Close: London Session | Forex, Metals, Oil, Agriculture July 27, 2021

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Agriculture

Coffee futures have climbed 30% in July and almost doubled over the past year, snapping a yearslong stretch of depressed prices that prompted many farmers to abandon their fields. Last week, coffee futures surged the most in seven years, as drought and frost are causing problems with crops in Brazil. less Share Coffee prices are heating up, and experts say an even bigger price hike could be coming. Investors, meanwhile, are trying to gauge the ability of companies to pass on higher prices for materials like copper, PVC and coffee to consumers.
Major coffee companies may offer insights into how their business has been affected when Starbucks Corp. reports earnings after markets close Tuesday, followed by Switzerland’s Nestlé SA on Thursday. WSJ explains the web of economic forces that help determine the cost of coffee.

Currencies

The US Dollar and real yields might be facing downward pressure due to changes in positioning ahead of Wednesday’s Fed rate decision as well. Global investors, many of whom believed the developer was too big to fail, bought up its high-yielding U.S. dollar bonds to earn fat returns. The property developer, which was founded in 1996, is Asia’s second-largest issuer of U.S. dollar junk bonds after Japan’s SoftBank Group Corp. , according to Refinitiv. The last meeting’s results were broadly interpreted as hawkish, and we saw the dollar gain strength.
Sort of: The substantial additional easing of our monetary policy stance supports and reinforces the emergence of more favourable developments for the euro area economy. A stronger dollar may offset the lower yields as a consideration. On Tuesday, EURUSD has been on a downward trajectory, moving from the upper to the lower bound of a descending channel. If stocks continue to extend their gains, the U.S. Dollar and Japanese Yen will weaken.
The Dollar-Yen is nevertheless vulnerable to a bearish trend that has developed since last Friday’s peak. The dollar is bid.

Metals

He is well known for combining technical, fundamental and sentiment analysis into one accurate conclusion about the gold market. Industrial metals have been knocked back by reports suggesting China is considering new export tariffs on steel. It appeared to have an immediate effect of sending iron ore and steel rebar prices lower. He writes a bi-weekly in-depth analysis for one of Germany´s largest gold and silver retailer the “pro aurum group”. As well he is publishing his bi-weekly comprehensive for his numerous international readers focusing on Gold, Silver, Mining, commodities and cryptocurrencies.
Fero Labs, based in the U.S. and Germany, uses machine learning to improve energy efficiency at cement, steel and chemical companies. Gold prices for the latest contract on MCX are trading up by 0.1% at Rs 47,500 per 10 grams. However, nickel, which is needed in the new batteries, proved resilient and is at new multi-year highs. This seems more in the containing commodity prices and rationalizing the steel sector.
Arkadiusz is the author of the monthly Market Overview reports and Gold Monitor News at Sunshine Profits.

Oil

However, despite the sharp decline in oil consumption, oil remained on top with a 31.2% share of all energy consumption. The remainder of global energy consumption came from coal (27.2%), natural gas (24.7%), hydropower (6.9%), renewables (5.7%), and nuclear power (4.3%). For example, as I will detail below, oil demand fell dramatically last year, but we already know that it has largely recovered in 2021. Small declines were also reported in coal, natural gas, and nuclear consumption, while renewables and hydropower recorded gains.
Crude oil is trading just above the 72 handle after last week’s rebound as prices moderate in recent days.
During a six-year stretch at ConocoPhillips, Robert ran a team of engineers in Scotland working on oil and gas projects in the North Sea. About three-fourths of the decline came from oil, as the pandemic dramatically impacted the world’s transportation systems. Meanwhile, Chinese oil imports fell to a multi-year low for the first half of the year in June. China uses a quota system to limit the amount of oil private refiners can order. Oil is sidelined, and the September WTI contract is little changed, around $72 a barrel.

United States

Haris Anwar/Investing.com Follow When Apple (NASDAQ:AAPL) reports its latest earnings later today, investors are confident the iPhone-maker will again exceed expectations and produce another blockbuster quarter. When Apple (NASDAQ:AAPL) reports its latest earnings later today, investors are confident the iPhone-maker will again exceed expectations and produce another blockbuster quarter. Currently S&P futures are down 5 points, Dow Futures are down 66 points and Nasdaq 100 futures are up 7 points.
The Fed has insisted that they will signal the taper “well in advance”, to avoid another taper tantrum, like the one that happened after the 2009 crisis. less Beijing’s crackdown on its education and tutoring industry continued Tuesday, further rattling Chinese stocks traded in Hong Kong and the US. Dallas Fed manufacturing is also weaker, down 3.8pts in July to 27.3. less Investors are back to focusing on what the Fed does, rather than anything it says.
MTI uses two business cycle indexes as inputs: ADS Index, published by the Philly Fed, and the Weekly Economic Index (WEI) via the New York Fed. Add to it, the US markets seemed nervous ahead of the Federal Reserve’s two-day monetary policy meeting that kicks off later in the day. If the economy has continued to grow faster than expectations, then the Fed will be more eager to tighten policy. less The ECB has become the exact opposite of the Fed in terms of monetary policy.

China

Beijing rolled back import quotas for this year’s second batch issuance, reportedly by as much as 35% from 2020. Crackdowns like the one on tutoring likely won’t extend to most other sectors, but Beijing has sent a clear message nonetheless. The Hang Seng fell 4.22% and the CSI 300 fell 3.53%, spurred by continuing fears about increased corporate regulation coming from Beijing. The capital inflows were to create conditions under which Beijing could ease capital outflow restrictions.
less Cathie WoodSource: CNBCARK Invest’s Cathie Wood is selling Chinese stocks in droves amid a crackdown in Beijing.

Europe

Previously, the ECB maintained that it would keep the interest rates unchanged until inflation expectations converge with the central bank’s target. Violating rules | China s environment ministry slammed the European Union s proposed carbon border tax, saying Monday that the policy unnecessarily creates climate-related trade friction. It was an important event, as it was the first meeting since the adoption of the new ECB’s strategy, and as the ECB has introduced some changes.
less When the ECB’s leadership presented their first QE to the assembled media on March 5, 2015, there was a lot of the usual corporate-speak. No, on this occasion, to the contrary, Mario Draghi, the ECB’s President, wanted to be perfectly clear in what he was saying. 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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