the northeast. ByteDance is a success story in Beijing s quest for so-called cyber-sovereignty.

Europe Follow The agreement of European Union leaders to issue €750 billion of bonds to help finance COVID-19 recovery has many investors and analysts salivating with anticipation. The agreement of European Union leaders to issue €750 billion of bonds to help finance COVID-19 recovery has many investors and analysts salivating with anticipation. The current outstanding EU bonds of comparable maturity, which track French government bonds, are yielding about minus 0.20%.
In that sense, the new bonds are not the breakthrough to debt mutualization hailed by many and this is not the EU’s Hamiltonian moment.
A new document warns that Brexit will bring up to 10 months of disruption, with emergency traffic control measures in Kent to last until “the end of October 2021”. The new EU debt, as some cautious commentators have noted, will not have a cross-default clause—individual countries will not be obligated to pay in case of default. The government fears trucks traveling from Britain to the EU won’t have the right customs forms, causing major supply chain disruptions. Chicks exported to the EU will die unless they can be rushed through the chaos expected at UK ports next year, the government has admitted.
Germany 10Y Weekly TTM Germany has a slightly better credit score (triple-A across the board), and the EU’s rating is hardly set in stone. Despite all the protestations about this being unique and temporary, EU leaders will find numerous excuses to tap markets now that the genie is out of the bottle.