Close: London Session | Forex, Metals, Oil, Agriculture July 23, 2020



I believe the company is highly likely to weather through the recession with its balance sheet relatively intact and return to its normal run-rate after the pandemic passes. Sugar prices at the Vashi wholesale market firmed up by ₹8-10 a quintal tracking eased selling at naka level. However, frequent changes in the short-range weather models will obviously generate some volatility. Meanwhile, Bloomberg plaintively tries to report that, yes, China is still buying US soybeans. But continuous selling by mills kept the sugar tender rates steady. Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit. The weather cleared up before the halfway mark, and they got to go swimming with dolphins along with other amazing experiences.


Three-year rolling correlations show a breakdown between balance sheet growth and trade-weighted indexes for the euro, dollar, and yen – currencies of countries that leveraged QE during the GFC. Today would be the fourth consecutive decline in the US dollar and matches the longest depreciating streak of the year. Higher-than-expected June CPI readings from Canada yesterday helped push the US dollar to CAD1.3400 yesterday, and follow-through selling today has seen the greenback fall to almost CAD1.3370. If anything, the U.S. dollar’s 62% share of global foreign exchange reserves—often referenced as evidence of the currency’s importance internationally—may even understate its role. As long as the US dollar continues to fall in value overall, that will work in favor of the silver markets. Precious metal stocks and Treasury bonds have all risen on the weakening dollar as foreign investors take advantage of the cheapening stocks. As well, at $45 WTI oil, Laredo’s unsecured bonds would be worth around 85 cents on the dollar assuming a 3.0x multiple.


Later on in 2008, he began researching areas of the gold and silver market that, curiously, the majority of the precious metal analyst community have left unexplored. I am a 25 year old Gold and Silver stacker, and precious metals enthusiast. Using today’s gold price, this ratio implies silver is worth just under $100 per ounce. It’s possible silver hits triple digits.Beyond its relationship to gold, the risk of inflation and negative real yields provides further support for precious metals. Gold’s boring cousin Silver has rallied about 100% since the March lows (compared with Gold up 27%). Let’s set aside speculation about investor demand for silver and instead focus on silver’s historical relationship to gold. It would be unreasonable to simply argue that silver prices should rise because gold prices are rising.


It also appears able to maintain total production (and increase oil production) from Q4 2020 levels at current strip of $43 WTI oil for 2021 without cash burn. The U.S. oil major said on Wednesday that it agreed to buy land from Kelt Exploration in Canada’s Montney shale oil play, in a $375 million deal. At that level of debt and 2021 production levels, Laredo’s leverage would be 3.4x at $45 WTI oil, 2.9x at $50 WTI oil and 2.7x at $55 WTI oil. Groundnut oil (Indore) was quoted at ₹1,310-₹1,320, groundnut oil (Gujarat) at ₹1,275, while groundnut oil (Bombay) ruled at ₹1,310 for 10 kg respectively. Just about all the U.S. domestic oil production growth from 2007 to 2019 came from shale oil (tight oil). Chevron Is Installing Solar Panels To Produce Oil More Cheaply Solar is powering oil pumps at a Chevron oil field in California. The Howard County wells are forecasted to have 80% oil production during their first year, contributing to Laredo’s increased oil production while its total production remains flat.

United States

One of the key questions being asked by market participants is how this might affect the next political strategy of President Trump. Mr. Mnuchin said , arguing that such a measure offers more immediate benefits to people struggling as a result of the economic fallout from the pandemic. Policy lags — the time between the Fed’s actions and the resulting economic outcomes — mean inflation will subsequently rise above 2%. The Fed’s traditional Phillips curve approach to forecasting inflation, which relies on the theory that inflation accelerates as unemployment falls, was widely criticized during the most recent economic recovery. But that’s the important point: the Fed reacted proactively, used its financial crisis playbook, added some new “wrinkles” and prevented a run at the all-time high. The social media company missed Wall Street’s lowered expectations for quarterly revenue despite surging usage, as the coronavirus-spurred economic slowdown battered the company’s largely events-oriented digital ads business.

In practice, that means the Fed will not just emphasize actual inflation over forecasted inflation, but will also attempt to push the inflate rate above its 2% target.


European stocks and US equity futures advanced as investors monitored earnings pouring in and seemed to look past the latest tensions between Beijing and Washington. China Central Television (CCTV) has “demoted” Premier League football matches amid the escalating diplomatic row between Beijing and the British government, according to reports. With Beijing vowing that it will respond in kind, that sent the Chinese Yuan (CYB) to a 2-month low yesterday, with a slight reversal today. It s another blow to a city already reeling from months of unruly anti-Beijing street protests followed by the pandemic s emergence. Red card | Chinese state television is taking English Premier League soccer matches off the air, amid increasingly strained political relations between Beijing and London. Chinese President Xi Jinping also faces a crucial leadership test in 2022, when he will vie to continue his indefinite rule in a break from his predecessors. Currency strategists say that the retaliation will likely offer some guidance as to how Beijing intends to engage as we move closer to the November elections.


Even a UK-EU FTA (free trade agreement) will not allow Japanese companies to maintain current supply chains,” she said. News > UK > UK Politics A Brexit trade deal is now looking “unlikely” because of British intransigence on key issues, the EU’s chief negotiator has warned. Investors earlier appeared to shrug off China-U.S. tensions, and Italy’s benchmark bond yields fell below 1% for the first time since March, buoyed by the EU’s recovery pact. “We don’t have a free trade agreement [with the EU, so] you would need a substantially greater number of customs agents,” he said. With the coronavirus pandemic weighing heavily on Europe’s economy, the EU is now arguing that softer rules on the finance industry are needed to help the recovery. After a period of intense debate and discussion over several days, European Union (EU) leaders finally reached an agreement on a €750 billion (US$858 billion) COVID-19 rescue plan. The European Union has a trade deal with Japan, but Britain will no longer benefit from it from the start of 2021 when the Brexit transition period ends.