Close: London Session | Forex, Metals, Oil, Agriculture February 18, 2021



The market has responded by pushing prices for refined sugar further above those for raw sugar, according to John Stansfield, a trader at Group Sopex. The prospect for the robust LNG arrivals across Europe also suppressed gas price as weak Asia LNG demand on mild weather diverted more uncommitted cargoes to Europe. Materials like white sugar, coffee and aluminum are often shipped in boxes to prevent damage. Beans are back in the teens, wheat is over $6 per bushel, and corn is sitting around $5.40 as the 2021 crop year in the northern hemisphere approaches.
Despite a bumper sugar crop in India, the world’s second-biggest producer of the sweetener, traders have struggled to source containers to export it. Wakefield began to experience severe problems moving coffee out of Vietnam—the world’s second-largest producer of the bean—in late January. Due to unseasonably warm and mild weather, total consumption dropped by noticeable 102mcm/d and 212mcm/d (2335GWh/d) week on week in the UK and NWE, respectively.
The company also collects rent revenue from CVS (which runs in-store pharmacies) and Starbucks (in-store coffee shops). However, the long-term trends in wheat, soybean, corn, and other agricultural products have displayed higher lows. In 2012, drought conditions in the US and other growing regions caused corn and bean prices to rise to all-time highs.


The upbeat economic data pushed the US Dollar higher which acted to the detriment of gold and other precious metals such as silver. In turn, Treasury yields may drop off their highs, and make the dollar less attractive. The rupee touched a low of 72.78 and a high of 72.65 during the day.The domestic unit finally ended 9 paise higher at 72.65 against the US dollar. In turn, softer yields would make the dollar less attractive. The data has fuelled a sell-off across the commodities and equities space as buyers once again flood back into the dollar.
While Republicans have pushed back against the package’s dollar amount, Democrats appear to have a path to pass the enormous package. less Never underestimate the American consumer – a leap of 5.3% in January’s retail sales has smashed all estimates, more than compensated for previous disappointment, and boosted the dollar. The dollar is seeing yesterday’s gains pared against both major and emerging market currencies.
All in all, progress on large stimulus is dollar positive and any road bumps would weigh on it. The dollar fell, while gold prices rebounded from a 2-1/2-month low.


The miner said averaged realized gold price jumped 25% to $1,852 per ounce in the quarter, while attributable gold production fell about 11% to 1.6 million ounces. Barrick Gold Corp: The Canadian miner reported a fourth-quarter profit that beat analysts’ estimates, helped by a jump in gold prices due to coronavirus-induced economic uncertainty. Newmont Corp: The gold miner said that fourth-quarter adjusted profit more than doubled, driven by higher prices on the back of safe-haven buying during the pandemic.
Gold prices touched record highs in 2020, as investors flocked to the safe haven asset while the COVID-19 pandemic roiled the global economy. Despite the sell-off in gold and the rally in USD this week, silver prices have remained well supported around recent highs. Gold trading has become popular as investors from all walks of life use gold as a hedge against any market decline. Gold prices touched record highs in 2020, as investors flocked to the safe-haven asset while the COVID-19 pandemic roiled the global economy.
“Gold Fields has delivered a strong set of results for 2020, with production and costs both within the revised guidance,” said Gold Fields Chief Executive Officer Nick Holland.
However, silver avoided breaking lower like gold, most likely linked to better demand expectations amidst the burgeoning economic recovery in the US. Gold prices are falling from highs of around the mid-1826 level at the start of the week to lows of around mid-1779 as of writing.


Onshore fuel oil stocks fell by 1.627 million barrels, or about 256,000 tonnes, to 19.379 million barrels, or 3.052 million tonnes, Enterprise Singapore data showed. The grid couldn’t match supply and demand dynamics, and had to shut off power for millions of customers.An estimated 3 million barrels per day of oil production remained offline. Crude supplies have been falling for weeks as well and last night the American Petroleum Institute (API) reported that U.S. Crude Supply fell by 5.8 million barrels last week.
Russia is pinning its hopes on hard-to-recover oil, hidden beneath non-porous rocks, such as at Bazhenov, as conventional oil reserves in West Siberia, its main oil-producing area, are falling. Further decline would likely trigger a new leg higher on the crude oil price, although at the current levels, bulls should be cautious. A bigger-than-expected draw in the US crude oil inventories also intensified the supply concerns, supporting the recent rise in the WTI barrel.
WTI has been pushing higher as US crude output is affected by the deep freeze in the largest oil producing US state. NTPC, Asian Paints, Tech Mahindra, PowerGrid and IndusInd Bank were among the other winners.Global markets struggled amid rising crude oil prices, with inflation concerns weighing on risk sentiment. Daily Market Update identifies accurate price targets and turning points for indices, forex, cryptocurrencies, commodities, oil, gas, and stocks.
The global oil demand situation remains uncertain.Oil MonthlyThe price found a dual resistance by the 2020 highs and a long-term downtrend line since the 2008 peak.

United States

Datadog (Nasdaq: DDOG), a provider of essential monitoring and security platform for cloud applications, recently announced its quarterly results that outpaced market expectations. less Shares in US bank Citigroup, the country’s third-largest bank by assets, are trading down ahead of the US open on Thursday. This is the 3rd day in a row of significant selling pressure around the cash market open… Where’s Mnuchin cell phone when we need it!? Photo: Spencer Platt/Getty Images — Herbalife fell 3.3% premarket after the nutrition products company’s quarterly results fell short of Wall Street estimates.
—The retailer Sleep Number reported fourth-quarter results well above Wall Street expectations, calling it a record period for results. The US 10-year Treasury yield is around 1.28%, of the 1.33% high seen yesterday, amid reports that several banks are recommending unwinding the curve steepening trade. Nasdaq Futures are trading down by 65 points (down 0.5%), while Dow Futures are trading down by 35 points (down 0.1%).
The last thing any central banker or supporter of conventional monetary policy wants is to be so closely identified with the former Dallas Fed President.
As I argued in yesterday‘s detailed analysis of the Fed policies, their current stance won‘t bring stocks down. Since leaving Wall Street I’ve dedicated my financial career towards studying this situation and helping people understand what’s actually happening.


The PBOC offered CNY200 bln (~$31 bln) of liquidity via its medium-term lending facility at an unchanged rate of 2.95%. The PBOC offered CNY20 bln of sever-day repo funds, while CNY280 bln is coming due. The move does little to ease concerns about the tightness of the PBOC’s stance.


As regards today’s key macro news that could impact trading in the key pair, we advise FX players to watch for the ECB’s monetary policy meeting at 12:30 GMT. The same will likely happen today with the ECB monetary policy meeting accounts scheduled to be released later. The ECB is likely to allow some further moves in bond yields. Brexit changes might damage the British economy or the Bank of England could decide to cut rates below zero. ECB meeting minutes and Eurozone consumer confidence due later today.
For example, in the Brexit and the according to delays at the land (tunnel) and sea borders, the trade in goods shifted heavily to air cargo. Infections in England have fallen significantly in recent weeks, a boost to British Prime Minister Boris Johnson as he weighs how fast to re-open the economy. There were also some concerns about the valuation of the equity market, which is something that does not feature in ECB discussions that often.
ECB Converges on Green Policy as Activists Patience Wears Thin European Central Bank officials are finally building a consensus. Continuing its war against Apple, Epic Games filed a complaint with EU regulators over App Store rules.