Close: London Session | Forex, Metals, Oil, Agriculture December 24, 2020



With the US final soybean yield dropping 4 out of the last 5 years November, January’s soybean yield is likely to slip another 0.4 bu. With the US corn yields declining 5 of the past 7 years from November to January, a 1-bushel decline is likely next month resulting in an 82 million bu. After last fall’s Small Grains Report, no change in the total US wheat crop or its various varieties is likely on the upcoming January 12 production report. In soybeans, 2020’s growing season was also impacted by drought that spread across the Midwest particularly during the August to October time period.
Overall, the US corn yield slid 6 bu to 175.8 from August to November. The Patrick Air Force Base in Cocoa Beach and the Cape Canaveral base have both been renamed as Space Force bases.


Gold prices rose, supported by a weaker dollar ahead of the trade deal and as uncertainties around a new variant of the coronavirus overshadowed vaccine optimism. Gold prices rose, supported by a weaker U.S. dollar ahead of the trade deal and as uncertainties around a new variant of the coronavirus overshadowed vaccine optimism. Meanwhile, anti-fiat gold prices also rallied, capitalizing on broad weakness in the US Dollar as it particularly lost ground to the British Pound.
Growth vs Value This bull market has been led by growth stocks, which is what we would expect from a strong dollar environment. Since the 2016 referendum, the British pound lost the 1.50 level against the U.S. dollar and never looked back. I think this was a smart move and I’m perhaps a little bit disappointed the dollar store hasn’t restarted a meaningful buyback program yet. This in turn has driven the US dollar to be weaker, which usually helps support commodity prices.
Since March, the dollar index moved from 103.96 to the 90 level, a decline of around 13.4%. By the time they have the right to redeem, the direct purchase price will be $5.15, almost a dollar above the redemption price. The outperformance of growth started to accelerate in 2014/15 when the dollar surged higher.


In 2002 when gold was $300 per ounce, MAM recommended to its investors to put 50% of their investment assets into physical gold stored outside the banking system. We also hold Canadian stocks, Canadian bonds, US Treasuries, gold stocks and ETFs that hold physical gold, along with bitcoin plus cash and real estate. “GOLD HAS BEEN A POOR INVESTMENT” Most investors are not even aware of gold and the ones who are don’t understand it. The fact that gold was $35 in 1971 is never mentioned and then moved up 24x until 1980 or that gold today is up 5,300% since 1971.
Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic. In international markets, gold prices steadied as investors balanced elevated U.S. jobless claims with US President Donald Trump’s threat to veto a long-awaited stimulus bill. The GoldSwitzerland Division was created to facilitate the buying and storage of physical gold and silver for private investors, companies, trusts and pension funds.
These elevated prices for iron ore have resulted in RIO posting the highest share price since the great financial crises of 2008. Real assets like precious metals and commodities will be the “safe” investments, as will substitutes for paper money, like cybercurrencies and gold. Third, focus on projects that will produce 100,000 ounces of Gold per year or more.


The crude oil trucking business and the consideration for crude oil linefill and inventory make up the remaining $10 million. CRUDE OIL TECHNICAL ANALYSIS WTI crude oil prices bounced off the short-term 20-day Simple Moving Average, following the bullish implications of a ‘Golden Cross’ formed back in late November. Blueknight recently announced the sale of its crude oil terminalling, pipeline, and trucking businesses for $162 million in gross cash proceeds.
This results in Blueknight’s estimated adjusted EBITDA being around $50 million proforma for the sale of its crude oil businesses.
The sale of its crude oil businesses involved a pretty healthy multiple of over 11x adjusted EBITDA including the associated corporate costs of the divested businesses. Blueknight has approximately $100 million in credit facility debt proforma for the divestiture of its crude oil businesses. Blueknight Energy Partners has substantially reduced its credit facility debt via the sale of its crude oil businesses. Blueknight Energy Partners (BKEPP)(BKEP) has substantially reduced its debt with the sale of its crude oil businesses at a multiple that is effectively over 11x adjusted EBITDA.
less Crude oil prices rallied over the past 24 hours, pausing two consecutive days of relatively aggressive losses. The price of oil is the driving factor for both companies at the end of the day and plays a major role in the price action of the stock.

United States

Interest and dividend income fell by 3.4% from February to $2.87 trillion (annual rate), a result of the Fed’s interest rate repression and corporate dividend cuts. Because of the belief that, in times of economic slowdown, the Fed lowering interest rates will increase borrowing, and this, in turn, will have impacts across the economy. During the Wall Street trading session, markets also welcomed upbeat US durable goods orders and initial jobless claims data, brushing aside pessimistic personal spending figures.
US stock futures are trading higher today, indicating a positive opening for Wall Street indices. However, the coming years could be an entirely different story if the US begins an infrastructure initiative, and the global economy continues to improve. Wall Street gets paid on assets under management – the higher the stock and bond market rises, the more they earn. The US stock portfolio has delivered outperformance with respect to total returns and dividend health.
In the fourth quarter 2018 we got a hint of what happens when the Fed stops easing: stock markets plunge. As we head into 2021, it is challenging to find value in the US stock market. This will breathe new life into Wall Street even as corporate balance sheets continue to improve.


While it will be challenging for Beijing to achieve its goal, China’s plan to become a green superpower will have ripple effects around the world. But recent events have reinforced the impression that Beijing means business. More recently, Ma attempted to ease Beijing’s concerns by offering the government parts of its Ant business.


Asian stocks advanced, driven by energy and technology shares, as the outline of a post-Brexit trade deal helped lift investor sentiment. One EU diplomat said the U.K. had made concessions on fisheries in recent hours that had unlocked the deal. Bloomberg reports U.K., EU Set to Announce Brexit Trade Deal After Compromise. • FTSE rallied 0.6% on Tuesday as Brexit rumors swirled and on news that a deal could be imminent. All eyes remain on an official announcement of a Brexit deal, which is within the next few hours.
less Fish were the final stumbling block in a post-Brexit deal between the EU and UK. Giving market sentiment a further boost was news of a potential Brexit deal between the United Kingdom and the European Union. With a deal in place, both the European Union and the United Kingdom will agree on some measures to mitigate the early impact of a Brexit. Brexit trade talks continued overnight between the EU and the UK and an agreement is expected to be unveiled today.
The Financial Times reports Britain and EU Poised to Announce Christmas Eve Brexit Deal.