Agriculture
Downtrend The downtrend may be expected to continue, while corn is trading below resistance level 313.5, which will be followed by reaching support level 302. Downtrend The downtrend may be expected to continue, while wheat is trading below resistance level 502, which will be followed by reaching support level 466. Uptrend The uptrend may be expected to continue, while cocoa is trading above support level 2442, which will be followed by reaching resistance level 2800.
Uptrend The uptrend may be expected to continue, while wheat is trading above support level 466, which will be followed by reaching resistance level 541 and 573 – 591. Downtrend A downtrend will start as soon, as cocoa drops below support level 2442, which will be followed by moving down to support level 2205. At the 63 cents per pound level on August 10, cotton remained above the midpoint of this year’s trading range. At just under the 63 cents level on August 10, the cotton price is near the top end of last year’s trading range during August.
While the price of cotton corrected lower, it remained above its first technical support level at 59.51 cents, the July 24 low. After trading to a high of 65.05 cents per pound on the active month December futures contract, cotton posted a significant decline on Friday, August 7. The rise in open interest since late June and the increasing price is a technical validation of the bullish price action in the cotton futures market.
Uptrend The uptrend may be expected to continue, while wheat is trading above support level 466, which will be followed by reaching resistance level 541 and 573 – 591. Downtrend A downtrend will start as soon, as cocoa drops below support level 2442, which will be followed by moving down to support level 2205. At the 63 cents per pound level on August 10, cotton remained above the midpoint of this year’s trading range. At just under the 63 cents level on August 10, the cotton price is near the top end of last year’s trading range during August.
While the price of cotton corrected lower, it remained above its first technical support level at 59.51 cents, the July 24 low. After trading to a high of 65.05 cents per pound on the active month December futures contract, cotton posted a significant decline on Friday, August 7. The rise in open interest since late June and the increasing price is a technical validation of the bullish price action in the cotton futures market.
Currencies
In container, dollar chana (44/46 count) ruled at ₹6,550, while dollar chana (58/60 count) fetched ₹5950 a quintal. Now, however, gold is making daily headlines, and thanks to falling interest rates and the declining U.S. dollar, the case for holding gold seems to only be getting stronger. The dollar trades a tad softer while the risk-on sentiment and higher real yields have pushed gold back below the psychological important $2000 level. The stimulus announced by the US Fed to revive economy has weakened dollar against major currencies and pushed up gold prices across globe.
When shares were consistently trading below book value throughout 2018 to mid-2019, the long-term bonds were trading significantly higher, near 80 cents on the dollar. The 2034 maturity last traded at $70.01, barely above late 2018’s prices, but far from where it had fallen in April, at 39 cents on the dollar. The record level of central bank and government stimulus and a falling dollar is a bullish cocktail for commodities prices.
You may recall that that bear market for the dollar was also a great time to own precious metals and commodities. The dollar’s stunning decline last month looks less consequential if you take into consideration the inflation-adjusted value, strategist Marshall Gittler said. Commodity prices, especially raw material prices, and the US dollar typically have an inverse relationship.
When shares were consistently trading below book value throughout 2018 to mid-2019, the long-term bonds were trading significantly higher, near 80 cents on the dollar. The 2034 maturity last traded at $70.01, barely above late 2018’s prices, but far from where it had fallen in April, at 39 cents on the dollar. The record level of central bank and government stimulus and a falling dollar is a bullish cocktail for commodities prices.
You may recall that that bear market for the dollar was also a great time to own precious metals and commodities. The dollar’s stunning decline last month looks less consequential if you take into consideration the inflation-adjusted value, strategist Marshall Gittler said. Commodity prices, especially raw material prices, and the US dollar typically have an inverse relationship.
Metals
The appreciation in gold prices has been substantial since the start of the summer, raising some questions regarding the sustainability of the gold price rally. Peter talked about gold’s bull run on his podcast and said it’s the most unloved gold bull market he’s seen in his entire career. The buyers for gold and silver are real buyers — individual investors, and in the case of gold, central banks. In 2020, it is more important than ever to have a different approach towards gold since the gold markets behave in a fundamentally differently than the stock market.
The substantial increase in investment demand for gold (via ETFs) has been very bullish for the COMEX gold spot price and thus SGOL. As many unfortunate gold investors learned in February and March of this year, gold is not a crisis hedge and will not protect against losses when all markets crash. Gold Resource has not indicated an average gold price. We think that demand for gold is driven by the massive decline in US real rates, reducing the opportunity cost for owning gold.
Spargos contains inferred and indicated resources of 131,000 toz gold, at gold grades over 4 g/t, which is very high grade for an open pit.
They don’t believe gold mining companies are really going to benefit from a temporary rise in gold.
The substantial increase in investment demand for gold (via ETFs) has been very bullish for the COMEX gold spot price and thus SGOL. As many unfortunate gold investors learned in February and March of this year, gold is not a crisis hedge and will not protect against losses when all markets crash. Gold Resource has not indicated an average gold price. We think that demand for gold is driven by the massive decline in US real rates, reducing the opportunity cost for owning gold.
Spargos contains inferred and indicated resources of 131,000 toz gold, at gold grades over 4 g/t, which is very high grade for an open pit.
They don’t believe gold mining companies are really going to benefit from a temporary rise in gold.
Oil
Although commodity prices have improved substantially since the second quarter, oil continues to face major headwinds, including the spread of the coronavirus pandemic which might hurt oil demand. ConocoPhillips has a good track record of generating free cash flows but it doesn’t hedge its oil production which leaves its cash flows fully exposed to oil price weakness. But it shows the oil sands producer is taking advantage of the current challenges in the oil and gas environment.
As the prices of both WTI and Brent oil plunged to under $30 per barrel in the second quarter, the company’s cash flows came under pressure. A month ago, I wrote that the weakness in oil prices and low production might push ConocoPhillips’ earnings into the red and it could also burn cash flows. (COP) lost nearly $1 billion and burned cash flows in the second quarter but its outlook is looking better, thanks to the improvement in oil prices. ConocoPhillips’ earnings fell as the company realized crude oil prices of just $25 per barrel for Q2-2020, down from almost $49 in Q1-2020.
The taking back of the oil from the SPR might slow commercial inventory drawdowns as companies prioritize selling the barrels, market sources said. Support could also come from more whispers of another massive crude oil draw in this week’s American Petroleum Institute report and Energy Information Administration (EIA) report. Oil prices are back on the rise as global equity markets surge and geopolitical risk may be rising.
As the prices of both WTI and Brent oil plunged to under $30 per barrel in the second quarter, the company’s cash flows came under pressure. A month ago, I wrote that the weakness in oil prices and low production might push ConocoPhillips’ earnings into the red and it could also burn cash flows. (COP) lost nearly $1 billion and burned cash flows in the second quarter but its outlook is looking better, thanks to the improvement in oil prices. ConocoPhillips’ earnings fell as the company realized crude oil prices of just $25 per barrel for Q2-2020, down from almost $49 in Q1-2020.
The taking back of the oil from the SPR might slow commercial inventory drawdowns as companies prioritize selling the barrels, market sources said. Support could also come from more whispers of another massive crude oil draw in this week’s American Petroleum Institute report and Energy Information Administration (EIA) report. Oil prices are back on the rise as global equity markets surge and geopolitical risk may be rising.
United States
Another look After deciding against the measure almost a year ago, President Donald Trump said yesterday that he is “very seriously” considering a capital gains tax cut. The move, known as indexing capital gains to inflation, would likely face legal challenges, and comes as Trump also explores “an income tax cut for middle-income families.” “We’re looking at also considering a capital gains tax cut, which would create a lot more jobs,” said Trump during a White House news conference.
President Trump on Monday said he’s “very seriously” considering slashing the capital gains tax via executive order, according to Bloomberg. Despite beating Wall Street’s top-line expectations, growth slipped to 19% y/y, despite the company’s earlier assertion that it would sustain 20% y/y growth for the foreseeable future. Trump threatened during the press conference to make the payroll tax exemption permanent if re-elected as well as revamp the capital gains tax.
Talk by President Trump of a capital gains tax cut is feeding the rally. Source: The Wall Street Journal The short interest ratio is at 1.66 and that is one of the highest readings since the beginning of the year. Low interest rates tend to increase the demand for new homes, and the Fed intends to keep rate low for as far as the eye can see. Even without a cut, Trump said things are going well if you look at your 401(k) balance.
President Trump on Monday said he’s “very seriously” considering slashing the capital gains tax via executive order, according to Bloomberg. Despite beating Wall Street’s top-line expectations, growth slipped to 19% y/y, despite the company’s earlier assertion that it would sustain 20% y/y growth for the foreseeable future. Trump threatened during the press conference to make the payroll tax exemption permanent if re-elected as well as revamp the capital gains tax.
Talk by President Trump of a capital gains tax cut is feeding the rally. Source: The Wall Street Journal The short interest ratio is at 1.66 and that is one of the highest readings since the beginning of the year. Low interest rates tend to increase the demand for new homes, and the Fed intends to keep rate low for as far as the eye can see. Even without a cut, Trump said things are going well if you look at your 401(k) balance.
China
The announcement followed last week’s US sanctions on 11 Hong Kong and Chinese officials after Beijing curtailed political freedoms in the former British colony. Asian stock markets ended on a mixed note today as relations between Washington and Beijing worsened. But will global users accept a system run by Beijing, no matter how accurate it is?
Europe
Add to that concern the new frictions caused by Brexit and it is difficult to see how UK prospects going forward will improve. It said the EU Aviation Safety Agency will issue a directive on this matter.Turkey’s stealth monetary tightening is back. But the U.S. and the EU condemned the conduct of the elections and the crackdown on protesters. Yields on Italian government bonds are dipping below 1% after the European Union agreed to €750 billion in recovery aid, with Italy the biggest beneficiary.
For the reader’s information, the Eurozone (stocks in EU accounts for about 40% of VEU’s portfolio) saw its GDP declined by 11.9% in Q2 2020.
The U.S., EU blast Belarus crackdown as opposition rejects vote. His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. Remdesivir has received regulatory approvals in the European Union and Japan, according to Gilead. US and EU GDP NowCasting and 2.
0 For the reader’s information, the Eurozone (stocks in EU accounts for about 40% of VEU’s portfolio) saw its GDP declined by 11.9% in Q2 2020.
The U.S., EU blast Belarus crackdown as opposition rejects vote. His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. Remdesivir has received regulatory approvals in the European Union and Japan, according to Gilead. US and EU GDP NowCasting and 2.
