Close: London Session | Forex, Metals, Oil, Agriculture October 19, 2020



Open bolls were reported in both regions and Cotton fiber was discolored or else blown out of the bolls due to the rain and winds. On the Corn front, the facts are just the facts, and 1.1 million tons of U.S. corn purchased has been shipped to China. The discolored Cotton is getting a chance to recover now as it has turned dry and the fiber can be naturally bleached by the Sun. In the overnight electronic session, the December corn is currently trading at 405 ¼ which is 3 ½ cents higher.
That dividend increase can buy us a few cups of coffee each year (kidding)! The Bombay Sugar Merchants Association spot rates (₹/quintal): S-grade 3,226 –3,292 and M-grade 3,276 – 3,440. Hurricane Delta moved through the Delta and Southeast and did some damage to Cotton.


This could continue in the short term, but we believe that the dollar is likely to resume its weakening trend further out as the global recovery continues. The US Dollar index was little moved at 93.70, offering few clues to commodity trading in terms of the currency impact. Net speculative positions by hedge funds that the euro will rise against the dollar are at a two-month low, according to data from the Commodity Futures Trading Commission. Let’s try harder than ever to make every dollar count and invest every cent possible into income-producing assets.
The yuan has appreciated by almost 4% against the dollar this year, making it among the strongest currencies in the world. Though the dollar value of capital recycling has been increasing, returns have shown little sign of deteriorating – a key positive. Gold clamber back above the $1,900/oz mark and silver stormed 1.7% higher, as the haven-associated US Dollar slid lower. The stronger dollar pulled down bullion prices, but its impact was offset by U.S. House Speaker Nancy Pelosi’s statement on the coronavirus relief package.
Extreme Bond AND Dollar positioning could be a big source of instability here – impacting all risk assets. Mixed economic data out of China took some of the wind out of the sails of the cyclically-sensitive Australian Dollar, as it retreated from session-highs after the announcement.


As concerns the gold which has already been mined (total above-ground stocks), the World Gold Council estimates there are just 197,576 tonnes of gold the world has. Kirkland Lake Gold has underperformed most of my other long-term gold miners and also the VanEck Vector Gold Miners (NYSEARCA:GDX). AISC for gold is expected in the range of (including Detour Lake), and operating cash costs per ounce for gold is projected at From KL news. The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions.
As concerns gold nowadays, not many people from the general public even consider buying gold. To know more about gold, visit our YouTube Playlist on gold investing. Downtrend scenario A downtrend will start as soon, as the gold market drops below support level 1890, which will be followed by moving down to support level 1848. Some experts that predict hyperinflation, or even a civil war, in the US expect the gold prices to reach $20,000 per ounce in a few years.
This factor is helping to drive the price of gold and silver up all year, but they too can pullback from time to time. The prices of gold remained close to the psychological price level of $1,900 an ounce on Monday.


Plunging valuations and weakening demand for oil and gas have created an opportunity for larger oil and gas firms with a less debt-laden balance sheet to expand via acquisition. Saudi seaborne crude exports for last week were seen at 45.5 million bbl (6.5 million bpd) compared to the revised 41.8 million bbl (6.0 million bpd) the week prior. Last week, the Energy Information Administration (EIA) reported a crude oil inventory draw of 3.8 million barrels (MMbbl) for the week to October 9.
The country processed 57.35 million tonnes of crude oil last month, or 13.96 million barrels per day (bpd), according to data from the National Bureau of Statistics (NBS).
The company posted its fourth-straight quarterly loss, as the world’s second-largest oilfield services provider struggles with a plunge in demand and lower oil prices. At 489.1 MMbbl, commercial crude oil stocks are still above the 5-year average (+44.3 MMbbl) as well as above last year’s level (+54.3 MMbbl). Despite the fact that crude oil stocks rose by almost 2,520 kilolitres over the past six months (23.2% growth), they still remain below the 5-year average level (-190 kilolitres).
US equity futures edge higher amid favorable sentiment, which may also buoy crude oil prices. Since 2016, the year in which it was revalued by 59%, Halliburton has not closed a positive year on the stock market, coinciding with the moderation in oil prices. Oil prices fell as concerns over rising coronavirus cases globally dampened prospects for a quick demand recovery.

United States

President Donald Trump said that he wanted “a bigger number” and that Senate Republicans would agree to it “in the end.” The outcome on Nov. 3 will also have a major impact on what comes next; a big question is what Trump might do after the election. Twitter Deletes Trump Adviser Post About Masks Medical adviser Atlas said wearing masks doesn t help slow Covid’s spread. less Neel Kashkari, in a recent CNBC interview, said, “I don’t see any moral hazard here“ when asked if the Fed’s massive liquidity injections have blown a bubble.
Last week kicked off third-quarter corporate earnings season in the US, with the financials sector dipping by 0.9% after most of the big banks delivered their Q3 updates. I can imagine some reasons that polls could be underestimating Trump s support, but I could do the same for Biden. Fed officials drafted much longer statements for release, but Greenspan reasoned that a short, clear message would do the most to stabilize markets.
According to the Wall Street Journal, many analysts in the foreign exchange market expect the Reserve Bank of Australia to cut interest rates at its next meeting. “There’s really no backstop here,” said the FDA chief in the Trump administration, because treatments and a possible Covid-19 vaccine won’t be available for a while longer. On one hand, massive monetary stimulus from the Fed and solid earnings from the mega-cap leaders are providing a tailwind for prices.


America saw its actions as “catching spies in accordance with the law,” while similar actions by Beijing were dismissed as “hostage diplomacy,” Hu said. Lemahieu also cited wolf warrior diplomacy — more aggressive rhetoric and actions from Beijing’s envoys — contributing to that drop. Equal measures | China passed a new law to restrict sensitive exports to protect national security, helping Beijing gain reciprocity against U.S. as tech tensions mount. The previous report showed retail sales rose only 0.5%, and Beijing was criticized by some observers for emphasizing supply-side issues over demand.
Precisely how the PBOC is able to achieve this is a bit of a mystery, owing in part to the lack of transparency of Chinese reporting. His efforts were set to be crowned with a state visit by Chinese President Xi Jinping that was planned for the spring. All in all this sets up China comfortably for the around 2% y/y GDP output predicted by the PBOC Governor yesterday.


Furthermore, in contrast to the rising levels of inventories seen three months before the past Brexit deadlines, 2020 has so far seen a continual fall in inventory levels. Five Things Follow Us Get the newsletter New stimulus deadline, another coronavirus milestone and a fresh twist in Brexit talks. A similar situation was seen in the lead up to the next potential (but also subsequently postponed) Brexit deadline of 31st October 2019, with stockpiling by manufacturers widely reported.
Meanwhile, British officials are reportedly preparing to water down Johnson’s controversial Internal Market Bill after the EU took legal action over the proposed legislation.
There will be apparently be none of the promised talks this week, and Hard Brexit looms, which is now being called an Australian deal. EU diplomats and officials have cast Johnson’s move as little more than rhetoric, portraying it as a frantic bid to secure concessions before a last-minute deal is done. Read: U.K. Could Rewrite Lawbreaking Brexit Bill as Part of EU Deal Published on October 18, 2020, 5:30 PM EDT Have a confidential tip for our reporters?
This time, the amount of stock building was less – approximately half – than seen ahead of the first Brexit deadline. U.K. chief Brexit negotiator David Frost is due to hold discussions with the EU’s Michel Barnier later as they seek a way to quickly restart stalled talks. This brinksmanship adds to the risk of a potential ‘no deal’ Brexit by the end of the year.