Agriculture
Generally speaking, producers of everything from chicken to pork have to buy corn and other grains to feed their animals. But counterintuitively, it s presenting new obstacles to some of them.First, consider the case of soybean growers in Brazil. Wheat and grains also are up significantly.
Currencies
The tremendous surge in the yields fuelled a solid recovery rally in the US dollar from seven-week lows, exacerbating the pain in gold. FOREX: The U.S. dollar rose against most major currencies, lifted by an increase in U.S. bond yields overnight, while the pound dropped to its lowest in over a week. In 1971, gold went from $35 to $800 after the US dollar was taken off the gold standard. A stronger dollar weighed on gold prices. A stronger U.S. dollar weighed on gold prices.
The dollar has been missing from the party though, only having reversed prior losses to close little changed on the day. Follow-through dollar buying is evident today against most of the majors, and the Antipodeans, Scandis, and sterling are off 0.3%-0.5%, while the Swiss franc and yen are little changed. The gold price is down about 7% (in US dollar terms) since its year-to-date high set on January 6. The third factor that may play in favor of bonds – thus against higher yields and the dollar – is end-of-month flows.
With the Dollar being in the spotlight today, U.S.-based announcements will likely be more influential on the pair as opposed to South Africa’s balance of trade data.
The dollar has been missing from the party though, only having reversed prior losses to close little changed on the day. Follow-through dollar buying is evident today against most of the majors, and the Antipodeans, Scandis, and sterling are off 0.3%-0.5%, while the Swiss franc and yen are little changed. The gold price is down about 7% (in US dollar terms) since its year-to-date high set on January 6. The third factor that may play in favor of bonds – thus against higher yields and the dollar – is end-of-month flows.
With the Dollar being in the spotlight today, U.S.-based announcements will likely be more influential on the pair as opposed to South Africa’s balance of trade data.
Metals
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. Since we called for a bottom a few weeks ago, Gold and gold stocks have tested that call. Gold and gold stocks rebounded but then appeared to begin another leg lower. The same may be true for Gold, so keep an eye out for a major confluence of support at $1690 to $1700, should Gold falter here. We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Perth and soon Dubai.
The gold stocks are oversold enough and corrected enough for a bottom to form, but ultimately, only price action can confirm. The GoldSwitzerland Division was created to facilitate the buying and storage of physical gold and silver for private investors, companies, trusts and pension funds. This did little to inspire a further rise in the gold or silver price.
Both silver and gold would be under pressure, and I look for the white metal to be mostly doing better overall. Throughout the 20th century, whenever the rate of CPI inflation grossly outpaced Treasury yields, gold’s price saw dramatic climbs.
The gold stocks are oversold enough and corrected enough for a bottom to form, but ultimately, only price action can confirm. The GoldSwitzerland Division was created to facilitate the buying and storage of physical gold and silver for private investors, companies, trusts and pension funds. This did little to inspire a further rise in the gold or silver price.
Both silver and gold would be under pressure, and I look for the white metal to be mostly doing better overall. Throughout the 20th century, whenever the rate of CPI inflation grossly outpaced Treasury yields, gold’s price saw dramatic climbs.
Oil
Malaysia’s Petronas falls to fourth-quarter loss Malaysian state oil firm Petronas fell to a fourth-quarter loss on Friday hurt by lower oil prices and demand. Alberta’s 2020/21 deficit stood at C$20.2 billion, compared with a C$24.2 billion deficit projected in August, as recovering crude oil prices help the province narrow its deficit. I have worked in the areas of oil refining, natural gas production, synthetic fuels, ethanol production, butanol production, and various biomass to energy projects.
After declining a bit a decade ago due to high prices, oil consumption in the U.S. has once again been on the rise (excepting last year’s pandemic-related collapse). EOG forecast its crude oil output this year between 434,000 barrels per day (bpd) and 446,000 bpd, about flat compared to the fourth-quarter rate of 444,800 bpd. I have over 20 years of international engineering experience in the chemicals, oil and gas, and renewable energy industries, and hold several patents related to my work.
