Close: London Session | Forex, Metals, Oil, Agriculture March 04, 2021



Cotton yarn prices gain sharply on surging cotton rates, demandAt the same time, prices of Shankar-6 cotton, the benchmark for exports, in India are quoting below ₹47,000 a candy. Yarn importsBesides cotton, there is also a demand for the import of cotton yarn. The Committee on Cotton Production and Consumption (CCPC), a body representing all stakeholders in the textile industry including government officials, has estimated the carryover stocks at 120 lakh bales.
Earlier, it imposed a 11 per cent import duty.Signs from Pakistan are ambiguous, particularly after Imran Khan headed a meeting yesterday on surging cotton yarn prices. Pakistan spinning mills could stand to gain from this as cotton could be transported by trucks across the border or even shipped from one of the western ports. Since the beginning of this year, cotton prices have increased by over 11 per cent in the global market. Cotton Association of India has projected the output at 360 lakh bales, the same as last year.
According to the Cotton Association of India (CAI), the carryover stocks are 125 lakh bales. But the value-added textile manufacturers have demanded permission to import cotton yarn from India, pointing to how Islamabad has allowed Indian drugs and pharmaceuticals to be imported. Pakistan’s crop is lower as farmers cut cotton planting by 10 per cent, while the crop was hit by a heavy monsoon and severe pest infestation.


Most investors and analysts have been predicting falls for the dollar against a basket of currencies in the ICE U.S. Dollar Index since the U.S. presidential election in November. “However, with the softer dollar environments and strong dollar inflows are in place, the risk is skewed for higher rupee. Some worry that if the dollar keeps strengthening, it could hurt recoveries in emerging markets that rely more on dollar funding. The dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.27 per cent to 91.19.
The rupee depreciated for the first time in three sessions as the US dollar continued to move higher, said Sriram Iyer, Senior Research Analyst at Reliance Securities. According to Dilip Parmar, Research Analyst, HDFC Securities, Indian rupee dropped after a two-day winning streak as the dollar index hovered near a one-month high. Dollar Tree Inc: RBC cuts target price to $125 from $129, noting the company s declining EBIT margin in its fourth quarter and lower EPS estimates for 2021.
The dollar index advanced and spot gold prices edged up. It is also at odds with large bets against the dollar in derivatives markets. Share Photo: lee jae won/Reuters By Paul J. Davies Close March 4, 2021 10:11 am ET The U.S. dollar is confounding expectations that it would fall this year.


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. The gold coins are available in various denominations ranging from 1 gram to 8 gram and 22 carat gold jewellery on demand. The customers will now be able to purchase 24 carat gold coins and 916 gold jewellery of distinctive designs from all Muthoottu M. Mathew Group branches. The high quality 999 gold imported through various banks is being used to manufacture these gold coins and jewellery.
Gold prices for the latest contract on MCX are trading down by 0.3% at Rs 44,835 per 10 grams. Gold prices are trading down 0.4% at Rs 44,783 per 10 grams. There is always a surge in customer demand for gold jewellery, which facilitated the company to formalise the new platform – solely for its customers, he said. On MCX, gold futures fell 0.4% to 10-month low of Rs 44,768 per 10 grams. Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic.
In the previous session, gold had dipped 1.2% or Rs 600 per 10 grams.


I have worked in the areas of oil refining, natural gas production, synthetic fuels, ethanol production, butanol production, and various biomass to energy projects. The OPEC+ Joint Ministerial Monitoring Committee (JMMC) popped oil prices after they failed to meet without any recommendations on oil production. Oil prices are on the rise for a second straight days= on the possibility that OPEC+ may decide against increasing output (OIL, BNO). Onshore fuel oil stocks jumped by 1.509 million barrels, or about 238,000 tonnes, to 19.379 million barrels, or 3.449 million tonnes, Enterprise Singapore data showed.
The EIA reported that U.S. commercial crude oil inventories increased by 21.6 million barrels from the previous week. An uptick in crude and natural gas prices has given operators some respite after a tumultuous 2020, when the COVID-19 pandemic wiped out one-fifth of global demand for fuel. OPEC Plus will not see opposition from the Biden administration whose quite clearly in favor of higher oil and gas prices.
Pradhan said at the CERAWeek conference by IHS Markit that India, where fuel demand is recovering to pre-pandemic levels, would like to rely on reasonable and responsible oil prices. At 484.6 million barrels, U.S. crude oil inventories are about 3% above the five-year average for this time of year. Bears should keep in mind that as long as the series of higher highs and higher lows holds, crude oil will have a hard time reversing.

United States

US stock futures are trading lower today indicating a weak opening for Wall Street indices with the Dow Futures trading down by 87 points (down 0.3%). less Well, right on cue, it looks like the endless creation of fake money by the Fed has now poisoned both the stock market and the bond market. Nasdaq Futures are trading down 103 points (down 0.8%) while Dow Futures are trading down by 101 points (down 0.3%) The rupee is trading at 72.73 against the US$.
On the one hand, with every stock market decline, the market participants expect the Fed to intervene. Mr. Biden’s Middle Class First foreign policy would look a lot like President Trump’s America First if summoned to truly underwrite the Third World. US stock futures are trading lower today, indicating a negative opening for Wall Street. Investors look to Fed for next steps as Twist speculation ramps up After a searing U.S. bond selloff, markets are laser-focused on Federal Reserve Chair Jerome Powell’s next move.
Market participants remain cautious ahead of the important non-farm payrolls number that will be released from the US tomorrow,” Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services. With markets suddenly worried about inflation caused by a much-faster-than-previously expected forecast, Powell will have to convince investors that Fed policy is on the right path. So the US economy in GDP terms is proving far more resilient than most western nations due to stimulus bailouts and weaker lockdown measures than elsewhere.


Instead, Beijing and Moscow like those thorns in America’s side.


Upward revisions to the ECB’s growth and inflation forecasts, which we expect to see (see more below), should thus support tolerance towards somewhat higher yields. We do not expect the ECB to offer any concrete targets on any financial market variables, leaving the market guessing on what exactly preserving easy financing conditions means. The weekly buying volumes in the PEPP strongly suggest the ECB has not become hugely worried about the recent increase in bond yields.
The case for clarifying the ECB’s reaction function regarding rising yields at next week’s monetary policy meeting is thus obvious. It could form the basis for a new consensus, particularly in the European Union, where nations are also trying to ease up on fiscal discipline without going too far. Most importantly, even if the lockdowns continue to make the coming weeks challenging, we expect that the ECB will be more optimistic regarding the timetable for vaccinations. Post-divorce dispute | The EU said it will take legal action against the U.K. for breaching their Brexit deal, as tensions between the two sides escalated.
Now we assume the ECB staff to draw a faster timeline for the recovery and also indicate that the downside risks have somewhat declined due to the vaccines.
In December, the ECB staff assumed that a concomitant relaxation of containment measures is assumed to take place with a broad resolution of the health crisis by early 2022. More verbal interventions will be ahead next week, but the ECB is not about to introduce concrete yield or spread targets.