Close: London Session | Forex, Metals, Oil, Agriculture May 13, 2021

This month’s 1st US winter wheat crop was 27 million bu larger than trade ideas with higher hard & soft red crop prospects. China’s strong purchases & Brazil’s dryness hurting its second crop (102 vs 109 mmt last month) helped boost corn’s exports by 100 million bu. However, reduced PNW & N Plains spring wheat potential because of current dryness kept the USDA’s overall wheat crop near expectations. Even with a 70 million bu higher feeding estimate, 2021/22 US wheat stocks were higher (WEAT).
These smaller demands resulted in larger 2022 US corn & wheat stocks than expected. Similar to corn, optimism about larger world wheat crops also surfaced with a lower US export forecast. May’s old-crop US soybean stocks were left unchanged at 120 million bu as expected. This will help in production of 62.47 mt of soybean oil.Palm oil output is forecast at 76.37 mt with India likely to import 8.7 mt of it. The USDA did utilize their Ag Forum yield levels & this spring’s planting intentions to project the general sizes of the 2021/22 US corn and soybean crops.
Corn’s US 20/21 feed & ethanol demands were left unchanged this month.

less Kathy Lien Follow The U.S. dollar soared on Wednesday on reports that consumer prices rose at their fastest pace since 2008. The U.S. dollar soared on Wednesday on reports that consumer prices rose at their fastest pace since 2008. Pixabay The higher-than-expected inflation rate in the United States triggered a sharp selloff in the equity markets and a rally in the US dollar. Both the headline and core CPI exceeded expectations, triggering a sharp selloff in equities and a US dollar rally.
The New Zealand and Australian dollars were hit the hardest by the sell-off in stocks, losing more than 1.5% of their value against the U.S. dollar. The Canadian dollar also ended the day lower but it was the most resilient, losing only 0.2% of its value versus the greenback. Gold slipped, weighed down by a steady dollar and rising Treasury yields. Gold dropped, weighed down by a steady U.S. dollar and rising U.S. Treasury yields. The US 10-year yield jumped, providing a nice concession at the quarterly refunding and lifted the dollar broadly.
Producer prices are due for release tomorrow, but after CPI, PPI should have little impact on the U.S. dollar.

At the time of writing, copper was at just over $5,000 per tonne, and few were crazy enough to even consider having some exposure to copper. China is the world’s biggest market for copper, coal and iron ore and consumers face much higher costs as some analysts expect a commodities “super-cycle”. Turquoise’s first-quarter copper production rose 29% to 45,449 tonnes and gold output increased by 461.5% to 145,656 ounces at Oyu Tolgoi, from last year. Gold, in particular, dropped over $20 on the news, which is surprising giving the fact that gold is a traditional hedge against inflation.
Energy, copper, broad commodities, industrial metals and agriculture – all these sectors have been locked in vicious bear markets over the last 5 years or so. Gold saw its biggest sell of in 2.5 months in the previous session following the jump in US inflation to its highest level since 2008. Today Gold is attempting a rebound of sorts, as treasury yields hold steady and geopolitical tensions in the Middle East support the precious metal.
He is well known for combining technical, fundamental and sentiment analysis into one accurate conclusion about the gold market.
This entails protecting portfolios against higher rates by tilting allocations toward assets like gold and cheap “value” companies. As well he is publishing his bi-weekly comprehensive for his numerous international readers focusing on Gold, Silver, Mining, commodities and cryptocurrencies.

Oil use in food consumption is expected to increase a tad to 21.98 mt (21.71 mt).Overall, domestic edible oil consumption is projected at 22.77 mt (22.44 mt). This will also see edible oil imports rising marginally to 14.74 mt next season (14.57 mt), the USDA said.Supply scenarioThe agency has projected total oilseeds production at 632.23 mt. Oil prices dropped more than 2% as India’s coronavirus crisis deepened and Colonial Pipeline resumed operations. Oil imports would be tempered by higher domestic production and surging prices.
Capital expenditure has played an underrated role in the past: A surge in oil and gas exploration in the 1970s may have eventually helped cool inflation. Its soya oil imports are expected to be steady at 3.7 mt. It was different in the 1970s, when an idiosyncratic squeeze in the supply of oil fueled an inflationary spiral that pushed all costs up. News that the US pipeline will re-open took the bid from crude oil. So much so that it’s now being touted as the new oil.
Oil lost about 1% as well, trading in the vicinity of $65.

U.S. stock futures fell, and world equities tumbled, tracking a selloff on Wall Street in the previous session, as a surprisingly large rise in U.S. consumer prices spooked investors. Higher inflation should weigh on a currency, but the market participants are now seeing the Fed tapering the asset purchases much sooner than before the inflation data. Treasury yields surged to 1.68% in the biggest jump in 2 months as high inflation prompted bets that the Fed could move on rates sooner.
Fed Vice Chairman Richard Clarida said he was “surprised” by the sharp rise in inflation, leaving investors wondering if today’s report raised eyebrows for other policy-makers. China will make up 50 per cent of this, the US agency said.India’s soyameal exports could top 1.7 mt, lower than this season but near a five-year average. A shocking rise in US inflation sent US treasury yields surging and has prompted expectations of a sooner move by the Fed. The US 10-year yield is steady, near 1.69%, while European yields are 2-5 bp higher, with benchmark yields at the high for the year.
ANALYSIS What U.S. inflation signs would cause Fed to change course? However, the Nasdaq was rebounding on Thursday, adding 1%.Zoom In IconArrows pointing outwardsThe tech sector has underperformed amid hotter inflation readings raising concerns about their lofty valuations. Yet, as Joshua Green writes, the Wyoming congresswoman s defiance has set her up as the new anti-Trump leader in a bitterly divided party.

Beijing is also expected to drive oilmeal demand, mainly through offtake of protein meals. In March, when the Philippines first protested the Chinese incursions, Beijing said they were “taking shelter from the wind.” Beijing’s foreign policy is counter-productive.

The European Union says Russia is trying to gradually absorb parts of eastern Ukraine, according to a document the bloc shared this week with member states. Slovakia is set to become the second EU member to use the Russian Sputnik V coronavirus vaccine after resolving a disagreement over negative reports by its drug regulator. It remains uncertain whether the World Trade Organization will approve the vaccine waiver, not least because the European Union has been cool to the idea.
It was a huge boost for the U.K. prime minister that underscored the strength of local support for Brexit.
His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. Goods exports to the EU rebounded 8.6% in March from a month earlier. Those months were picked as comparisons before and after Brexit. How do ECB chiefs invest their own cash? ECB laggards.