Close: London Session | Forex, Metals, Oil, Agriculture December 07, 2020



The company also relies on many commodities such as natural gas, wheat flour, and grain. A spokeswoman for Mars said the company wasn’t trying to circumvent the cocoa premium. The company is also the largest American supplier of starches and specialty wheat proteins. The company owns several consumer liquor brands including TILL’s American Wheat Vodka, George Remus Whiskey, and Rossville Union Whiskey. “Mars Wrigley categorically disagrees with any allegation that it has changed its cocoa-buying practices to avoid payment of the [living income differential],” she said.
Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit.


Image Source: Pixabay The DXY US Dollar Index, which has exhibited a relatively strong negative correlation with gold prices, is hovering at its 2.5-year low of 90.66. The dollar will most likely weaken over the medium term; for a few months, this will look like proper reflation. Dollar strength rendered gold artificially more expensive, causing a second day selloff. The trade surplus also notched a high in dollar terms, hitting $75.4 billion. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.48 per cent to 91.13.
Gold fell for the second day on the back of dollar strength. less One of the major themes for financial markets during the 2020 pandemic is a lower U.S. dollar. less The rupee dropped by 10 paise to settle at 73.90 (provisional) against the US currency on Monday due to a stronger dollar in overseas markets. In terms of the market reaction, sterling has moved slightly lower this morning, down -0.16% against the US dollar.
The British pound weakened the most in three months against the dollar.


He mostly mostly writes about gold, covering topics such as central banks’ gold policy and the international monetary system, but also about financial markets in general. The development of central banks promoting gold is a slow shift from plan A (fiat) towards plan B (gold), as I have written about here, here, and here. With these new bars CBU aims to stimulate gold to be used as a store of value, as well as promote the circulation of gold. The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions.
This time, an estimated 150,000 gold call options expired worthless, representing 467 tonnes of gold. Jan Nieuwenhuijs is an independent financial researcher and gold analyst at The Gold Observer. Gold Daily If gold falls below the Nov. 3, $1,767.20 low, it will make a selloff all but certain. The dramatic sell-off of the last few weeks ended on Monday morning when gold spiked down to an intraday low of $1,765 (silver $21.90).
less Since November 2020, the central bank of Uzbekistan (CBU) issues sealed gold bars with a QR-code for real time verification. Gold prices were mixed today in Indian markets as optimism around Covid-19 vaccines roll-outs offset hopes of a US stimulus package being passed this week.


Optimism about oil prices and a global economic recovery has grown, with a multitude of future oil price graphics spreading like wildfire on the internet. About two-third of overall soya oil requirement is met through degummed soya oil, making India among the top importers of the commodity. On most FX brokers, trading oil is possible via CFDs (Contracts for Difference) that mirror the move in the price of oil. China brought in 45.36 million tonnes of crude oil last month, equivalent to 11.04 million barrels per day (bpd), data from the General Administration of Customs showed on Monday.
Oil has come back lower, and the January WTI contract has given up the pre-weekend gain to return to around $45.50 (OIL).
For instance, last week, the global crude oil floating inventories dropped below one hundred million barrels for the first time since April. Saudi seaborne crude exports for last week were seen at 29.4 million bbl (4.2 million bpd) compared to the revised 49.1 million bbl (7.0 million bpd) the week prior. Crude oil traders had a busy week last week as headlines from the OPEC+ meeting created volatility on the market.
Brent crude futures, the global oil benchmark, fell 0.79 per cent to USD 48.86 per barrel. Lower demand for oil translated into lower prices and the abrupt fall seen in April coincided with the stock market rout.

United States

At the very least, slow growth and low inflation are likely for the next several months.The Fed will keep monetary policy easy for the foreseeable future. As long as the US is in the expected low-growth, low-inflation regime, the Fed will keep rates very low, limiting the potential rise in market-driven rates. The upturn was led by the US and China, where growth reached the highest for over five and over ten years respectively, and which also saw strong job gains.
Overall, the slowed growth has to do with some programs throttling back on growth as ramp-ups are completed, some programs going down slightly while other programs are ramping up. The US, with stagnant or even contractionary fiscal policy, would be almost alone among major economies. Democrats, with their House majority, could decide to impeach Trump for a second time only to have him survive a second time, and doing so would hardly be unreasonable. While the US and China saw strong and accelerating growth, the eurozone slipped back into a substantial contraction, led by sharply falling business activity in France, Spain and Italy.
Any price weakness would be an ideal buying opportunity, given the prospects for increased revenues and profits from new home building and an infrastructure project in the US. It says it all when the US market rose on the back of a poor Non-Farms payrolls report because it will support greater stimulus efforts! Putting it another way, the probability of the US experiencing deflation will remain low until after inflation is widely perceived to be a major problem.


Unlike cryptocurrencies, the PBOC controls the digital yuan, giving the country more power and a remarkable amount of information about what consumers are spending their money on. Hui is among the dozens of pro-democracy legislators who resigned en masse last month in response to the Beijing-led disqualification of four colleagues. All of this has ceded global economic leadership to China, as we can see from the trade negotiations Beijing recently oversaw with 14 other Asian nations.
Beijing has vowed to take countermeasures.


Gilts are rallying, amid concern that trade negotiations could collapse on Monday when BoJo and von der Leyen hold a ‘check-in’ call in roughly three hours. China’s trade surplus with the EU rose by 20% to $11.3 bln, as exports rose 8.6% from a year ago ($37.5 bln), and imports rose 4.5% ($11.3 bln). Balance these against what Brexit costs in terms of immediate lost trade with Europe, increased administration and trade friction, and the economic shockwave it threatens to create.
In Europe, Britain and the European Union will make their final attempt to come up with a post-Brexit trade deal.
11th hourWhile it might seem that Brexit talks have been only hours away from collapsing for the past four years, today might actually be crunch time. The EU and the UK continue clashing over a Brexit deal with only some three weeks to go until the transition period ends. The 10-11 December EU Council meeting on 2030 emissions reduction target and a final agreement on Brexit deal could provide some direction to carbon prices. The news stole the spotlight from hopes of a possible US stimulus package, while the European Union and the UK continue to lock horns over a Brexit deal.
This positive boost to orders will fade, and in fact likely reverse, in the New Year, based on what we have seen during previous bouts of such pre-Brexit ordering. U.K. Prime Minister Boris Johnson and European Commission President Ursula von der Leyen’s phone conversation led to talks restarting over the weekend, with both sides saying “significant differences” remain.