Oil prices fell on expectation of higher crude supply. Red-Hot commodities are going through a cool-down as weak grain exports and talk that China oil reserves are full is causing a surge in profit-taking.
Crude oil is above $63 a barrel. As a result, natural gas consumption has increased by nearly 40% over the past decade in the U.S.
After declining a bit a decade ago due to high prices, oil consumption in the U.S. has once again been on the rise (excepting last year’s pandemic-related collapse). EOG forecast its crude oil output this year between 434,000 barrels per day (bpd) and 446,000 bpd, about flat compared to the fourth-quarter rate of 444,800 bpd. I have over 20 years of international engineering experience in the chemicals, oil and gas, and renewable energy industries, and hold several patents related to my work.
Oil prices fell on expectation of higher crude supply. Red-Hot commodities are going through a cool-down as weak grain exports and talk that China oil reserves are full is causing a surge in profit-taking.
Crude oil is above $63 a barrel. As a result, natural gas consumption has increased by nearly 40% over the past decade in the U.S.
United States
Wall Street futures slipped, tracking global equities, as investors were concerned over prospects of higher inflation and interest rates due to rising bond yields. Nasdaq Futures are trading down 113 points (down 0.8%) while Dow Futures are trading down by 150 points (down 0.5%) The rupee is trading at 73.04 against the US$. Since March the US stock market, fuelled by aggressive monetary and fiscal easing, has shot to new all-time highs. He said the Fed wouldn’t raise interest rates until inflation had exceeded 2%, a situation that could take more than three years to transpire.
Asian share markets witnessed huge selling after Wall Street’s main indexes tumbled, following a steep rise in benchmark US Treasury yields. The recent run up in GameStop and other stocks involves investors in opposing camps: traditional Wall Street firms and small investors who are bucking the system. less The market could care less about a solid round of data out of the US on Thursday.
US stock futures are trading lower today, indicating a negative opening for Wall Street. Not only in the US, but bond yields are also rising in many other top economies, including Japan. US stock futures are trading flat today indicating a flattish opening for Wall Street indices.
Asian share markets witnessed huge selling after Wall Street’s main indexes tumbled, following a steep rise in benchmark US Treasury yields. The recent run up in GameStop and other stocks involves investors in opposing camps: traditional Wall Street firms and small investors who are bucking the system. less The market could care less about a solid round of data out of the US on Thursday.
US stock futures are trading lower today, indicating a negative opening for Wall Street. Not only in the US, but bond yields are also rising in many other top economies, including Japan. US stock futures are trading flat today indicating a flattish opening for Wall Street indices.
Europe
Britain and the EU are nearing agreement on how to cooperate on financial market rules a first, limited step toward working together after Brexit. EU Told to Back Vaccine Passports or Google May Bloc-wide vaccine certificates could enable countries to reopen to travel. Almost five years since I wrote our first edition, this newsletter will next week be retooled as Beyond Brexit.We will still be your essential one-stop weekly Brexit shop. Berrigan said the EU traditionally looked at consumer protection on an activity-by-activity basis, but had already begun a “horizontal” review across all sectors before the GameStop event.
Separately, the U.K. and EU are also nearing agreement on how to cooperate on financial market rules. Lizzy BurdenAs ever, if Brexit is affecting your business in a way we haven t reported, please get in touch. For full EU coverage, try the Brussels Edition.Like getting the Brexit Bulletin? With that in mind, it’s time for the Brexit Bulletin to look ahead.
0 Separately, the U.K. and EU are also nearing agreement on how to cooperate on financial market rules. Lizzy BurdenAs ever, if Brexit is affecting your business in a way we haven t reported, please get in touch. For full EU coverage, try the Brussels Edition.Like getting the Brexit Bulletin? With that in mind, it’s time for the Brexit Bulletin to look ahead.
