Close: London Session | Forex, Metals, Oil, Agriculture November 13, 2020



They had to close one of their main facilities a couple of years ago that produced high-fructose corn syrup, converting it into a logistics facility. Luring away | Cocoa supply-chain worries can drive more manufacturers to switch to Barry Callebaut, the largest, fully integrated premium cocoa-product maker. You’re seeing better prices for both – for all of corn, soybeans, and wheat than you’ve seen now in quite a few years. This piece of the enterprise produces and sells ammonia, with facilities servicing the Southern Plains and the Corn Belt.


The dollar index slipped as worries about the economic fallout from the pandemic tempered initial enthusiasm about a possible vaccine, while gold prices were up. An easier Fed policy will put downward pressure on the dollar, which helps international equities and especially emerging markets (they have U.S. dollar-denominated credit). In FX, the Bloomberg Dollar Spot Index extended losses in European hours as U.S. equity futures and most European stock markets reversed earlier losses.
On Monday, risk markets were on fire, with US equities pushing to record highs and the US Dollar broadly under pressure. The worrying picture is weighing on markets and the classic move would be a move toward the safe-haven US dollar. The dollar index slipped on worries about the economic fallout from the pandemic. (Source: Boulder Group) Or a portfolio of Dollar General stores along with other rent checks that provide better risk-adjusted returns? EU antitrust investigations of U.S. tech giants, and the associated billion dollar fines, have been a source of friction for years, leading to U.S. accusations of European anti-Americanism.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.15 per cent to 92.82. It is expected that the Indian currency may weigh down by dollar purchases to be made by the Reserve Bank of India,” Agarwal added.


After 190,000 toz gold and 2.15 million toz silver is delivered, the stream will be reduced to 3.25% gold and 50% silver. Karora paid only A$4 million ($2.9 million) for this property with indicated resources of 112,000 toz gold and inferred resources of 19,000 toz gold. (Source: Author’s own processing, using data from Gran Colombia Gold) Although gold production increased, the production costs increased too. Source: Own processing, using data of Karora Resources Although the gold sales declined slightly, Karora’s average realized gold price increased by 18.4% to $1,905/toz.
According to the deal, Wheaton will pay Caldas Gold $110 million for a 6.5% gold and 100% silver production stream. (Source: Author’s own processing, using data from Gran Colombia Gold) Fortunately, the average realized gold price increased as well, from $1,696/toz to $1,875/toz. In Q3 2020, Gran Colombia Gold produced 58,454 toz gold. Gold price reached a record of $1,914 and silver at $24.77 this quarter.PAAS is a good long-term investment.
On September 8, Karora announced the discovery of a new gold zone and a high-grade nickel zone at the Beta Hunt mine. The company is a good play both in gold and silver.


Palm oil demand The increase in home cooking has resulted in lower demand for palm oil, this year. Rosneft, the world’s second-largest oil producer by output behind Saudi Aramco, was forced to reduce oil production in line with the OPEC+ supply pact aimed at stabilising global markets. Investors could see nothing but higher oil prices and oil stocks were 15% of the S&P 500 Index. Elsewhere, the report showed that US crude oil imports averaged 5.5 million barrels per day last week.
Since then, every Tom, Dick and Harry poked holes in the ground and found oil in the U.S., sending oil prices way down. Today, Peak Oil Theory is out the window and the “Green New Deal” and ESG investing are convincing people that we won’t need the oil for a long time. Brent crude futures, the global oil benchmark, fell 0.60 per cent to $43.27 per barrel. The IEA added to this with a downbeat forecast, cutting its projections for Q4 global oil demand by 1.2 million barrels per day.
Crude oil is softer on the day, but the December WTI is still up about 9.5% this week after rising 3.8% last week.
Oh, sure, a surprise increase in crude oil supply did not help, but product draws, and low refinery runs send mixed signals about future demand.

United States

The former remains within touching distance of its year-high nonetheless, with investors reacting favorably to vaccine news and the US election result in the last week. Last night, the US notched a new milestone: 150k new cases for the first time, a new record. As a result, another term for Trump would be wildly bullish for the shares, and the multiple would probably re-rate much higher. I was concerned about the impact of the US-China trade war and management’s apparent lack of visibility into how much it could impact the company’s financial results.
The Dow, S&P, and Nasdaq all fell by 0.5% as the country recorded over 1 million new virus cases over the past week. Disney’s adjusted loss per share, excluding one-time items, of 20 cents, also beat Wall Street expectations of a more drastic 70 cents per share loss. They share a belief in multilateralism, WTO reform, climate action and possibly even some elements of industrial policy that could echo President Trump’s America First agenda.
As we go into the weekend, the prospect of Trump conceding the White House remains slim, as election officials have rejected any claims of manipulation with the vote count. In a separate report, Goldman’s economic team uses real-time data to determine the US economy is rolling over due to the resurgence of the virus pandemic. “The rapidly rising COVID-19 cases in the US overshadowed the optimism on a COVID vaccine that had supported sentiment earlier this week.


However, economists and political analysts expect few big changes due to widespread frustration with Beijing’s trade and human rights record and accusations of spying and technology theft. Some Chinese trade experts have suggested Beijing might try to renegotiate the “Phase 1” agreement signed in January as a first step toward ending the trade war. Political analysts expect Biden to try to resume cooperation with Beijing on climate change, North Korea, Iran and the coronavirus.


All this political infighting comes ahead of the latest Brexit deadline this Sunday, with little progress seen in the EU/UK trade talks. EUR/GBP is starting to show signs of Brexit-stress this week after having moved lower over the last two months in anticipation of an EU/UK trade deal. While volatility in the pair remains low, using the ATR indicator, this is likely to increase next week as we near the latest Brexit deadline. Next week s deadline in the negotiations with the EU may have influenced the timing of the row, but it did not define it.Some things have not changed.
They will continue into next week as negotiators will not have enough time to strike a Brexit accord given ongoing differences. Trade talks between the EU and the UK remain deadlocked and are unlikely to wrap up this week. The EU outlined its charges against Amazon and opened another investigation into the retailer this week, echoing some complaints made this year by U.S. authorities.
The deadline for talks is currently set at 19 November, when the next EU summit is scheduled to take place. Another week of Brexit talks ends today with little progress. On the other side, the pound led gains amid hopes for a Brexit trade deal while the yen came off highs as haven bids waned.