Close: London Session | Forex, Metals, Oil, Agriculture October 22, 2020



Downtrend scenario A downtrend will start as soon, as the soybean market drops below support level 1063, which will be followed by moving down to support level 1046. Downtrend scenario A downtrend will start as soon, as the soybean market drops below support level 1046, which will be followed by moving down to support level 1000. less Uptrend scenario The uptrend may be expected to continue, while the soybean market is trading above support level 1063, which will be followed by reaching resistance level 1081.
Sugar market ruled steady on Thursday except prices for S-grade which declined by ₹5-10 a quintal. Cotton oil (Gujarat), on the other hand, ruled at ₹913 for 10 kg. The Bombay Sugar Merchants Association spot rates (₹/quintal): S-grade 3,222 – 3,292 and M-grade 3,276 – 3,450.


Gold prices slipped as market hopes for a U.S. coronavirus aid package ahead of the presidential elections waned, in turn bolstering the dollar. Gold prices slipped as market hopes for a U.S. coronavirus aid package ahead of the presidential elections waned, in turn bolstering the U.S. dollar. Gold rose almost 1% yesterday, the most in a couple of weeks, on the back of the weaker dollar. Perhaps on profit taking after yields reached their highest level in four-and-a-half months.The dollar shored up after falling to more than a six-week low yesterday.
Service growth is high margin (close to 100pc incremental cashflow margin for each dollar earned in revenue) and largely recurring – translated: a very good kind of growth. The possibilities of a weaker dollar and higher taxes (if Joe Biden wins the presidential election) also favors large caps, he adds. FOREX: The dollar was steady above seven-week lows, gaining some respite as hopes of a fiscal package in the United States ahead of the November elections crumbled once again.
As the 2-day stimulus deadline imposed by house speak Pelosi expired yesterday, with further talks with Mnuchin keeping the dollar under pressure. The dollar is rallying modestly on the day (and bond yields are higher but not reacting to this drop in stocks) Time to unleash the Kudlow. Ironically, the dollar trading flat suggests that currency traders are uncertain about stimulus, while equity traders are openly pessimistic.


As we can see, gold production has gone nowhere despite the acquisition of the Mako Gold Mine from Toro Gold, offset by the divestment of a smaller-scale operation: Ravenswood. For this reason I like to track the gold miners to gold ratio (GDX:GOLD). With that in mind, I also like to track the silver to gold ratio (SILVER:GOLD). As I’ve noted previously, during inflation-driven bull markets in gold, gold miners typically outperform the precious metal. I believe that the instrument makes for a solid play on gold at this time due to its methodology and holdings as well as the underlying fundamentals for gold.
They’re simply the implied non deflationary price of gold based on the M1 money supply and assuming it will have a 40% gold backing. When gold miners outperform gold, this ratio rises. When gold miners underperform gold this ratio falls. During Q3, the average realized selling price for most producers that have announced results is above $1,850/oz, and Resolute’s average realized gold price was a mere $1,694/oz.
Gold prices, and therefore SGOL, are likely to rally over the coming year due to the elevated fear levels seen in the equities markets.


Exports have become critical revenue sources for many oil companies, and the United States had regularly been exporting more than 3 million barrels per day (bpd) of crude oil. Crude oil prices took a hit after the Energy Information Administration (EIA) reported gasoline and oil demand to seem to be standing still. Producers have been drilling fewer wells following a collapse in crude oil prices this year as demand for oil products has sunk. Historical price per barrel of oil: Let’s look at the production in barrels of oil equivalent per day or Boep/d.
I have worked in the areas of oil refining, natural gas production, synthetic fuels, ethanol production, butanol production, and various biomass to energy projects.
Palm oil (Indore) today ruled at ₹925, while palm oil (Mumbai) was quoted at ₹870. U.S. oil production had declined to 9.2 million BPD while consumption had increased by 3 million BPD from the first year of Nixon’s first term. less Crude oil prices have fallen lower once again this week despite a mostly bullish report from the Energy Information Administration.
In 1970, U.S. oil production reached 9.6 million barrels per day (BPD) and began a long, steady decline. The second-largest U.S. oil company by market value lost nearly $1.7 billion in the first six months and analysts forecast a third-quarter $1.17 billion loss.

United States

If the Fed were to purchase Treasuries without also buying MBS, Treasury rates could stay low while mortgage rates could come down much less, or even move higher. In addition to Michigan, a dramatic shift in the Black vote could also help Trump win the critical swing state of Pennsylvania, and I will discuss that more below. Another consideration for this part of the yield curve could be a rise in inflation expectations due to the Fed’s “pedal to the metal” monetary policy approach.
While it would be difficult for the Fed to ease financial conditions by lowering Treasury rates further, there remains substantial room within the agency MBS market to narrow spreads. Basically, policymakers at the Fed misjudged how hot the economy could run without increasing inflation pressures and when CPI started to rise, the monetary response was too slow. The data comes as Fed policymakers continue to warn that failure to agree on stimulus is the biggest risk to the economy, apart from the coronavirus itself.
Nobody really expects Trump to win Nevada, but if enough Latino voters shift his way we could end up seeing a major surprise. The Fed and market participants have debated whether it should simply choose one tool or another, and if the time to slow the pace of purchases has arrived. But diversity experts ask: Why did it take so long and who s next?The chief executive’s at Wall Street’s biggest banks once Fraser joins next year. Goldman Sachs warned that the US GDP would shrink 29% by the end of the 2nd quarter…and that unemployment could skyrocket to at least 9%.


Beijing and Tokyo might seem unevenly matched, but Japan’s banks are the world’s largest international lenders, an advantage when it comes to facilitating cross-border activity that supports foreign-policy objectives. The Vatican renewed an agreement with Beijing on the appointment of bishops, brushing aside pressure from the U.S. which has denounced attacks on religious freedom in China. Regardless of what happens on Nov. 3, this appears to be just another confidence game being run by a ‘Taiwanese’ company that nevertheless has close ties with Beijing.
Under pressure from Beijing, the lender has also publicly endorsed China s new security law.Photographer: Chan Long Hei/Bloomberg Like Balance of Power? Reports indicate that Beijing will lift the quota for foreign investment by Qualified Domestic Institutional Investors by $10 bln.


If the ECB unveils a surprise easing package already at the October meeting, bonds would rally, spreads narrow and the EUR/USD fall. The case for even more ECB easing has strengthened further lately, but we still expect the central bank to wait until December with further easing. Quantitative easing policies and exchange rates” published earlier this week gave us clues on which instrument the ECB may use. The pressure on the ECB to ease further has increased, but we still do not expect another easing package until the December meeting.
If the ECB wanted to surprise financial markets positively, a move already next week could do the trick.
The U.K. and EU are restarting talks over a post-Brexit trade deal, less than a week after Boris Johnson suspended the discussions. However, if the ECB wants to signal that more easing is on the way, the pace of the purchases would be an easy way to convey such a message. As such, focus will be on next week’s ECB meeting, which may lay the groundwork for policy action in December. It s also the EU s first joint debt offering since the bloc agreed to its pandemic recovery deal.
“The second wave of the epidemic in Europe, particularly in France, and the new restrictive measures that accompany it add to uncertainty and weigh on the recovery,” Lagarde said.