Close: London Session | Forex, Metals, Oil, Agriculture January 22, 2021



A +50% rally in corn and soybeans since August helped attract a very elevated speculative long position, currently some 50% the two previous peaks in 2016 and 2018. Cocoa crisis | Nobody is suffering more from a global chocolate standoff than the Ivory Coast cocoa farmer.


Limiting the downside are the weaker dollar, US stimulus hopes, Saudi Arabia’s unilateral production cuts and a continued strong investor demand for commodities, including oil. With US stock markets at all-time highs and the US dollar under pressure, crude prices look likely to continue higher in the short term. Those currencies that were the better performers this week, like sterling, the Australian and Canadian dollar, and the Norwegian krone, are leading to the downside today.
The weakness in the US dollar over Q4 of 2020 saw the crude market expanding over 50% to the recent highs. The dollar is mostly higher against the major and emerging market currencies. EURGBP pulled back above the 0.8860 area that it had justbroken, while GBPUSD backed down below the 1.3700+ break level overnight, a level it took out yesterday. This is pushing up the haven-linked US Dollar, subsequently pressuring commodity and precious metal prices. The safe-haven dollar would drop when markets rise and fall if they return to gains.
As the dollar is getting a bit of strength, gold continues to weaken. The dollar was little changed.


Earnings are dominated by the bulk materials division, primarily iron ore and iron ore pellets, with minor contributions from iron ore proxies, including manganese and coal. While gold prices have been struggling to find a direction as of late, the broader view remains tilted to the upside. Buying gold is the most famous inflationary hedge, but has actually only been effective against sudden jumps in consumer prices—not the upward drift that many see as likely now.
Gold prices slumped as Treasury yields rose. Gold prices slumped as U.S. Treasury yields rose. Vale is the world’s largest iron ore miner and one of the largest diversified miners, along with BHP and Rio Tinto. Gold prices are trading down by 0.5% at Rs 49,224 per 10 grams. Gold closed relatively mixed yesterday as Wednesday’s rally ran out of steam. S&P 500 futures pointed to a loss at the open, the 10-year Treasury yield was at 1.096%, oil slid and gold dropped. The base metals division is much smaller, primarily consisting of nickel mines and smelters with a small contribution from copper.


Domestic gasoline demand fell by 45% in April 2020, and lower oil prices drove down associated gas production by potentially 10 billion cubic feet per day in 2020. I have worked in the areas of oil refining, natural gas production, synthetic fuels, ethanol production, butanol production, and various biomass to energy projects. Oil and gas producers have been forced to cut budgets, restructure operations and reduce employees, to tackle the COVID-19 pandemic-led fallout in energy demand and prices.
The company is primarily involved in the exploration and production of crude oil and natural gas. BEFORE THE BELL Futures for Canada s main stock index fell, as oil prices tumbled on demand concerns sparked by pandemic restrictions in China. less The oil and gas industry was one of the worst-hit industries in 2020 owing to the global shut down of businesses and economic activities since March last year. That is because a preliminary report from API estimated that crude oil stockpiles may have climbed over 2.56 million barrels last week.
China virus restrictions also sparked fuel demand concerns, pushing oil prices lower. With the gradual resumption of economic activity, demand for crude oil has been recovering from the all-time lows and is expected to return to near pre-pandemic levels soon. Refinitiv Oil Research is tracking a potential 222,000 tons departing of departures this week, more than double last week’s volumes.

United States

—, signaling a muted end to a strong week on Wall Street as investors awaited data on how the economy performed at the start of 2021. For context during the turbulent year of 2016, think Brexit, Trump US election victory surprise, Dacky returned +50% for the year. The latest controversy with the company was reported last week by The Wall Street Journal. Paid Post There’s a reason over 2.5 million people start their day with Morning Brew the daily email that delivers the latest news from Wall Street to Silicon Valley.
Intel reported strong Q4 earnings after the close while the US railroad company CSX Corp said volumes are improving from 2020 lows.
The increased volumes are pushing electronic brokers like Interactive Brokers and Charles Schwab to new highs, along with exchanges like ICE and Nasdaq. If, over time, investments return at a high rate Trump used 7% then the social cost of carbon will turn out small. The data since January 1999 was previously available in the St. Louis Fed’s FRED repository and is now only available for the last twelve months. After earning a Finance MBA from New York University, he spent the 1980s on Wall Street as a Eurodollar trader, equity analyst and junk bond analyst.
The special acquisition purpose company (SPAC), which is due to begin trading on the Nasdaq on Friday under the symbol “LMACU”, sold 50 million shares in its U.S. IPO.


Christine Lagarde yesterday said that the central bank might not use the entire stimulus package provoking fear that prices of European sovereigns would not be supported. That means Nissan can steer clear of the tariffs it might have faced for breaking complex rules of origin introduced by the U.K.-EU trade deal. Christine Lagarde stated that the pandemic is still posing serious risks to the eurozone economy, as lockdowns are tightened across the region. That s left more than half of firms that move goods from the European Union to the U.K. facing delays since the start of the year.
This is a clear signal that investors are wary from negative yielding debt in the periphery if the support of the ECB is not clear. less The European Central Bank (ECB) delivered its first monetary policy decision of the year. In the UK, Prime Minister Boris Johnson said the current lockdown could last until summer. less The GBP/USD made a new higher high that hit the 1.3750 target as expected in my EU-GU video.
German Chancellor Angela Merkel said it would be late September before everyone who wants to get vaccinated can get a shot. Just like at the previous ECB meeting, the one in December, the ECB delivered a mixed signal and had an even poorer communication strategy.