Close: London Session | Forex, Metals, Oil, Agriculture October 02, 2020



Despite Covid pangs, sugar exports from India had touched a new high of 5.5 million tonne (mt) till August, against 3.8 mt logged in the same period last year. The previous highest export of 4.9 mt was logged in sugar season (October to September) 2008. Sugar volumes are likely to have been back to near-normal in the second-half of this fiscal, which would limit the decline to about 3 per cent in FY21. Being an essential commodity, sugar exports continued despite the strict lockdown imposed in March.
It is a similar story for cotton as well, where the MSP is ₹5,825 for long staple and ₹5,515 for medium staple, but cost of production is higher. Dattagiri, a farmer from Pedda Oduguru near Gutti, pegged the cost of production for cotton at ₹30,000 an acre; yields are around 6-8 quintals an acre. MSPs announced for chillies, cotton, turmeric and paddy by the Andhra Pradesh State government are too low, say farmer activist groups. Although the impact of the pandemic cannot be helped, the bigger problem is that Bayer’s dominant position in the $4 billion soybean market is under threat.


Using dollar cost averaging, where you buy a fixed dollar amount of shares at regular intervals, would likely improve those values. Inflation puts additional pressure on the US dollar and depreciation of the US dollar is a likely outcome. Risk assets, as expected, took a tumble when the news emerged, and money flowed to havens like the dollar, Japanese yen and Treasuries. Sterling and yen are notable exceptions, while the Australian dollar, is snapping a four-day advance to lead the decliners.
Sterling and yen are notable exceptions, while the Australian dollar is snapping a four-day advance to lead the decliners. The dollar edged up and gold ticked higher with investors scurrying for safe-haven assets. The U.S. dollar edged up and gold ticked higher with investors scurrying for safe-haven assets. This is mainly due to US dollar behavior during times of significant risk aversion, like we’ve had this year and 2008, for example. The dollar fell to lows for the week against the Japanese yen, briefly dipping below JPY105 in the initial reaction to new of Trump’s contraction of the virus.
FOREX: The dollar and yen rose after U.S. President Donald Trump’s positive test for COVID-19 spooked investors, just a month out from November’s presidential election.


Hubert is an independent gold and silver analyst who specializes in fractal analysis and the fundamentals of gold and silver . … more Hubert is an independent gold and silver analyst who specializes in fractal analysis and the fundamentals of gold and silver . 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. So, it may be about time the Japanese yen joined other haven assets like gold and silver by breaking higher, causing the USD/JPY and other yen pairs to drop.
The notion that silver is just an “Industrial Metal” was utterly destroyed yesterday as both the copper and oil prices were crushed as silver surged higher. Gold (GLD) Surprisingly there is no flight to safety in gold. Hubert’s work is regularly published in the premier gold and silver publications. For the price of gold, there has been greater responsiveness to the macroeconomic landscape change since President Richard Nixon took steps to end the Bretton-Woods system starting in 1971.
The same could be said about Republican candidates as gold prices weakened during the Regan era, but increased during the two terms under George W. Bush. S&P 500 futures pointed to a lower open ahead of the jobs report, the 10-year Treasury yield was at 0.663% and gold rose while oil fell.


With the U.S. oil price falling $2 in one day, that just wiped out $21 million in oil revenues to the oil companies. “A reduction in natural gas prices is credit negative for upstream companies such as ONGC and Oil India, as it will lower their revenue from gas sales. Energy firms dominated the laggards list despite flat oil prices and rising natural gas prices as the firms lagged market expectations. For consumers of piped natural gas and compressed natural gas, the price cut is a boon.
Oil prices fell, as negotiators failed to agree on a U.S. stimulus package just as rising global oil output threatens to overwhelm a weak price recovery.
ONEOK Inc provides natural gas gathering, processing, storage, and transportation as well as natural gas liquids transportation and fractionation. At a maintenance production level and $40 WTI oil (with no oil differential), Penn Virginia would deliver approximately $299 million in revenues after hedges for 2021. The purchase would boost Chevron’s U.S. shale oil holdings and add nearly 1 billion cubic feet of natural gas reserves close to growing markets.
This is around 5% less than its average Q2 2020 oil production, reflecting its modest development activity since the crash in oil prices. Therefore, natural gas growth was a by-product of the oil production growth.

United States

“Stock futures were sharply lower Friday morning as Wall Street digested the news that Trump and the first lady, Melania Trump, tested positive for the coronavirus. Early on Friday, Trump told Americans that he and first lady Melania Trump have tested positive for coronavirus, sending stock futures lower. Share President Trump and the first lady said they tested positive for Covid-19, hours after top White House adviser Hope Hicks confirmed being infected.
after President Trump and first lady Melania Trump tested positive for Covid-19, adding to the political uncertainty in the final weeks before the election. Perhaps as expected, certain Chinese state media mouthpieces have appeared gleeful and gloating upon the unprecedented news that President Trump and the First Lady have tested positive for COVID-19. Stocks are falling on October 2 after President Trump and the First Lady tested positive for the Coronavirus. President Donald Trump has tested positive for the coronavirus, along with First Lady Melania Trump and senior staffer Hope Hicks.
CNBC’s Jim Cramer on Friday downplayed the stock market decline on President Donald Trump testing positive for the coronavirus, suggesting investors may want to consider buying on pullbacks. On Friday, stocks in the U.S. and abroad dropped after President Trump said he tested positive for Covid-19. In a tweet, Trump said that he and First Lady Melania Trump tested positive for COVID-19.


China Southern (NYSE:ZNH) stated that “Based on the construction of Guangzhou-Shenzhen, Beijing, and Shanghai freight hubs, we will promote the integration of regional markets.”


Because it already has the deposit facility rate below zero and yet inflation threatens to become deflation, it is unlikely that the ECB will move the rate even lower. All other central banks face the same situation, but the ECB is trapped having already set the rate below zero for several years now. The EU looks happy to let the talks run for a little longer, and certainly doesn t want to be seen to end the negotiations. The controversial legislation knowingly violates the Brexit Withdrawal Agreement and aims to fully derail the already sensitive talks on future relations.
A spokesman for PM Boris Johnson said the UK-EU negotiations were conducted in a constructive spirit and London is working hard to clinch a deal. Nevertheless, Johnson is still likely to have to offer some difficult concessions to the EU if a deal is to be reached by the end of the month. Boris Johnson will intervene in the Brexit talks in an attempt to unlock a deal. U.K. Prime Minister Boris Johnson also spurned masks earlier in the outbreak, even as he met and shook hands with National Health Service workers caring for coronavirus patients.
Truth be told, the ECB already prepared market participants for the eventuality of a lower inflation data.
The chance of a Brexit deal is still 50-50, and the currency has been plagued with volatility due to this uncertainty.