Close: London Session | Forex, Metals, Oil, Agriculture November 06, 2020



Prices for vegetable oils, sugar and dairy prices also were higher.Adverse weather was also contributing to abnormal trade flows. District Collector of Wardha, Vivek Bhimanwar told BusinessLine over 50 per cent of the cotton crop has been damaged in the district. The cotton crop in Maharashtra is facing a double whammy of pink bollworm (PBW) attack and boll rot because of excess monsoon rains. But Chicago-traded soybean futures were headed for their strongest week in five.
India, which typically favors South American supplies, purchased 33,000 metric tons of U.S. soybean oil, U.S. Department of Agriculture data showed Thursday. Analysts surveyed by Bloomberg expect the agency to trim American corn and soybean yields.


The dollar sank to its lowest level in over two months against a basket of currencies, while gold was in the green. The U.S. dollar sank to its lowest level in over two months against a basket of currencies, while gold was in the green. That should drive the US dollar lower, and then by extension drive gold higher. In America’s case, more monetary stimulus means additional funds for stocks, adding to the risk-on mood and weighing on the dollar. However, in global markets, gold prices fell weighed down by a stronger US dollar.
The US dollar has weakened further this week and touched a new two-month low as the safe-haven appeal of the greenback gave way to risk-on market sentiment. Long before the covid-19 lockdowns, economic and financial developments threatened to undermine both the US economy and the dollar. This could threaten to send the US Dollar snapping back higher in turn. Markets lean toward a decision rather than a contested election, and the safe-haven dollar is down.
This prompted an initial bounce in the US Dollar Index, but the move was short-lived owing to more dominant selling pressure.


While the gold equivalent production was lower year over year, the price of gold jumped from $1,472 to . Royal Gold reported a low production volume of (Gold Equivalent Troy Ounces), a decrease of from the same quarter a year ago, and up sequentially. If gold continues to be bearish and goes below $1,800 per ounce, we may break down and go as low as Watch gold like a hawk. Here’s a look at the monthly percentage growth of the Fed’s balance sheet versus the gold price (gold in orange, Fed balance sheet in blue).
Royal Gold’s recent earnings results were in-line with expectations, despite a small gold equivalent production. 6, 2020 9:16 AM ET|| About: Argonaut Gold Inc. (ARNGF)by: SA TranscriptsThe following slide deck was published by Argonaut Gold Inc. in conjunction with their 2020 Q3 earnings call. 6, 2020 9:21 AM ET|| About: Galiano Gold Inc. (GAU)by: SA TranscriptsThe following slide deck was published by Galiano Gold Inc. in conjunction with their 2020 Q3 earnings call.
Be ready for gold and gold stocks to follow, at least initially, as investors sell to meet margin calls. Royal Gold reported total revenues of in the fiscal first quarter of 2021, up from the $118.774 million reported in the same quarter last year. Royal Gold divested its ownership interest in the Peak Gold project this month.


EOG’s total output fell 14% to 716,000 barrels of oil equivalent per day (boepd), while average crude oil and condensate prices dropped 29% in the reported quarter. Trading in an oil group is also not doing it any favors, as oil has become very disliked by markets. Oil prices dropped as new lockdowns in Europe sparked concerns about the outlook for demand. The company said average daily production fell to 297,001 barrels of oil equivalent (boe) in the third quarter, from 332,315 boe.
Yet the crude oil market seemed to struggle even as stocks and metals broke out higher on economic optimism and asset price appreciation.
The main reason is still the coronavirus plague that raises a concern for more oil and gas demand destruction. A situation that will have grave consequences on the market when oil and gas demand eventually return. Russia was a standout, with its first net sales in 13 years as oil prices remain low. We base this on continuing steady EBITDA alongside potential for significant upside in revenues when the oil price moves up. Navigating the oil price crash was a tough task but NuStar appears to be managing it.

United States

Most of the global markets also traded in the green amid expectations of the Democratic Party winning US election, following 2% rally in the US markets overnight. That said until President Trump concedes, there is potential for another flareup in market volatility and risk aversion if he tries to further contest election results. The US budget deficit soared to $3.3 trillion in the last fiscal year to end-September and looks like being even greater in this new fiscal year.
Trump would need to win at least three states of these four states to win, The risk comes from Trump’s unsubstantiated claims of fraud, rejected by several Republican politicians. The Fed expanded its purchase program beyond Treasury bonds to also include municipal bonds, corporate bonds of both investment and speculative-grade, as well as ETFs for the first time. Moving back to the US, Pennsylvania coincidentally saw a record number of new cases yesterday as officials scrambled to count votes and reporters descended on the state in droves.
In a rambling speech last night, Trump said his allegations of election fraud were “going to end up at the highest court in the land.” rocketed 9.9% ahead of the open after the online real estate company posted earnings that beat Wall Street’s expectations for the latest quarter. Taco Bell served 30 million more cars than it did a year ago in the third quarter, Yum Brands Chief Executive David Gibbs told Wall Street analysts last month.
Last month Olbermann said Trump should be executed over the handling of the coronavirus: Keith Olbermann calls for Trump to get the death penalty, one for every COVID death.


Elsewhere, the European Union cut its growth forecast for 2021 as the second round of pandemic restrictions in the region risk putting a halt to the recovery. 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. EU green bonds set to preempt rules that will govern them. Perhaps if the UK has its own constitutional crisis over Scotland, and before that Brexit, things will look different.
The EU, Japan, South Korea and others have now embraced 2050 targets for zeroing out emissions. U.K. Prime Minister Boris Johnson on Saturday announced a one-month lockdown beginning Nov. 5 through Dec. 2. US elections, BREXIT and COVID-19. Main focus: Europe, Eurozone, Germany and ECB.