Close: London Session | Forex, Metals, Oil, Agriculture March 16, 2021



Wheat a sec | Russia s complicated wheat export taxes could disrupt trade from the world s top shipper just as the next crop begins filling silos. I began predicting this quite early, about 7-10 days ago, and suggested adjusting our portfolio accordingly as per my more bearish outlook in wheat. It is hard to gauge from one day to the next, which outside fundamental factors will influence soybeans.


Import price deflation is normally associated with the strengthening of the dollar relative to other currencies. “Indian Rupee depreciated amid strong dollar and muted domestic markets. ● NIO’s 4Q profit was affected by the strong yuan and weak dollar. Nonetheless, yields on Germany’s 10-year bonds, which are a benchmark for the euro area, declined to below minus 0.33% Monday, about 3 basis points lower than on Friday. The dollar is mostly firmer. Sterling, the dollar-bloc, and the Norwegian krone are bearing the brunt, while the Swiss franc and Swedish krona are the most resilient.


However, as the global economy has gradually reopened and the demand for steel has picked back up, the steel industry is poised to make a strong comeback. In global markets, gold prices were flat today ahead of the outcome of a U.S. Federal Reserve policy meeting. Gold prices are trading up by 0.2% at Rs 44,980 per 10 grams. Gold is trading quietly near last week’s high ($1740) It was the third month of purchases and the most since 2017. Source: Unsplash The global lockdown and subsequent social distancing restrictions compelled by the COVID-19 pandemic caused the steel industry to plummet over the first two quarters of 2020.
The near halt in industrial and manufacturing activities in China contributed significantly to a global supply glut because China is the world’s largest consumer of steel. On MCX, gold futures were flat at Rs 44,930 per 10 grams. So Monday I bought silver mining stocks WPM and PAAS along with gold miner FNV. Amid weak global cues, gold prices struggled in Indian markets.
In other words, despite some bounces here and there, unless the correlation breaks, the price of gold will remain under pressure.


The reports have rattled the oil markets that have been betting that the amazing comeback in global oil demand was going to continue. Refinitiv Oil Research identified one Aframax parcel thought to have discharged 80,000 MT of Iranian fuel oil at Fujairah. Oil prices dropped as rising stockpiles in the U.S. added to the risks to a demand recovery after countries including Germany and France halted COVID-19 vaccinations. China is still sucking down oil yet oil struggles as vaccine safety concerns rise.
Crude benchmarks have steadily climbed throughout 2021 as major oil producers restrained supply and coronavirus vaccine distribution quickened, feeding hopes of stronger economies and fuel demand. Four fuel oil cargoes loaded in Saudi Arabia last week, all of which discharged at domestic Red Sea ports. There was an upward revision of 200,000 MT to prior week exports as three additional fuel oil cargoes were observed. That said, even if warmer weather doesn’t manifest this week as the NOAA’s forecast lays out, natural gas prices face decreased demand going into the summer.
Fuel oil exports from Saudi Arabia fell by 140,000 MT w-o-w, with no export cargoes observed. Results are still pending for BPCL s 30,000 MT 120-cst 0.5%S very low sulfur fuel oil tender, prompt delivery.

United States

Futures on the NASDAQ were the only US contracts in the green ahead of the US session on Tuesday as traders expect the technology sector to continue its rebound. US stock futures are trading lower today indicating a negative opening for Wall Street indices with Dow Futures trading down by 59 points (down 0.2%). Contracts for the technology-focused Nasdaq-100 gained 0.3%, suggesting the tech sector could extend its rebound when the stock market opens.
Upon closing of the transaction, the combined company will operate as eToro Group Ltd. and is expected to be listed on Nasdaq, the company said. A weak retail number may provide some short relief from inflation worries for Fed policymakers who begin their two-day meeting today. “Cramer’s comments came ahead of Tuesday’s strong open for the Nasdaq, which was solidly in the green early in the session. Money managers are looking to the Fed to address the rise in bond yields when the policy review concludes Wednesday.
This in turn has created an enormous money supply, and with constant bond purchases, the Fed’s balance sheet is massive.
The broader S&P 500 also rose and the NASDAQ, with a tech stock concentration, recovered from its Friday decline into a correction. “The US Government’s support is critical in helping accelerate the development of AZD7442,” AstraZeneca Chief Executive Pascal Soriot said.


Beijing wants Alibaba to sell media assets including the South China Morning Post, concerned by the tech giant s influence over public opinion. Third, US officials have formally linked its relations with China to Beijing’s economic coercion of Australia for the first time. Xi Jinping warns against tech excess in sign crackdown will widen. Australian goods have been targeted by Beijing as a protest over Canberra’s pro-US foreign policy.


Data disclosed on Monday indicated that the ECB boosted its pandemic bond buys to €14 billion in the week before the policy decision, from €11.9 billion the previous week. Already badly lagging on distribution, EU countries including Germany, Italy and France suspended use of AstraZeneca Plc s Covid-19 vaccine over fears of blood clotting. They look set to continue in the near term as the ECB pumps in cash at a quicker pace to help suppress bond yields. This will significantly impact an already hampered EU vaccine roll-out.
It s been a disastrous few days for the European Union vaccine rollout.