Close: London Session | Forex, Metals, Oil, Agriculture November 11, 2020



In wheat (WEAT), the USDA upped food demand by 5 mil bu which slipped US stocks to 877 million bu this month. In soybeans, the US yield was cut by 1.2 bu to 50.7 bu. Adding to today’s bullish was the USDA upping corn’s exports by 325 million bu.


The dollar is mostly firmer, though the Antipodeans are firm, and the New Zealand dollar traded above $0.6900 for the first time since March 2019. The US dollar continues to trade within Monday’s range against the Canadian dollar (~CAD1.2930-1.3070). Even the US dollar’s exchange value against most currencies initially fell, as share prices rose, only to turn around and bump upward yesterday and today. The better tone in equities and firmer oil prices would usually be supportive of the Canadian dollar, but technically it looks likely to continue to consolidate.
Over the first four years of Obama-Biden, the dollar index trended lower, and commodity prices rose to multi-year or all-time highs. This should drive the dollar lower (even though its positioning is already short) and US real rates lower under downward pressure. For those unfamiliar, this is a leader in the emerging Business Spend Management market that helps organizations maximize the value of every dollar spent through an intuitive cloud-based platform.
A stronger dollar weighed on gold prices. A stronger U.S. dollar weighed on gold prices. When the dollar falls, the mark-to-market of those hedges reduces net investment income and thus, coverage ratios.


The positioning in the gold market has become heavily long during the COVID-19 crisis, even longer than the previous gold price peak in 2011. As a result, we expect investment demand for gold to remain strong over the short run, pushing gold prices higher despite the unsupportive price seasonality in November. The strong co-movement between gold prices and GLDM tracks very well the fluctuations of gold prices. The SPDR Gold MiniShares Trust (GLDM) has come under heavy pressure of late, defying our bullish near-term view on gold prices.
Although the positioning in the gold market is heavily long, we think it has room to become even longer in the weeks ahead. Our dry powder analysis suggests that gold prices may move higher in the weeks ahead and months ahead. One way to determine how longer the positioning in the gold market can become is to analyze the dry powder level among money managers (i.e. This suggests that there is sufficient dry powder among this trader category to push gold prices higher in the near term.
In global markets, gold prices inched higher on hopes of more stimulus measures as surging coronavirus cases in many parts of the world clouded the economic outlook. Later on in 2008, he began researching areas of the gold and silver market that, curiously, the majority of the precious metal analyst community have left unexplored.


MARKETS TODAY OIL: Oil prices climbed as hopes of an effective COVID-19 vaccine continued to bolster sentiment and an industry report showed U.S. crude inventories fell more than expected. Already the oil market is making the adjustment from a world in terminal lockdown to a world that might actually see a balanced or undersupplied global oil market. Altus Midstream – Altus Midstream Several years ago, oil company Apache Corporation (APA) made a substantial oil discovery in shale assets.
There is a significant discount from Brent to get the oil to market reflects not only oil quality but also the infrastructure needed to lower transportation costs more. The API reported that crude oil supply fell by 5.137 million barrels, which was two million barrels more than my projection and much more than the average guesses. less WTI crude oil prices climbed for a third day to US$ 42.00, riding the tailwinds of election results, encouraging vaccine news, and a large-than-expected draw in US inventories.
U.S. crude oil production has recovered from the two-and-a-half-year lows touched in May mainly because shale producers have brought wells back online in response to rising prices.
Average third quarter realizations for crude oil improved significantly, as market prices increased following the second quarter’s challenging environment. Brent oil touched a more than two-month high, supported by an industry report that showed U.S. crude inventories fell more than expected. Naphtha refinery margins in Asia declined on the back of increase in arbitrage flows from the east and further weakened with increase in crude oil prices.

United States

While the US equity market and futures are open, the cash Treasury market is closed for Veterans’ Day. BEFORE THE BELL Wall Street futures were higher, mirroring global share markets, as optimism around a COVID-19 vaccine offset concerns about the economic damage from surging infections. The US cash bond market is closed today, while yields are firmer in Europe and the Asia-Pacific. The US cash bond market is closed today, while yields are firmer in Europe and the Asia Pacific.
: Beyond Meat investors panicked over fears of potential competition from McDonald’s in the plant-based meat substitutes market, CNBC reports based on Wall Street analysts’ comments. (Video length 00:00:47) The US bond market is closed for Veterans Day and the economic calendar is thin as a consequence. Funko’s impact from the pandemic bottomed out in Q2, and though revenue is expected to be negative through Q4, Wall Street expects a return to growth next year.
A divided government means little scope for major legislative changes, although trade and regulatory policy stances will likely differ relative to the Trump administration. Accommodative Fed policy and low interest rates make equities appear attractive on a relative basis vs. fixed income alternatives, pushing investors out on the risk curve. Even after global trade collapsed, Vietnamese exports to the US were up 11% year over year in the third quarter.


Although Europe and US regulators have begun pushing back against the large US tech companies, Beijing’s actions are catching many investors and observers by surprise. Powers handed down by China s parliament in recent months, including a national security law carrying sentences of up to life, dramatically raise the cost of criticizing Beijing. Markets rise The rotation in global stock portfolios continues this morning, with tech stocks in Asia the standout loser as Beijing’s crackdown on the sector continues.
Recent events indicate Beijing will take on its technology giants as well. As of 12:30 am Beijing time the company’s gross merchandise value was $56.42 billion. Beijing had already moved to disqualify Wong and other Democratic candidates from running for seats in the LegCo.


However, EU and UK negotiators may still seal a deal sometime next week. Under the EU deal, the 27 EU countries could buy 200 million doses, and have an option to purchase another 100 million. Share French President Emmanuel Macron and German Chancellor Angela Merkel have announced new lockdown measures as Europe sees mounting cases and deaths related to the coronavirus. Brexit talks are set to be extended beyond this weekend s informal deadline and continue in Brussels next week.
The purchases could take place only after the vaccine is authorized as effective and safe by the EU drug regulator. Prime Minister Boris Johnson’s Internal Markets Bill – which may undermine arrangements on the island of Ireland – has still not passed. The Airbus-Boeing (OTCPK:EADSF) (NYSE:BA) dispute played out earlier this week, and the EU rejected Germany’s proposal to delay the WTO-approved tariffs. less Another artificial Brexit deadline missed – is it that shocking?
Source: ACEA, SFA The EU diesel market share tumbled from 46% in 2016 to just 28% in Q3 2020. Christine Lagarde, President of the European Central Bank, will speak later in the day.