Close: London Session | Forex, Metals, Oil, Agriculture June 03, 2021

Corn, wheat and oil are all shooting up, but those increases are caused by the continuing devaluation of the dollar and more dollars chasing fewer real assets. The corn sold off as traders wonder what psychological effect this will have on corn, while the soybeans traded higher. In the overnight electronic session, the July corn is currently trading at 682 ½ which is 7 ½ cents higher. Image Source: Unsplash On the Corn front, prices eased on the glowing USDA report.
Mish on Coffee and Sugar Exchange less The May manufacturing PMI increased slightly from 60.7 to 61.2.

Perhaps the Basel 3 move will trigger the event for her by driving the dollar price of gold higher, destabilising the dollar. This likely stands to intensify the Fed taper debate amongst market participants and fuel US Dollar strength in turn as traders price in the threat of Fed tapering. As of June 2, real-estate companies from China had sold $20.3 billion of dollar bonds this year, according to Refinitiv, a 16% increase over the same period last year.
More evidence of the labor market recovering revealed in tomorrow’s NFP report might help drive the US Dollar higher with Treasury bond yields. However, the lack of more aggressive price appreciation amid high inflation, ultra-loose monetary policy, depreciating dollar, and super easy fiscal policy could be seen as disturbing. Conversely, a disappointing NFP report likely stands to keep Fed taper hawks at bay and might see US Dollar bears fade the recent influx of strength. China’s yuan is strong, having risen by 10% against the US dollar over the last year, and it is likely to continue to rise.
Commodities weren‘t under pressure, the dollar wasn‘t surging (looking at the closing prices), precious metals did well, and even lumber enjoyed a white candle again. Failure to do so, the dollar is seen resuming the downtrend with the immediate contention around May’s low at 89.50 (May 25). Their analysis would most probably have been that the dollar would rapidly lose purchasing power, undermining its credibility as the world’s reserve currency.

less (Length 00:12:51) Jordan Roy-Byrne joins Cory Fleck for a look at how gold has performed compared to gold stocks, bonds, and the US markets. Note that tracking an uptick in global rates, domestic gold prices in India have risen more than Rs 5,000 per 10 grams over the past two months. In international markets, gold prices were flat, near a five-month high of US$ 1,907.7 per ounce, supported by a retreat in US bond yields. Hence, any rise in steel prices impacts the prices of vehicles, consumer goods, construction costs as steel is a raw material for these sectors.
Gold prices for the latest contract on MCX are trading up by 1% at Rs 49,650 per 10 grams. Amid a flat global trend, gold prices in India edged lower today. Gold prices are trading down by 0.1% at Rs 49,106 per 10 grams. less A number of events are coming together which are set to push gold prices higher. They are also attracting buyers with prices moving up in gold and silver.
“Domestic steel prices are at 20-25 per cent discount to international prices.

Because global oil consumption results in one of the largest contributions to atmospheric carbon dioxide emissions from any source, Big Oil is frequently blamed for climate change. I have worked in the areas of oil refining, natural gas production, synthetic fuels, ethanol production, butanol production, and various biomass to energy projects. India is one of them – world’s third largest consumer of crude oil with an import dependence of an alarming 80 percent.
Crude oil imports into the country in the last three months have slowed down because of the second wave of Covid-19 infections that have forced regional or localized lockdowns.
The heavier NOK tone is not a reflection of oil prices, which are firmer, with the help of a reported drawdown of 5.3 mln barrels by API. Capacity utilization isn‘t at the top of the pre-corona range exactly, and oil prices (these serve as additional tax, a drag on the economy) aren‘t biting nearly enough. He sees oil prices this year in the $60-$75/bbl range, though it could touch $80. Crude prices have extended gains this week on OPEC’s new outlook and because nuclear talks between Iran and world powers stalled.
Last week three members of the Big Oil club were each dealt blows regarding the status quo of their businesses. I have over 20 years of international engineering experience in the chemicals, oil and gas, and renewable energy industries, and hold several patents related to my work.

Will the reopening of the US economy lead the rent of shelter component back towards “fundamentals” such as inflation expectations, house price developments and the landlord asking rent? When former Fed Chairman Paul Volcker raised interest rates to head off runaway inflation, the market suffered badly until things came under control. The planned action comes after the Trump-era policy was challenged in court and left investors confused about the extent of its reach to subsidiary firms.
Our trend-model suggests that we can reach 7- 8% headline inflation this summer but whether it is enough to scare anyone, including the Fed, remains to be seen. When the Chinese observed the Fed going all-in on inflationary financing with zero interest rates and record QE last March, it did not take them long to respond. After all, the PCE inflation, the favorite Fed’s inflation gauge, jumped 3.1% in April, beating the expectations. However, per the last EIA short-term energy outlook released May 11, the US is expected to export 8.6 billion cubic feet per day (Bcf/d).
Philadelphia Fed President Patrick Harker said yesterday that policy makers need to start discussing the appropriate time to have those discussions. The earnings per share were expected by Wall Street experts to be around $3.31, the company reported per-share earnings of $3.66. Nasdaq Futures are trading down by 8 points (down 0.1%) while Dow Futures are trading down by 39 points (down 0.1%).

In Europe, some ECB board members suggested that the central bank should start dialing down bond purchases even though inflation expectations in Europe remain subdued. The U.K. edges closer to membership of a Pacific regional trade deal, and a U.S. food giant backs Brexit Britain. Those are among the achievable items that could flow from a pact made possible by Britain s departure from the European Union. consumers were more cautious than German and French peers last year because of concerns over Brexit, lockdowns and job prospects.
Germany failed to cut dangerous air pollution, EU court rules. Lizzy BurdenWe aim to keep you up to date on how the U.K. navigates the world after Brexit. His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc.