Close: London Session | Forex, Metals, Oil, Agriculture October 01, 2020



But sugar mills are stressed and saying that it will be difficult for them to pay the new FRP at the current MSP of ₹31 per kg. The one-year project will focus on capacity building and carry out promotion activities in local languages to increase the domestic consumption, said Coffee Board quality head K Basavaraj. The all-India average cost of production of sugar, after accounting for by-products, works out to ₹35-36 per kg. Shahaji Gaikwad, whole-time director of Daund Sugar, a mill based in Maharashtra, said that the industry is awaiting the decision of the Centre on MSP.
The Coffee Board launched a project funded by the International Coffee Organisation (ICO) to boost domestic consumption of the beverage. Currently, coffee is exported by producers in bulk as green and unroasted beans with most value addition taking place in consuming countries. ICO believes that coffee-producing countries can capture more benefit from promoting domestic consumption.


The Invesco DB Us Dollar Index Bearish Fund (UDN) moves higher when the value of the dollar index declines. The silver markets fell significantly during the trading session on Wednesday, which is a bit telling considering that the US dollar also fell. The US Dollar index fell for a third straight day to 93.7 as riskier currencies rebounded on improved sentiment. FOREX: The dollar fell to a nine-day low, as robust U.S. data and hopes for U.S. fiscal stimulus left investors confident enough to seek out riskier currencies.
Throughout September, the index made a series of higher lows and higher highs as the dollar recovered. Since central banks worldwide hold dollars and euros as the primary foreign exchange instruments, the dollar index has a 57.6% exposure to the European currency. The Bloomberg Dollar Spot Index slipped, yet came off an early London session low as a rally in equities lost steam. In other words, if you wanted to buy similar assets in the private market, you would be paying a much higher price for each dollar of NOI.
The UUP product operates inversely, as it moves higher when the dollar appreciates against the euro and other world reserve currencies. UUP is the bullish product that moves higher when the dollar index rallies.


This is a benefit of the physical silver trust (PSLV) which is not only backed by physical silver but allows investors to exchange the fund for delivered physical silver. Long-term silver investors may be better off with PSLV than SLV since it is far easier to redeem PSLV shares for physical silver which reduces counter-party risk. 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.
Sandstorm owns a 4.2% copper stream and a 52% silver stream on Chapada, an open-pit copper and gold mine in Brazil. The GoldSwitzerland Division was created to facilitate the buying and storage of physical gold and silver for private investors, companies, trusts and pension funds. Warren Buffett, a former gold critic, just bought 21 million shares of a gold mining company. If business and consumers run low on cash (given the economy and lack of stimulus) and reduce spending, prices will decline for all goods including gold and silver.
However, if precious metals, in general, are rising, the volatility can make silver a little bit more difficult to hang onto in comparison to gold. However, the company is apparently in talks with Royal Gold (RGLD) for a potential syndicated silver stream transaction with Hindustan Zinc (HNDZY). Tim Plaehn, our dividend expert, and Chuck Butler our Fed and currency expert both recommend owning gold and gold stocks as part of a well-diversified portfolio.


The long-term demand for oil tankers and rates depends largely on the demand for oil, and more specifically, oil transport. Longer term, the BP Energy Outlook 2020 says that global oil demand may have already peaked in 2019 and that oil consumption may never recover to the pre-pandemic levels. Speaking to S&P Global Platts, Hugo De Stoop, the head of crude oil tanker giant Euronav, said oil demand might never return to pre-pandemic levels. After global oil markets experienced one of the sharpest selloffs in history, the energy sector made a strong comeback in Q2 as oil prices rose to $40 per barrel.
As expected, oil prices bounced higher after reports of another drain on US commercial crude oil inventories.
U.S. Oil Production – Bloomberg In our view, the largest risk to oil prices is OPEC+ and its production cuts. On the bright side, the natural gas market has been affected by the pandemic much less than the oil market thanks to the somewhat inelastic demand for natural gas. With $50 oil, free cash flow would grow to around $1.3 billion, while with $60 oil, it would climb to around $1.9 billion.
Due to the oil price collapse in the spring, and the contango oil futures pricing structure, as much as 10% of the VLCC fleet was used as floating storage. The U.S. oil production has somewhat recovered, from the bottom of 9.7 million barrels per day in late August to 10.7 million barrels per day now.

United States

Following the continued rally in US markets on news of a stimulus package and support from the Fed, investors began looking towards international markets for greater returns. Additional fiscal stimulus could be just around the corner in the US after US Treasury Secretary Steve Mnuchin said that talks are progressing very well. House Democrats have tabled a $2.2 trillion stimulus package while Mnuchin has countered with a $1.5 trillion stimulus package.
At present we’re waiting to see if and when the US government gets around to pumping in some fresh stimulus to boost markets higher. less After the presidential debate on Tuesday between Donald Trump and Joe Biden, many observers see a win for former vice president Biden. It would take huge additional stimulus and clarity which comes following the US elections to boost stalling growth. Investment analyst working within one of the Big 4 Wall Street banks covering a wide range of stocks from consumer and retail to healthcare sectors.
Also overnight, President Trump signed stopgap spending legislation early Thursday to avert a government shutdown weeks before the presidential election. After the presidential debate on Tuesday between Donald Trump and Joe Biden, many observers see a win for former vice president Biden. Total layoffs for the week ending Sept. 26 showed gains, but drilling deeper and we see consumer spending and personal incomes taking a hit in the US economy.


WSJ explains how Beijing is pouring money into high-tech chips as it wants to become self-sufficient. Beijing has accepted a stronger yuan.


Here’s a more comprehensive explanation from a professor of EU law: Commission: letter of formal notice sent to UK re the internal market bill and the withdrawal agreement. This morning the European Union announced it was starting legal proceedings against the U.K. over Prime Minister Boris Johnson’s plan to breach the terms of the Brexit divorce deal. On the other side of the Atlantic, the United Kingdom could face legal backlash for violating its own divorce agreement with the European Union.
The mid-October EU summit could very well signal the start of a new phase of the UK-EU relations. Five Things Follow Us Get the newsletter More bad news for jobs, all stimulus hope still not lost, and the EU calls in the lawyers. However, pound options traders are in no rush to hedge the risk of a sharp decline in the U.K. currency due to Brexit risks, according to Bloomberg. However, the was just a formal procedure requiring the UK to simply respond within one month to the EU’s complaint.
This is because the promise of inflation overshooting raises inflation expectations and therefore lowers real interest rates,” stated Lagarde.
A crucial UK-EU summit is scheduled for mid-October, during which a trade deal is hoped to be finalized. His feature articles have been published on:,, Action forex, Forex TV, Istockanalyst, ForexFactory,,, etc.