Close: London Session | Forex, Metals, Oil, Agriculture November 26, 2020


Agriculture What happens when rapidly rising demand meets subdued supply can be seen below as the graph displays both corn and soybean futures. Soybean meal, a soybean product, and corn are feed staples. Soybean meal is fed to animals and for human consumption, while soybean oil also has many uses. Source: CQG Corn prices are rising and were trading at above $4.20 per bushel this week. Especially China is giving the global agricultural industry a boost thanks to its need for corn and soybeans.
Wheat has already hit a six-year high, with the price of the grain above the $6 per bushel level. China has been purchasing soybeans hand over fist over the past months, contributing to the oilseed futures’ bullish price action. As the Chinese rebuild their pig population, the demand for soybean meal is rising. Above there, corn traded to a high of $5.19 per bushel in 2014. Soybeans are used in many foods as well as various industrial purposes.


A weak dollar can help stocks with big overseas operations since it makes earnings in foreign currencies worth more in dollar terms. The company’s Family Dollar brand has done even better, rising by 6.4%, and its flagship Dollar Tree brand has risen by 4%. Just as in the case with the latest quarter, the increase in store count and rising same-store sales has helped Dollar Tree grow its bottom line nicely. The dollar index and gold prices rose as investors focused on the surging coronavirus cases and their economic toll.
Enterprise same-store sales are up an impressive 6.5%, while its Dollar Tree brand has seen sales rise a more modest 2.1%. A definitive close below $92 could re-test the $87 level – where the dollar topped in 2009 – and bring further gas for the risk rally. The consensus view of a falling dollar is based on a big assumption: Covid-19 will be more or less conquered in the months ahead. Even this figure is likely to be greater next year if the renovations associated with Family Dollar stores are any indication.
The dollar has retracted somewhat to the euro, so adjusting for that, net sales were up 6.8%. This has helped to push Family Dollar same-store sales up 11.2% compared to 2019.


In 2002 when gold was $300 per ounce, MAM recommended to its investors to put 50% of their investment assets into physical gold stored outside the banking system. This time as you can see gold has disconnected from the party (as, obviously, have gold stocks), which continues on its merry way. >> Fabrice Drouin Ristori on Twitter is an independent investment analyst and studies the gold and silver market and their future role in the international monetary system.
The GoldSwitzerland Division was created to facilitate the buying and storage of physical gold and silver for private investors, companies, trusts and pension funds. less (Length 00:23:54) Many analysts and traders are expecting record-setting delivery numbers for gold and silver in the COMEX December delivery month. He follows regularly since 1970 the gold, silver and foreign exchange markets. Zimbabwe’s illicit gold trade is so extensive, the report stated that “some dealers estimate that illegal exports top official deliveries,” to the country’s formal refinery.
He follows and analyzes the gold and silver markets since 2008. According to official figures, gold production in the first eight months of 2020 rose 10%, driven especially by output from small-scale miners. Fabrice shares his thoughts on the economy, stock markets, geopolitics, gold and silver.


Investors can start by selling the SPDR Oil & Gas E&P ETF (XOP) which is loaded with both oil and gas frackers. There are so many factors against oil price rising that the window for more expensive oil and rising U.S. shale stocks continuing to rise is narrow. The hyperactive leverage-driven rally in oil stocks in November is a gift in my opinion to unload oil stocks. Last year, I discussed Why Oil Stocks Are Priced For Armageddon and recently why Most Oil Shale Is Doomed.
I don’t know how high the bounce is, but it will die again soon enough because oil’s problems are not cyclical, oil’s decline path is secular.
I will be laying out what I believe the future of the oil industry is in an update of my Peak Oil Plateau working paper in December. The EIA reported a 0.8 million barrel decrease in headline oil stocks, this was well below the 0.1 million barrel increase forecast. Vaccine-phoria has visited the energy sector and propelled oil prices upward while pulling less contango in the futures curve, awakening this commodity market from its post-August doldrums. But with improvement in the brent prices, we’ll know turn our attention to strengthening the oil hedging book to match the increases secured on gas.
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United States

Two professors have just lent academic heft to a suspicion running rampant on Wall Street all year: The options market is whipsawing share prices like never before. Market participants remain focused on the US election outcome, Brexit talks and equity market trends. During 2020, shares of the US companies that pay no dividends returned 30.3%, while those with high dividends have fallen by at least 16% (Display, left). Nevertheless, the benchmark KBW Nasdaq Bank Index is still down 22% for the year after the coronavirus pandemic and near-zero interest rate policy weighed on banks.
Meanwhile, US markets faced an indifferent day of the performance on Wednesday as many set off for the biggest holiday in the US calendar, Thanksgiving. Even with Trump upending decades of American trade policy in four years – the lasting effects are starting to be realized. The Trump administration’s tariffs and tensions could disappear early in 2021, creating more trade between the US and China.
While Trump may have been correct in pinpointing many of America’s economic ills, his prescriptions for a cure, like those before him, leave much to be desired. Paid Post There’s a reason over 2.5 million people start their day with Morning Brew the daily email that delivers the latest news from Wall Street to Silicon Valley. The company owns and operates over 2,700 restaurants, with the vast majority being in the US, but Chipotle has expanded internationally as well to select markets.


12:00 EU: M3 money supply and private sector lending (October) 15:30 EU: monetary policy meeting accounts Major currencies have been trading in positive territory during Asian trading. The ECB monetary policy account set the thresholds for further easing and those thresholds will be met. Air Canada has offered concessions related to its proposed acquisition of Canadian tour operator Transat AT to address EU antitrust concerns, a European Commission filing showed.
The pandemic has completely erased the improvement in sentiment that has occurred over the past years on the back of higher GDP growth stimulated by Macron’s reform agenda. The ECB may thus be reluctant to increase the pace of its asset purchases, unless financing conditions start to tighten. Well, Stefan, we can tell you: the ECB will almost certainly expand its emergency pandemic QE by hundreds of billions in December, as today’s ECB minutes hinted. Cold comfort | U.K. food companies are growing tired of stockpiling extra produce in cold storage just weeks before the country leaves the EU s single market.
Market participants brushed aside negativity surrounding the deadlocked Brexit negotiations, as well as the extension of Germany’s lockdown.
Recent information supports the case for more easing at the ECB December meeting. The Commission, which oversees competition policy in the 27-nation European Union, said the commitments had been submitted on Nov. 25.