Close: London Session | Forex, Metals, Oil, Agriculture March 10, 2021



US corn exports were also stable this month, but the USDA did increase China’s wheat feeding level by 5 mmt which is a bit negative for corn’s foreign demand. Brazil’s slow bean harvest and late safrina corn plantings (73% vs 91% 5 yr average) remain corn’s biggest production unknown over next 8-10 weeks. In corn (CORN), the World Board also kept its 2020/21 US ending stocks unchanged. Similar to corn and beans, the USDA left wheat’s US balance sheet unchanged.
The upcoming March 31 quarterly stocks will be barometer on corn’s 2nd half feed demand. The US dollar value could be the factor if wheat hits or misses its goal. Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit.


Any signs of inflation overheating may intensify market speculation about the Fed tapering stimulus efforts and may fuel further strength in longer-dated yields as well as the US Dollar. less Gold prices fell back on Wednesday after rising more than 2% in the previous session as the U.S. Treasury yields recovered and the dollar bounced back. The dollar index retreated from recent highs due to a pullback in US sovereign bond yields as the 10-year yield dipped to 1.523%.
FOREX: The U.S. dollar rose, clawing back some of its losses sustained overnight, as U.S. yields found a floor following their drop from one-year highs. Topping the list of today’s underperforming currencies are the Australian dollar (-0.52%) and New Zealand dollar (-0.50%). Gold prices retreated slightly during the APAC session on Wednesday as the US Dollar (DXY) index rebounded alongside longer-term Treasury yields. US Treasury yields remain the overwhelming driver of the dollar and all currency pairs including the greenback.
Dollar Index DailyThe greenback opened higher but still erased the entire advance from the previous day. A decent pullback in the US Dollar (DXY) index on Tuesday offered gold prices some relief after a prolonged selloff. On the other hand, when you look at the trading activity based on the notional dollar amount, it paints a different picture.


Gold prices are trading down by 0.3% at Rs 44,740 per 10 grams. Meanwhile, silver prices are trading down by 0.6% at Rs 67,096 per kg. Spot gold is currently trading at $1,716.07 per ounce as of 0750 GMT. In the prior day, gold prices posted the biggest jump in two months as Treasury yields retreated after a strong 3-year note auction. When the gold to silver ratio peaked at an all-time record high near 125 last March, it appears to have marked a turning point.
Gold steadied after posting the biggest jump in two months and bond yields edged higher. He is an analyst at which is a website aimed at offering quality analysis of gold prices. On the macro front, gold traders are eyeing US February consumer price index data for clues about the Fed’s future tapering trajectory. Real yields exhibit a historically negative correlation with gold, with their 12-month correlation coefficient standing at -0.89. Further rises in real yields may serve to undermine gold prices, which is non-yielding.


Finally, the crude oil inventories in the United States matters for the price of oil. See also: Tanker Rates to Ship U.S. Oil to Europe Rise 80% After ColdThere are already signs that oil demand is recovering. Oil production across American shale patches next year is expected to climb as producers take advantage of a price recovery, according to a government report. 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 company also said that, despite a better outlook for oil prices, it doesn’t plan to increase operating capital spending. Daily Market Update identifies accurate price targets and turning points for indices, forex, cryptocurrencies, commodities, oil, gas, and stocks. The single biggest factor influencing changes in gasoline prices is almost always underlying changes in the price of oil. The assault on some of the world’s most protected oil infrastructure didn’t dent output, but it briefly pushed up the price of crude.
During the time gasoline prices rose by $0.46/gallon, the price of oil rose by $0.31/gallon.
They target the global economy and its oil supplies and the global energy security,” Prince Faisal said at a press conference alongside his Russian counterpart Sergei Lavrov.

United States

US stock futures are trading higher today indicating a positive opening for Wall Street indices with Dow Futures trading up by 120 points (up 0.4%). In the futures market, non-commercials as of Tuesday last week were sitting on 23,493 net shorts in Nasdaq 100 index (mini) futures. The Nasdaq touched correction territory twice in the last week and gave up its gains for the year. Asian share markets ended higher today, tracking positive closing at Wall Street in overnight trade, where the Nasdaq closed 4% higher on fresh US stimulus and expanding vaccinations.
However, they increase the US seed usage by 1 million while dropping the residual by 1 million bu after last month’s higher Ag Forum seedings. As regards market-moving news, we would like to highlight the February CPI report, since this is a key data point both for the Fed and the FX market. Futures on the Dow, S&P, NASDAQ and Russell 2000, as well as European shares oscillated ahead of the US session as investors searched for direction on Wednesday.
less Stocks celebrated, with the Nasdaq 100 having one of its best days in the last months. The Fed, meanwhile, is expected to purchase $960 billion of Treasurys, down from more than $2 trillion last year. Inflation will accordingly likely print markedly above the Fed target, also in core terms, already before summer.


Freight friction | Uncertainty about trading across the U.K. border is rising again following Brexit as shipping companies rejected more cargoes due to cross the English Channel from France. EU s new green targets hinge on banning new gas cars. Pfizer had previously committed to supply a total of 500 million vaccine doses to the European Union by the end of 2021. Vaccines are a flashpoint in post-Brexit relations, with about a third of Britons but only 6% of the European Union s population receiving a dose so far.
The ECB starts its two-day policy meeting.