Close: London Session | Forex, Metals, Oil, Agriculture July 21, 2021

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Agriculture

Income gains and urbanisation are likely to drive per capita consumption of sugar, especially in Asia where the per capita availability is relatively low. While Brazil’s sugar production is projected to increase to 41.0 ml t, production in India is forecast to reach 35.6 ml t by 2030. The Indian sugar sector deserves end-to-end reforms so as to become globally competitive in the true sense of the term. For the next 10 years, Brazil will continue to remain the leading sugar exporter, followed by Thailand and India.
In the context of India’s sugar sector, there are some critical issues that deserve attention. These include water-intensity of crop, disposal of surplus sugar and export subsidy. However, the intense political interest in the sugar sector is well-known. Higher consumption will be triggered by expanding demand for sugar-rich confectionery products and soft drinks.

Currencies

less Gold prices traded modestly lower during Wednesday’s APAC session amid a stronger US Dollar and higher yields. Strong EU earnings reports overshadow the Delta covid variant-related concerns, for the time being, offering a little boost to the market sentiment while weighing on the safe-haven dollar. In the first three months of this year, that led to a strong dollar rally from a low of 89.4 in early January to the March high. Image Source: Pixabay The US dollar remains underpinned by short-term channel support with the DXY now approaching its first major test of resistance, the March 31 high at 93.47.
The ICE U.S. Dollar Index, which measures the greenback against the currencies of major trading partners, rose above 93 on Wednesday morning, according to FactSet. less The upside momentum in the dollar remains well and sound and lifts to fresh multi-month peaks around 93.20. Most of the major currencies are trading slightly heavier against the US dollar.
The Scandis and New Zealand dollar are the most resilient today. But the dollar overshadowed its appeal as a safe-haven asset. less The EURUSD pair continued to trend moderately lower on Tuesday, July 20.

Metals

Physical investment demand for silver this year is expected to be 26 per cent higher than last year at 252.8 moz. Price forecastsThe Silver Institute has forecast silver prices to average at $27.30 an ounce against $20.55 last year. The most bearish confirmation of the bearish price prediction for gold doesn’t come from the USD Index but from the extreme underperformance of gold stocks relative to gold. Bank of America, in its note for commodity investors, said that it favoured silver over gold as an investment strategy due to this reason.
The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. US multinational investment bank JP Morgan has forecast silver to average at $26.5, while another Bank of America sees the metal averaging at $29.28 an ounce. Real yields and gold prices historically exhibited a negative relationship, as rising yields mean that the opportunity cost of holding the non-interest-bearing metal is higher.
Radomski is the author of Sunshine Profits’ Gold & Silver Trading Alerts and many of company’s investment tools. less Silver staged a goodish intraday bounce from the $24.75 area, or the lowest level since April 13 touched earlier this Wednesday. Spot gold is currently trading at $1,806.99 per ounce as of 0740 GMT.

Oil

Its stock price is up 14.3% YTD, recovering from the pandemic lows as the crude oil price recovers from negative territory. less Chevron is an integrated oil and gas corporation, one of the energy giants with a global presence. The weakness was short-lived, however, as the price of oil recovered all its lost ground, triggering a bullish move in energy stocks, too. The decline in the price of oil at the start of the pandemic put tremendous pressure on energy stocks.
Oil and gas royalty trusts are niche securities within the stock market. Even last year, global LNG volumes were flat, contrasting with crude oil where global demand was down 7%.
Although oil garners most attention, natural gas is at least as important to North American midstream, energy infrastructure. less Crude oil fell sharply on Monday, hit by the long-awaited confirmation of increased production from OPEC and growing concerns about the Delta COVID variant. Global prices have been rising, even recently when oil prices have weakened. Some well-known oil and gas royalty trusts include BP Prudhoe Bay Royalty Trust (BPT) and Permian Basin Royalty Trust (PBT).

United States

That bolstered investors’ confidence that the Fed would let the economy run hot, creating sustained inflation that the central bank could later control with well-timed rate increases. less After a slow start to the week in which the Nasdaq price shed around 200 points, the last session has been a positive one. Some financial analysts are predicting that the Nasdaq price will continue shooting forward and even flirt with the 18000 mark by end of the year.
Adding to the rise were signals from Fed officials that they would hold off raising interest rates until after inflation climbed above their 2% target for a sustained period. However, the last session was extremely positive for the Nasdaq index which rose by around 1% to the $14728 level. The initiative is part of a race on Wall Street, as large investment firms bankroll competing power projects amid a national pushto revamp electrical infrastructure. Deaths from drug overdoses in the US rose by 30% in the past year, a jump at least partially blamed on COVID lockdowns.
Today, Wall Street continues to use Zacks research including the Zacks Rank and Zacks Equity Research, which combines the best of quantitative and qualitative analysis. less Earlier this month I outlined a model for estimating the US stock market’s return in the decade ahead. After reaching a high of 14980 on 14 July, the Nasdaq price descended steeply over three sessions even down to a low of 14522 on 19 July.

Europe

With enough vaccinations administered to cover about 50% of the European Union s population, it s time to live with the virus, as one French government minister put it. European Union targets the end of fossil fuels with landmark climate proposals. His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc.

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