Close: London Session | Forex, Metals, Oil, Agriculture October 20, 2020



Downtrend scenario A downtrend will start as soon, as the cocoa market drops below support level 2350, which will be followed by moving down to support level 2160. Downtrend scenario A downtrend will start as soon, as the coffee market drops below support level 104, which will be followed by moving down to support level 95. Downtrend scenario A downtrend will start as soon, as the cotton market drops below support level 57.1, which will be followed by moving down to support level 50.
less Uptrend scenario The uptrend may be expected to continue in case the cotton market rises above resistance level 71.80, which will be followed by reaching resistance level 75.40. On the Corn front, harvest is moving along and ahead of schedule and yields are looking pretty good. There have been plentiful and cheap corn supplies in the west-central region of Brazil that attracted investment in the corn ethanol sector over the past few years. On the Ethanol front, a report predicted growth in Brazilian corn ethanol production.
In the overnight electronic session, the December corn is currently trading at 405 ½ which is ¼ of a cent higher. Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit. We should be wrapping up harvest in the not so distant future with certain states already done harvesting soybeans.


In Neemuch mandis, dollar chana traded low with dollar chana (best quality) quoted at ₹ 5,850-6,520 a quintal, while dollar chana (average) ruled at ₹ 5,420-5,760 a quintal. We like emerging markets here as we believe the dollar is at an inflection point where the last several years of strength could turn into several years of weakness. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.05 per cent to 93.37.
Today the oil market is priced in dollars, but could that be re[placed with a dollar digital currency? The US dollar poked above CAD1.32 briefly in early European turnover and met determined sellers, perhaps related to a $515 million option there that expires today. There is a risk of loss in trading One of the best ways to play the index being sold off rather drastically is to simply buy the US dollar. The dollar firmed to six-day highs against the yen just above JPY105.60, where an $885 million option expires today.
With politicians and central bankers desperately trying to paper over real economic losses with artificial stimulus, the outlook for the value of the U.S. dollar looks bleak. Any breakdown in stimulus negotiations would likely send the US dollar higher into the November 2020 election. The US dollar index continued its slide from the beginning of the week, as it closed 0.35% lower yesterday.


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. less Renewed hopes of additional US stimulus combined with economic uncertainty increased the demand for Gold, Silver, and other safe-haven assets temporarily, before retracing back into its rangebound state. The company posted a 7.2% rise in first-quarter iron ore production, slightly above expectations, supported by stable demand from China, the world’s top consumer of the steelmaking ingredient.
The motor vehicle industry already consumes over 36 million ounces of silver per year – and that number will surely grow as global demand picks back up. The GoldSwitzerland Division was created to facilitate the buying and storage of physical gold and silver for private investors, companies, trusts and pension funds. BHP said, however, that December quarter iron ore production will be affected by work linking its Mining Area C and South Flank projects in Western Australia.
Pricing wasn’t too bad, with steel product pricing falling 4% qoq and downstream product pricing up modestly.
less Equities remain bid on stimulus hopes EU inflation rises Nikkei -0.44% Dax -0.26% UST 10Y 0.77 Oil $41 Gold $1900/oz BTCUSD $11725/oz. North American revenue fell 8% yoy and rose 5% qoq, with strong steel product shipments (up almost 9%). Gold prices are trading down by 0.2% at Rs 50,578 per 10 grams.


Fujairah fuel oil inventory levels for the week ending 12th Oct were lowest since Aug 2019 and were assessed at 8.9 million bbl as per Refinitiv Oil Research. So says the guy who helped manage an oil price war that brought the global oil industry to its knees in the throes of a worldwide pandemic emergency. The IEA cut its outlook for worldwide oil demand to 91.7 million barrels per day this year while OPEC brought its forecast down to 90.2 million in 2020. As both oil and gas demand has seen significant demand destruction this year, prices for both have plunged.
The frequently cited breakeven price for the Saudi government budget is $80 per barrel, although Saudi government budget discussions seem to revolve around an oil price of $50. OPEC and the IEA both agree that demand is still fledgling, having both cut world oil demand forecasts. PNOC was awarded Service Contract 57 by the Department of Energy in 2005 covering the Calamian oil and gas prospect, near the Philippines’ Malampaya natural gas discovery.
Crude Value Insights offers you an investing service and community focused on oil and natural gas. Riding on strong futures and global cues, rally continued in soya oil on weak availability of soya seeds with the crushers. Please also see our Cross Commodity Report published yesterday, a joint publication by the power, carbon, coal, oil and gas analyst teams in Refinitiv Commodities Research.

United States

The US stock market witnessed a sell-off on Monday due to fiscal stimulus talks shifting market sentiment. “You could say the market is discounting that Trump is going to lose,” said Daniel Clifton, Strategas Research head of policy research. Another positive for Caterpillar is that the US housing market, which is responsible for a significant amount of construction activity in the country, has done well throughout this crisis. The market tends to do the opposite of what most people think, and most people think a Trump reelection will be positive for the market.
He proceeded to paint a scenario of what he could do – though Trump said he would not actually make the kind of phone call he described. Market participants opted to ditch the US currency in anticipation of an elusive new coronavirus stimulus deal that remains subject to bipartisan wrangling. US stock futures are trading higher today, indicating a positive opening for Wall Street indices.
Wall Street began to realize that the pandemic would have serious implications for the broader market, including retail real estate. The US housing market’s strength should, at least, be an incremental positive for Caterpillar going forward, as this will result in a solid demand baseline for construction machinery. There was hope of a deal being reached imminently to help safeguard the US economic recovery, but that is becoming less likely as politicians continue to lock horns.


India s government is considering formally starting talks on a trade deal with Taiwan as both democracies see relations with China deteriorate, in a move sure to anger Beijing.


The introduction of a lower loan rate (TLTRO) gives the ECB more scope to go deeper into negative territory (deposit rate at minus 50 bp) without being particularly disruptive. After last week’s EU summit drawing no conclusion, Downing Street seemed to announce that talks have ended. EU’s first social bonds are a blockbuster issuance. EU negotiator Barnier seemed to offer intensification of talks and to begin the drafting of the legal text. If Prime Minister Boris Johnson agrees to hold official talks, sterling could shine.
Pay the EU 26 basis points per annum for the privilege of owning them and what can possibly go wrong when the ECB will buy them.
but the official British position remains that the EU first needs to make concessions. The pound ended yesterday’s session 0.38% higher on the back of further uncertain Brexit negotiations. ECB President Lagarde continues to call on continued fiscal and monetary support to avoid further losses of viable businesses. The EU will issue its first 10 and 20-year SURE bonds this morning.