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

Downtrend scenario The downtrend may be expected to continue, while the corn market is trading below resistance level 321, which will be followed by reaching support level 262. less Uptrend scenario The uptrend may be expected to continue in case the corn market rises above resistance level 354, which will be followed by reaching resistance level 375. Downtrend scenario A downtrend will start as soon, as the corn market drops below support level 340, which will be followed by moving down to support level 320.
The Teucrium corn (CORN), soybean (SOYB), and wheat (WEAT) ETFs following the prices of the grain and oilseed markets higher and lower. The Teucrium ETF products, CORN, SOYB, and WEAT, move with the prices of CBOT corn, soybean, and wheat futures. On the Corn front, the corn dropped to a 1 week low due to a better than expected crop rating from the USDA, easing concerns of yield losses. The last time the grain markets experienced a weather event was in 2012 when corn and soybean prices rose to all-time highs of over $8.40 and $17.90 per bushel.
Nearby CBOT December corn, soybean, and wheat futures were trading at the $3.40, $9.15, and $5.20 per bushel levels. The grain ETN product kept pace with the double-digit percentage gains in the corn, soybean, and wheat futures markets. The derecho lit a bullish fuse under the prices of corn, soybeans, and wheat over the past weeks.

The vast interest rate differential between the US dollar and the euro currency provided support for the dollar. The Invesco DB US Dollar Index Bearish Fund (UDN) appreciates as the dollar index declines. The European Central Bank is not likely to push rates any lower, so the decline in the differential favors the euro over the dollar. The euro accounts for over 57% of the dollar index, as the European currency is the second-leading reserve foreign exchange instrument.
New lows for the year against the euro, Swiss franc, the British pound, Swedish krona, and the Australian dollar were recorded in recent weeks. Meanwhile, price momentum and relative strength indicators crossed lower and fell below neutral readings as the dollar index began to decline after the March 2020 high. What Else is Happening The euro rose above $1.20 for the first time in more than two years amid broad dollar losses. Source: CQG The quarterly picture of the US dollar index portrays a bearish technical picture for the value of the reserve currency.
Gold rose, following a fall in the U.S. dollar as investors bet on U.S. interest rates staying lower for longer. Gold advanced, following a fall in the dollar as investors bet on U.S. interest rates staying lower for longer.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall. As usual with a slump in the world’s reserve currency, the prices of useful commodities and gold are rising. By mining new gold, he is now looking to “tap surging prices of the metal”, according to Bloomberg. If the world is to return to the gold standard, the yellow metal could be revalued to $14,000 or $35,000, in accordance with 40% or 100% reserve ratio, respectively.
Hence, why would anyone ever trade their gold, the real money, for fiat, the fake money? The potential of real estate prices should be as pronounced as gold, if not more. Gold prices are trading up by 0.5% at Rs 51,964 per 10 grams. We already can see the fear of inflation and high liquidity impacting the price of gold. In fact, since the abandonment of the Bretton Woods System in 1971, many central banks have been increasingly hoarding the most gold in their vault.
Although gold appears to lack follow-through as the sentiment on the global equities remains buoyed by the Fed’s dovish narrative.

Crude oil prices, demand for motor fuel oil and operating efficiency of Sunoco LP are the key parameters to keep an eye on for its unitholders. We can see from Figure 2 that the consumption of motor fuel and distillate fuel oil is not affected by crude oil price volatility. This is evident from the historical data of gross motor fuel margin (company 10-k) and crude oil prices over the past five years shown in Figure 1. During times of rising crude oil prices, Sunoco LP can pass the higher petroleum product prices to the retailer, thus reducing retailer margin.
U.S. oil output rose 420,000 barrels per day in June to 10.436 million barrels a day, the U.S. Energy Information Administration said in a monthly report on Monday. Crude oil imports into the Mediterranean (MED) rose last week, increasing to 29.9 mmbbl from around 28.9 mmbbl a week earlier. Brent crude futures, the global oil benchmark, rose 1.15 per cent to USD 45.80 per barrel. By operating in the transportation and distribution phase of the petroleum industry, Sunoco LP either passes or absorbs the effects of changing crude oil prices.
less Crude oil prices have largely ignored the fireworks in most other corners of the financial markets, with the WTI benchmark drifting in a narrow range. YoY, the increase in margin (48%) offsets the decrease in motor fuel gallons sold (-26%), resulting in an increase in motor fuel oil gross profit compared to Q2 2019.

Which is to say the Fed will tolerate inflation running higher than its official 2.0% target for sustained periods of time going forward. As everyone by now knows, inflation over the last several years has largely come in below the Fed’s 2% target. Dwyer is bullish, but not just because the Fed’s new framework and massive U.S. debt loads likely mean 0% policy rates for many more years. Will the Fed’s new approach allow it to get inflation back up to 2% on a sustained basis?
“It’s lower for considerably longer, if you believe as the Fed does that the recovery in the economy and the labor market is going to take years. Among the many things announced, the most relevant is the official communication that the Fed was looking into “average inflation targeting”. The key thing to remember is that the Fed operates with the premise that there’s a tension between labor market strength and inflation. Except for investment-grade bonds in the US and foreign-government fixed income in developed markets, across-the-board gains dominated the major asset classes higher last month.
The Fed has not achieved its 2% inflation target since 2012. While the US Fed began increasing short-term interest rates in late 2015 and early 2016, European rates remained in negative territory.

But the dismal stock performances also reflect new, unwelcome attention from Beijing: China’s central bank and housing ministry last month corralled developers to discuss lofty debt levels. As tensions mount between Washington and Beijing, companies in Europe increasingly risk becoming collateral damage in the crossfire of new rules and restrictions not necessarily designed for them. Beijing continues to send fighter jets around Taiwan, prompting Washington to issue an assurance that it would supply its government with enough weapons to counter a growing threat.
The China Central Bank (PBOC) is also extremely aggressive for a currency that is only used in 4% of global transactions according to the Bank of International Settlements. The unexplained detention of an Australian citizen who worked as a TV anchor in Beijing now threatens to exacerbate ties that have been deteriorating for months. ByteDance is reconsidering its options for TikTok and weighing the implications of Beijing’s involvement in the sale of its U.S. operations, people familiar said.
Some European governments have bowed to U.S. pressure to target Beijing, even to the detriment of their own homegrown companies.
The sharp exchange in Berlin undermined what had been billed as a charm offensive by Beijing.

Phil Nijhuis/ANP/AFP via Getty Images By the Way The ECB would create history in gender diversity if its next appointment to the Executive Board is a woman. Putting one more woman on the top team would make half of the six-member panel female, including Christine Lagarde and Isabel Schnabel. By now, I have built up excellent skills and experience in analyzing macroeconomic and political developments in Europe, the Eurozone and Germany, including ECB watching.
In addition to the breakthrough in the EU, AstraZeneca also successfully managed to move its COVID-19 vaccine into the Phase 3 trials in the U.S. Opinion Keir Starmer’s attacks on Boris Johnson’s competence and his more centrist stances on cultural issues are hitting the mark, Matt Singh writes for Bloomberg Opinion. This could also hurt EU exports. Of course, not much about the EU s tech policy is simple. ECB has a shot at gender parity on executive board. His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc.
The EU hasn t followed Washington s lead in all things, though.