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



The projection has been made despite the USDA pegging the area under cotton lower at 129 lakh hectares compared with 130 lakh hectares. The rest of the crop fetched good prices for the farmers,” the SIMA official said.This season, cotton prices ruled at MSP level from the beginning before gaining further. Last season, Telangana topped Gujarat to become the State where cotton acreage was the second largest at 60 lakh hectares (lh). While the cotton trade said it trusted the US outlook, textile industry sources said it was too early to make any forecast or prediction on the crop.
This season, at least 30-40 per cent of the crop produced in the year was procured at MSP by the Cotton Corporation of India. India’s cotton yield had touched a record 512 kg per hectare during 2016-17 before dropping to a low of 449 kg during 2018-19. For the current season, the Centre paid ₹5,515 a quintal for raw cotton. Australia produces over 2,500 kg per hectare of cotton,” the source said.
It is likely to be raised for the next season.“Cotton is one of the best crops in terms of returns. Analysts say high corn prices are lifting makers of fertilizer and farm equipment while helping consumer products and food companies justify their own price increases.


Between October and December 2020, the dollar’s Nikkei EER against the yen was 94 yen, relative to 110 yen between October and December 2019, before the coronavirus epidemic spread. The world economy, which has been struck hard by the coronavirus pandemic, could be shaken if the dollar weakens quickly. In absence of significant economic data from the US, gold prices will continue to remain at the mercy of the dollar and yields. less As Bitcoin (BITCOMP) continues to struggle in its attempt to surpass the 60,000 dollar mark, altcoins are taking over the crypto market.
Furthermore, considering the United States’ future fiscal investment, the dollar’s Nikkei EER against the yen would eventually fall. The data showed that the US economy added a lot fewer jobs than expected, and so investors sold the dollar aggressively. Given that recipients likely spent the bulk of their stimulus, and each dollar spent has a smaller impact on growth, the rate of change is slowing.
Sterling and the dollar bloc are leading the majors, while the yen is softer. Exports grew 32.3% in dollar terms in April from a year earlier, the customs administration said Friday, exceeding the 24.1% median estimate in a Bloomberg survey of economists. Lower interest rates weigh on the dollar and reduce the opportunity cost of owning gold.


Gold prices for the latest contract on MCX are trading up by 0.4% at Rs 47,930 per 10 grams. China’s investment in infrastructure to drive its own economic recovery has pushed prices of iron ore, Australia’s top export, to a record high above $200 a metric ton. Gold prices are trading up by 0.1% at Rs 47,800 per 10 grams. The supply disruptions caused by Covid-19 and heavy rainfall, for example, have affected iron ore production in Brazil, the second largest iron ore producer.
If futures prices are moving higher because investors expect Aussie iron ore to become scarce on the mainland for political reasons, they will probably be disappointed. Copper prices, for example, have also notched record highs as the metal is seen as a beneficiary of the transition to renewables and electric vehicles. Meanwhile, silver prices are trading up by 0.9% at Rs 72,037 per kg. Iron ore futures on China’s Dalian exchange rose 10%—the daily trading limit—Monday to a record high.
The supply disruption is key, but iron ore prices soared 10% on strong Chinese demand. in Computer Science from Ben Gurion University less Gold (GLD) has turned bullish last week and I expect continuation towards higher levels in the week ahead.


Last week’s cyberattack on the largest US gasoline pipeline continues to lift oil and gasoline prices (OIL). Oil prices rose, after U.S. fuel pipeline operator Colonial Pipeline had to shut fuel pipelines due to a cyberattack. According to the ANRPC report, natural rubber prices are expected to receive the support of the crude oil market. The progress in the vaccination drive and the resultant renewed economic recovery momentum are expected to support crude oil prices, at least in the short term.
Crude oil imports into the Mediterranean (MED) fell to 31.85 mmbbl, down from 39.81 mmbbl a week earlier. Around 4.35 mmbbl of oil were showing the MED and 1.82 mmbbl NWE as their destinations last week. Around 26.91 mmbbl of crude was loaded from West Africa last week, up from 23.77 mmbbl a week earlier. On the commodities front, the WTI crude oil seems stuck at the $65 level, finding bids on every move lower. The combined company will operate across approximately 425,000 net acres, with a production base of 117 thousand barrels of oil equivalent per day.
Crude oil finds bids on every dip, and the $60 level remains pivotal.

United States

The Fed has kept interest rates near zero for the past year and signaled rates won’t change for at least two more years. Then, in 2016, the Fed raised rates very slightly in an effort to test the global market’s reaction to tightening financial policy ahead of a big US election event. In 2013~2015, the C2SC Index rose above the Confluence level (the RED line) multiple times, yet the Fed kept rates extremely low – ignoring inflationary risks at that time.
Therefore, the London session will likely see the market participants digesting Friday’s report, and by the time the US markets open, the focus shifts to the equity indices. With the recent two trial balloons (Kaplan and Yellen), the Fed might be exploring market reactions if it had moved to counter inflation at least to some degree. In August 2018, the Fed attempted another 0.25% raise that broke the market trend and prompted a broad market decline into December 2018. Notably, the outsized growth of the market reflects repetitive interventions into the financial markets by the Fed.
Boston Fed President Eric Rosengren said inflation increases will be temporary, comparing bottlenecks to the toilet paper shortages a year ago when the lockdowns first went into effect. By late 2017, the C2SC index had risen past the RED Confluence level again and the US Fed continued to raise rates well into early Summer 2018. His market analysis can also be read in most major financial publications, including the Wall Street Journal.


That s included advancing the Blue Sky action plan, which sets air quality targets for each district in Beijing, and implementing measures to cut pollution. Last week, Beijing battled its fourth major sandstorm since March as strong winds blew in dust from desert areas to the north. When Beijing hosted the 2008 Summer Olympic Games, China was determined to welcome visitors from around the world with blue skies and fresh air. The share of heavily polluted days experienced nationwide in 2020 was half that of 2015, falling in key regions including Beijing.
Beijing is also behind on its air quality targets. President Xi Jinping has made cleaning up the environment a priority since he came to power in 2013.


The European Central Bank (ECB) wants to reduce its carbon print to zero by investing part of its profits into green projects. UK Prime Minister Boris Johnson is set to deliver a statement announcing new measures related to Britain’s reopening. Macron pushes ahead on environmental referendum.