Close: London Session | Forex, Metals, Oil, Agriculture May 14, 2021



Less sweet | The global sugar supply crunch is about to get worse amid a food-versus-fuel debate playing out in top exporter Brazil. At the close, soybean prices had plunged 58¢, corn dropped its daily limit of 40¢.


In international markets, gold prices edged lower as US Treasury yields rose to an eight-week high and the dollar firmed after a bigger-than-expected rise. BEFORE THE BELL Futures for Canada’s main stock index rose as gold prices gained on a weaker U.S. dollar after Federal Reserve officials downplayed inflation concerns. The upswing in markets and consequent drop in the dollar seem like a much-needed correction rather than a change of course. Only a drop in expenditure could further pressure the dollar, and that seems highly unlikely.
On Thursday, the bleeding stopped, with stocks rebounding out from the weekly low and the US Dollar coming back under pressure. The dollar edged lower as risk appetite recovered across markets. Selling in the dollar got underway right after Asian trading opened this morning. The New Zealand dollar, the day’s best performer soared despite weaker manufacturing activity. As go US interest rates, so goes the dollar.
Recent data could overall be seen as confirming that GDP growth was broadly in line with the March 2021 ECB staff macroeconomic projections for the euro area.


Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic. Gold prices for the latest contract on MCX are trading up by 0.2% at Rs 47,545 per 10 grams. Gold prices are trading up by 0.3% at Rs 47,588 per 10 grams. That trend seems to be starting to reverse, with iron ore prices in Singapore tumbling below $200 a ton overnight, after trading as high as $233 earlier this week.
As well he is publishing his bi-weekly comprehensive for his numerous international readers focusing on Gold, Silver, Mining, commodities and cryptocurrencies. He is well known for combining technical, fundamental and sentiment analysis into one accurate conclusion about the gold market. Gold is extending its recovery after dipping below $1810 yesterday and is near $1833 near midday in Europe. He writes a bi-weekly in-depth analysis for one of Germany´s largest gold and silver retailer the “pro aurum group”.
We also believe in a high probability for Silver prices to reach near triple-digit price levels. Gold prices were higher.


Oil prices rose, though gains were capped by the coronavirus situation in major oil consumer India and the restart of a fuel pipeline in the United States. Crude oil prices are stabilizing in yesterday’s trough after June WTI slid 4.3% yesterday. Goldman Rebrands Fracking Research as Green Shift Accelerates It s taking the oil out of oil services. That grain market crash hurt oil whose ties to ethanol and biofuels are intertwined. The June 92 RON Gasoline contracts declined $2.94 at $71.70/bbl; 3Q ’21 was down $2.48 at $71.26/bbl and the 2H Cal ’21 contract declined $2.28 at $70.61/bbl.
Spilling over | The meteoric rise in palm-oil prices is poised to inflate costs for everyone from restaurants to confectionery and cosmetic manufacturers, and could potentially change consumption patterns. Image Source: Pexels And our demand for oil will not go away because of the pipeline hack. Panic buying of gasoline resulted in a spike in pump prices in the US.
July ICE Brent futures were $1.60 lower at $67.06/bbl, while the rest of the 48-month forward contracts traded between -$1.63 and -$1.10.
Front month June WTI futures were down $1.51 at $63.89/bbl, with the other 49-month forward contracts traded between -$1.51 and -$0.97.

United States

It seems the recovery in the US jobs market has eased at least some worry associated with the rise in inflation. US stock futures are trading higher today, indicating a positive opening for Wall Street. For example, about 29% of banks eased their underwriting standards for credit cards in the first quarter, and only 2% tightened them, according to the Fed. Benchmark indices fluctuated between gains and losses as rising inflation in the US and the likelihood of lower earnings in the June quarter spooked investors.
Fed Vice Chairman Richard Clarida said rising inflation is a sign of pent-up demand in the economy. Well, there is no need to argue that we will see a few strong quarters of GDP growth in the US and other countries. The Fed isn‘t serious about fighting inflation, otherwise it wouldn‘t be rolling out the speaking procession on an almost daily basis. Before the week draws to a close, the US reports April retail sales and industrial production figures.
Cloud services security provider Qualys (Nasdaq: QLYS) recently announced its first-quarter results that surpassed market expectations. The evidence isn‘t strong thus far, but there is a lot of time left till the Jun Fed meeting.


On inflation expectations, the ECB saw the recent increase in market-implied inflation expectations as largely reflecting an increase in inflation risk premia, while genuine inflation expectations had risen less. less The ECB did not have a serious debate on monetary policy at the April meeting, as the real decisions will be taken only in June. As for the key news, we note the ECB’s report on its monetary policy meeting. Comments by ECB officials since the last meeting have remained rather subdued.
Source: Shutterstock At the press conference after the ECB’s April meeting, President Christine Lagarde said that there had not been any discussion on tapering. In other words, the ECB is already preparing the ground for the time after net PEPP purchases end. Northern Ireland s Democratic Unionist Party selects a new leader today, setting the stage for a heightened campaign against the Brexit deal that has inflamed tensions in the region. Prime Minister Boris Johnson has come short of suggesting a reversal in policy but he has expressed concerns about the .
By now, I have built up excellent skills and experience in analyzing macroeconomic and political developments in Europe, the Eurozone and Germany, including ECB watching. Instead, the ECB’s discussion seems to have been focused on the macro assessment.