Close: London Session | Forex, Metals, Oil, Agriculture July 27, 2020


Moreover, we believe that volumes will show a slight increase on higher 2020 corn acreage and restocking ahead of next year’s plantation. Credit Suisse cuts target price to $39 from $40, citing weaker demand for ethanol and corn sweeteners which are likely to pose as obstacles for the company. Secondly, lower production amidst a conducive price environment sets the stage for a strong corn plantation season in 2021. It is not really true, at least in the modern era – corn stalks in a typical year would be 4 of 5 feet tall by early July. Looking at the details, corn planted area for all purposes in 2020 is estimated at 92.0 million acres, higher by 2.31 million acres from last year. We recommend building positions in CF Industries and believe that upturn in the nitrogen and corn markets along with low business risk will propel the stock. A crucial fact is that nitrogen is highly dependent on corn plantation and is a defensive plant nutrient.


This benchmark, which measures the dollar’s value via a basket of major currencies, ended the week at its lowest level since October 2018. The US Dollar Index fell a hefty 1.6% last week, marking the fifth straight week of decline. The dollar has crashed to 19-month lows… Gold is surging to a record high. The Canadian dollar often lags behind the other major currencies in moves against the US dollar. The ICE U.S. Dollar Index, which measures the greenback against a basket of other currencies, weakened 0.6% Monday to its lowest level since September 2018, according to FactSet. During the bull market years between 2000 and 2011, the US dollar and currencies played a key role in the PM complex bull market. Dalio, who famously said “cash is trash” in Davos in 2020, saw his bearish dollar narrative implode in March when the dollar was the ultimate haven currency.


Gold rushThe recent rally in gold continued with the precious metal rising to a record $1,944.71 an ounce in trading this morning. Gold has also benefited — in fact, more money went into the S&P Gold ETF than any other exchange traded fund last quarter. Gold’s recent vertical leap higher would likely reverse as real yields higher usually means gold lower. The producers don’t buy gold and the swap dealers are hedged (long gold and short equivalent futures). Silver and gold prices have been trading at historic levels, with the yellow metal hitting a new record high, just over $1,933, earlier today. With all of the excitement with a rising stock market and record prices on gold and explosive moves in silver, oil seems to be a bit left out. Follow Silver and gold prices have been trading at historic levels, with the yellow metal hitting a new record high, just over $1,933, earlier today.


Now those write-offs or impairments only signal those type of problems if oil and gas prices remain at current low levels. MARKETS TODAY OIL: Oil prices edged lower as rising coronavirus cases and tensions between the United States and China pushed investors toward safe-haven assets. If, however, you believe that oil and gas prices will recover, then the valuation allowance is simply a necessary accounting procedure caused by abnormally weak oil and gas prices. There has not been any significant M&A activity this year in the energy sector with oil prices collapsing due to the COVID-19 pandemic. Production was slightly below the company’s target of 430,000 bpd of oil and 2,857 mmcfd of gas this year. In my opinion, it will be the last oil segment to recover, and it is more effective to invest in the oil supermajors now. The declines are the result of a sharp drop in drilling activity because of low natural gas and crude oil prices and because of production curtailments.

United States

less Despite the surging stock market from the March lows, trillions in liquidity support from the Fed, retirement confidence declined. Authored by Lance Roberts via, Despite the surging stock market from the March lows, trillions in liquidity support from the Fed, retirement confidence declined. Share The pandemic has fed investors’ appetite for volatility trading, a market tactic that allows traders to bet on big market swings. In the age of rising market power, only six well-known high tech stocks now represent around 49% of the Nasdaq. Folks might not realize it yet, but creating competition to the US treasury market is the first step to destroy the invincible aura that the Fed currently holds. Despite a massive surge in the markets from the “Pandemic” lows, trillions in market support from the Fed, and household support from the Government, “retirement confidence” continues to erode. However, as the stock market pays more attention to “big tech”, or the NASDAQ companies, AT&T is increasingly glossed over.


Flag down | Chinese authorities have taken over the U.S. consulate in Chengdu following its closure, the latest historic milestone marking the deterioration in relations between Washington and Beijing. Beijing slammed Friday’s “forced entry” into its Houston mission by U.S. federal agents and local authorities, saying the move broke diplomatic conventions. They fear the government will question, undermine or disqualify candidates who ve criticized the local administration and Beijing.


Likely, this plan will have to be overhauled during the following months, creating new tipping points for the EU. Domestics factors remain the key stumbling block for the Pound (FXB) with the lack of progress in EU-UK trade talks the main source of concern. The tremendous growth of IQOS in key markets, the EU and Eastern Europe may have actually accelerated decline in traditional volumes for the quarter. The dilemma is hardly new, but since the Brexit vote the choices involved have become starker, Martin Ivens writes for Bloomberg Opinion. Call of duty | The EU let its member countries suspend import duties on medical equipment needed to fight the coronavirus for three more months. For now, the ECB economists see bright spots ahead, as a pickup in global value chain activity could also amplify trade. Meanwhile, a German industry official said the failure of trade talks between the EU and Britain is almost inevitable.