Close: London Session | Forex, Metals, Oil, Agriculture June 17, 2021

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Agriculture

Payment doubled Similarly, there were near double increase in cane payment received by farmers from sugar mills in the similar period. Spurring prices | Tight supplies, especially potash, and high corn prices continue to keep a hot fertilizer market surging. Spring rains showered fields in the Black Sea region, U.S. Plains and European Union, bolstering prospects for the approaching winter-wheat harvest across major suppliers. In the overnight electronic session, the July corn is currently trading 658 ½ which is 14 ½ cents lower.
In news from the engineering sector, Greaves Cotton was among the top buzzing stocks today.

Currencies

While small towns tend to be underserved by retailers, Walmart and Dollar General are holding their own and likely gained market share last year. The setback in the market should be temporary as fundamentals on supply and demand could easily compensate for a rebounding U.S. dollar. Image Source: Pixabay Dollar buying stepped up as the Fed dramatically raised its inflation expectations for this year and rolled forward the timeline for the next rate hike.
Yesterday’s dollar buying was ruled by emotions, since nobody expected the tapering timeline to be moved ahead. Against the euro, the dollar rose another 0.5% Thursday, putting at about $1.19 per euro. BEFORE THE BELL Canada’s main stock futures were nearly flat, with a stronger U.S. dollar weighing on oil and gold prices. We start with the possible bottom the US Dollar has put in and how much higher it could go from here. The note recently traded at 100.07 cents on the dollar, according to data compiled by FactSet, implying a 0.55% yield.
Commodities were hit by the US dollar’s move higher. Let’s say you owned 1,000 shares of GLD or roughly the same dollar amount in physical gold.

Metals

Citigroup assessed that going by past purchase and sales record, Beijing could have two million tonnes of copper, 800,000 tonnes of aluminium and 350,000 tonnes of zinc as reserves. No, neither ETF correlates exactly with gold prices all of the time, but GLD correlates closely enough with gold that it’s useful as a proxy. 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 for the latest contract on MCX are trading down by 1.9% at Rs 47,570 per 10 grams. We’ll show a couple of ways of doing so using the SPDR Gold Trust (GLD) as a proxy for gold below. According to industry reports, India may exceed the TRQ allowance, disbursed quarterly, for certain steel products (determined quarterly) as there is a good demand in the EU for it. Despite record fiscal and monetary stimulus, and inflation bubbling through the economy, gold was down more than 10% in the first quarter.
The GoldSwitzerland Division was created to facilitate the buying and storage of physical gold and silver for private investors, companies, trusts and pension funds. Iron ore prices are lower for the second day, while steel rebar fell for a third session. A review and update on gold’s post-FOMC market action.. Video Length: 00:05:44 I’ve been analyzing markets since 2001.

Oil

Oil prices dipped, but losses were limited by a big drop in U.S. crude oil inventories. less Global oil prices are holding up better than most commodities as the Federal Reserve starts to send signals that perhaps this inflation thing isn’t transitory after all. Suffering from this slower recovery and higher oil prices, jet fuel margins fell to a more than two-week low of $5.70/bbl, down from $6.13/bbl, Refinitiv data showed. THIS WEEK SUMMARY: European gas prices faced another bull run this week with more maintenances at LNG terminals in NEW.
In the overnight electronic session, the July crude oil is currently trading at 7207 which is 8 points lower.
The NOK has puzzlingly weakened since the announcement, and is now clearly weaker than fundamentals (oil prices) would suggest . Refinitiv Oil Research is tracking another newly built VLCC Seaduke, which is currently signaling Fujairah and is expected to load gasoil from the region. A larger than expected draw of US inventories (-7.3 mln barrels) may be helping limit oil’s pullback. We all know that despite the movement to get off fossil fuels, in the short term, the global economy still runs on oil.
On the Crude Oil front, the market retreated from multi-month highs dating back to October 2018.

United States

The US central bank projected at least two interest rate hikes in 2023, a year earlier than forecast in the March meeting. The Fed, in their new dot plot, penciled in the probability that interest rates will increase two times in the year 2023. Fed Chairman Jerome Powell Wednesday said the higher inflation recorded this year should be temporary, but the risks that it would persist couldn’t be ignored. I m happy to see the formal solo conference survive after Trump almost abandoned it in his first three years (averaging just three a year).
This month, the Fed announced it would soon start selling corporate bonds and bond exchange-traded funds acquired last year. less The FOMC’s “hawkish” dots for their June 2021 assessment weren’t an acknowledgment of recent inflation data in the US. The reason for the “shocking change” is because Jerome Powell is seeing inflation rise much faster than he and other Fed officials expected. The Fed surprised the market by signaling that it might raise interest rates at a much faster pace than initially anticipated.
The new Fed framework of waiting to see actual realized inflation could be seen as a formalized approach to that optimism. Trump shied away from solo press conferences until his final year, but did a lot of joint ones with foreign leaders and took plenty of questions in other formats.

China

Pixabay To be sure, Beijing was already moving into import-substitution strategies and took another step today. The spike has been impacting Beijing’s export and economy.

Europe

The EU competition enforcer can clear the deal with or without demanding concessions. The company has said it will pursue a dual-track tactic, launching litigation against the Commission while following the EU merger process. Evidenced by the launch of a €1 trillion Covid stimulus package this week, the destruction being wrought by the ECB is economic as well as monetary. That s the assessment of Clement Beaune, France s junior European affairs minister, who warned that the EU will retaliate if Britain leaves the Northern Ireland protocol.
The trade border down the Irish Sea that Brexit created has angered unionists. It is surprising that the EU wants to extend the measure by another three years. Lizzy BurdenWe aim to keep you up to date on how the U.K. navigates the world after Brexit. Even the ECB looks relatively moderate, compared with the British and Americans. It s a boost to Johnson s post-Brexit project for a Global Britain.

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