Close: London Session | Forex, Metals, Oil, Agriculture June 01, 2021



Image Source: Unsplash On the Corn front, the market is coming in strong and we will be flirting with $7 corn before you know it. In the overnight electronic session, the July corn is currently trading at 665 which is 8 ¼ cents higher. Dry weather concerns and China demand will be the mover and shaker in this market in the coming weeks. Export Inspections could rekindle whispers of $8 corn.


The US dollar fell against most major currencies following the PBOC’s modest move to reduce the upward pressure on the yuan. Bullion has surged over 13% since early April, underpinned by a weakening US Dollar and growing inflationary pressure. The DXY US Dollar Index is hovering near a five-month low of 89.78, offering an additional pillar of support to the precious metal. The RBA rate statement in Asia brought nothing new for the Australian dollar traders, as the central bank kept the policy unchanged.
If the number fails to meet an estimation of 650k, this could lead to a deeper pullback in the US Dollar and buoy bullion prices. The US dollar continues its decline, unable to hold onto any gains. Target Inflation in the euro area climbed to 2% in May, the highest level in more than two years. However, the dollar found a bid in the European morning, while the Scandi currencies held on to most of their earlier gains. June started just how May ended – with a weak dollar and strong equities.
Also, two Fed members are giving a speech, potentially moving the dollar.


In 2002 when gold was $300 per ounce, MAM recommended to its investors to put 50% of their investment assets into physical gold stored outside the banking system. Gold prices edged higher in Indian markets today, supported by positive global cues. Gold prices for the latest contract on MCX are trading up by 0.6% at Rs 49,100 per 10 grams. Real yield has historically exhibited a negative relationship with gold prices, because it serves as a good proxy of the opportunity cost to hold the non-interest-bearing precious metal.
Gold prices are trading up by 0.6% at Rs 49,121 per 10 grams. less Gold prices traded higher toward a fresh four-month high during Tuesday’s APAC session. The GoldSwitzerland Division was created to facilitate the buying and storage of physical gold and silver for private investors, companies, trusts and pension funds. What does the budget for the next fiscal year mean for gold prices? August gold futures on MCX were up 0.2% to Rs 49,469 per 10 grams.
In this mix, more and more institutional investors are recognizing the need to diversify their portfolios with gold as a stable currency and inflation hedge.


Demand is recovering faster than supply as U.S. Rig counts rose only 3 last week and crude oil inventories are falling. Source: FRED Crude oil prices extended higher above a key resistance level of $ 67.00 after the OPEC+ painted a positive outlook for global energy demand. If OPEC Plus stays on course and Iran oil’s comeback is delayed that should get WTI oil solidly above $70 a barrel. Prior week estimates were revised up by 160,000 MT after three tankers were concluded to be discharging Iranian fuel oil at Fujairah this week.
Ust-Luga loaded 3.63 mmbbl of oil, up from 2.18 mmbbl in the previous week. Image Source: Unsplash Oil prices hit the highest level since 2018 as the global economy reopens, global inventories fall. Fuel oil exports from the United Arab Emirates softened considerably last week, falling 267,000 MT w-o-w to 150,000 MT. In the meantime, global demand is rising, and the world is more than likely headed towards an oil supply squeeze.
Iraq was the top exporter of fuel oil through the latest assessment period, loading 200,000 MT, versus 457,000 MT the week prior.
Around 21.87 mmbbl of crude were loaded from West Africa last week, down from 22.38 mmbbl a week earlier.

United States

Fed officials are starting to hint at tapering asset purchases, part of their communication strategy to prepare investors for the long glide path to reducing the pace of buying. Starting with New York Harbor (NYH) ULSD, we see front month ULSD as a differential (diff) to front month NYMEX ULSD at -0.03/cents per gallon (cpg). US DIESEL IMPORTS: the US diesel trade picture moved back into normalcy last week, with the situation returning to net export.
S&P futures are up 16.5 points at 4,219, Dow futures are up 171 points at 34,684 and Nasdaq futures are up 48 points at 13,734. Biden trumped Trump and proposed $6 trillion, over one trillion more than Trump in his last year’s proposal for $4.8 trillion. This week, however, the US only accounts for 40,000 bpd of the total, with India sending over 105,000 bpd and the UAE completing the total with nearly 82,000 bpd. The recent run-up in GameStop and other stocks involves investors in opposing camps: traditional Wall Street firms and small investors who are bucking the system.
US stock futures are trading higher today, indicating a positive opening for Wall Street. May arrivals closed just under 195,000 tons according to Refinitiv tracking data, slightly up from April which saw 145,000 tons arrive from the US. That is one better than this week, with no jet fuel exports from the US currently on the manifest.


On the one side, the ECB is fighting to keep financing conditions easy by keeping the pace of PEPP purchases “significantly higher” and thus supporting yield levels and spreads. Merkel is sending a high-ranking negotiating team to Washington this week to discuss the controversial Nord Stream 2 pipeline project, Funke media group reported. ECB Tapering could be a good reason to buy DGBs ECB support for government bond yields is a double-edged sword at the current juncture.
Once ECB tapering begins, we would expect DGBs to perform relative to semi-core once again provided that the general sentiment towards Danish bonds don’t suffer further. Merkel Is Ready to Give Up Lockdown Powers Latest sign that pandemic is releasing its grip on Europe s largest economy. European Union moves to close ivory trade loopholes, but it may be too little too late for the world s elephants. By now, I have built up excellent skills and experience in analyzing macroeconomic and political developments in Europe, the Eurozone and Germany, including ECB watching.
DGBs performed relative to semi-core during ECB tapering in 2018. His feature articles have been published on:,, Action forex, Forex TV, Istockanalyst, ForexFactory,,, etc. ECB support is about to be tapered, albeit very slowly.