Close: London Session | Forex, Metals, Oil, Agriculture August 05, 2020



Before 2018, the price of nearby coffee futures that trade on the futures market on the Intercontinental Exchange had not declined below the $1 per pound level since 2006. The most direct route for a risk position in the coffee market is via the futures and futures and futures options that trade on the Intercontinental Exchange. The iPath Series B Bloomberg Coffee Subindex Total Return ETN product (JO) follows the ICE coffee futures’ price higher and lower.
The iPath Bloomberg Cocoa Subindex Total Return ETN product (NIB) follows the price of cocoa futures higher and lower. The most direct route for a risk position in the cocoa market is via the futures and futures options that trade on the Intercontinental Exchange. Declining Robusta inventories are likely to increase the demand for Arabica beans, supporting the gains in the ICE coffee futures market over the past week. The recent strength in the coffee futures market is because of the decline in Robusta stockpiles, which fell to the lowest level since early 2019.
The action in the currency markets could continue to push the price of coffee futures higher. At just below 270,000 contracts, the total number of open long and short positions in the ICE coffee futures market has been flatlining since June. The ETN did an excellent job replicating the price action in the coffee futures market.


The dollar slumped as a U.S. coronavirus relief package was stalled in Congress, while gold prices extended its rally above the key $2,000 an ounce level. The dollar is the world’s reserve currency and the benchmark pricing mechanism for most commodities and agricultural products. The COVID-19 economic crisis began bullishly for the U.S. dollar, with investors fleeing to its “refuge” early on — spurring an exceptional 9% rally. As of August 4, the trend in the dollar remained lower, and the pound strengthened to over the $1.30 level against the US currency.
Until recently, gold had been setting record all-time highs in pretty much all currencies around the world… except for the US dollar. The U.S. dollar slumped as a U.S. coronavirus relief package was stalled in Congress. At the 93.355 level on August 4, the dollar was not far from the recent low. The US dollar is falling across the board – and – as investors fret over several US-related issues.
Nonetheless, it would be naïve to put all such resilience down to a weakening U.S. dollar (supportive as that is for metals prices). The US dollar has been on the back foot alongside bond yields.


In Q2 2020, Endeavour Silver produced 596,545 toz silver and 5,817 toz gold, or 1,061,905 toz of silver equivalent. Peter noted that even as gold builds support just above $2,000 most gold stocks have yet to make new highs for the year. To sum it up, Terronera should produce 3 million toz silver and 33,000 toz gold per year on average, at an AISC of $2.1/toz silver. Even the staunchest gold bugs will be surprised by how high the price of gold rises, and how quickly it gets there.
Despite gold having often been considered an important inflation hedge, there was no statistically significant relationship with the CPI for gold or any other asset. Moreover, the gold price just reached a new all-time high above $2,000/toz, and the silver price is approaching the $26/toz mark. less The buying pressure on precious metals has continued overnight with gold and silver futures extending yesterday’s impressive gains. For extreme geopolitical risks, among the precious metals, only gold and silver display consistent safe haven properties.
The buying pressure on precious metals has continued overnight with gold and silver futures extending yesterday’s impressive gains.
Today we’ll review new research on the hedging and safe-haven properties of precious metals (gold, silver, palladium and platinum).


U.S CRUDE OIL STOCK CHANGE The U.S crude oil inventories started lately decreasing, making significant support to oil prices. The company said it cut costs and expenses by more than a third as prices for its oil and gas tumbled 55.2% to $17.61 per barrel of oil equivalent. Given the problems in the oil market just recently the big oil question was whether the major companies could outlast the sovereigns. With valuations still completely disconnected with oil market fundamentals, we think investors should be positioned to take advantage of the oil bull market.
We all recognize the pain that oil price declines have caused and Q2 of course saw the massive and historic dump of oil into negative territory. Oil companies are good at doing oil, car companies good at manufacturing cars and so on. BP Walks Away From the Oil Supermajor Model It Helped Create Bernard Looney s strategy shows the oil industry is splitting in two. It is also important to realize that natural gas demand was not nearly as disrupted as crude oil was by lockdowns.
Oil prices rose after data showed a big drop in U.S. crude inventories. Source: EIA, HFI Research The combination of lower imports, higher exports, and low levels of US oil production will keep the current crude draw trend in place.

United States

For the 2020 second quarter, the company reported non-GAAP earnings of $0.99 per share, blowing away the Wall Street consensus of $0.44 per share. Gross Payment Volume (NASDAQ:GVP) from online channels was up more than 50% year over year during the quarter, and it accounted for more than 25% of total seller GPV. As if to underline the state of the market, Apple (NASDAQ:AAPL) reported record $59.7 billion sales this week for the second quarter of 2020.
The company forecast current-quarter sales above Wall Street expectations after beating quarterly estimates, as demand for its online dating app Tinder rebounded during the coronavirus lockdowns. It is possible the US death curve is following the positive test curve but much later and at much less magnitude than the first time around. Adjusted earnings of 44 cents per share were ahead of the 38 cents analysts expected, while the sales figure was in line with Wall Street expectations. FedEx reported a 0.4% dip in revenue per package for the year, while UPS recorded a much steeper 4.4% for its Q2-20.
less Joe Biden may lead in the polls, but the US stock market tells us that President Trump will prevail and lead the US over the coming four years. All three major US stock indices finished higher on Tuesday, after reports that Democrats and Trump administration officials have had productive meetings on a new stimulus package. Many investment banks and analysts are now calling for $3,000 with the uncertainty of the US Presidential elections and Brexit coming up in the second half of the year.


Second, as the rivalry extends into the tech space, Beijing has unveiled new efforts to aid the semiconductor and software industry. While Xi Jinping and Vladimir Putin have a warm rapport, the overall relationship is opportunistic and held together by the ability to paper over differences. It s the latest show of U.S. support for Taipei against the leadership in Beijing, which views the democratically-governed island as a renegade province. One 2019 video ad, for example, promoted Xinjiang tourism under Chinese rule.
Beijing sanctioned Lockheed Martin last month of such sales.


As Big Tech companies face mounting antitrust scrutiny,the EU will investigate how buying the fitness company would bolster Google s data advantage. Separately, the U.K. plans to adopt its full no-deal Brexit border plan to avoid traffic chaos when it completes the split. like China/US tension, global trade null-entrophy, Brexit, and the issues likely to be triggered by Europe’s recovery fund. Moreover, there is no news on the international front, like Brexit, US-UK trade talks, and relations with China have yet to improve.
Thus, their study omits events such as the dissolution of the Soviet Union (December 1991) and the Brexit referendum (June 2016). The EU is considering higher renewable targets. EU launches probe into Google’s (GOOG, GOOGL) Fitbit (NYSE:FIT) acquisition.