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



On that day, nearby October sugar futures on ICE fell below 12 cents and reached a low of 11.78 cents per pound. The most recent rally that took coffee to a lower high began when the price of the continuous futures contract reached a low of 92.7 in mid-June. The iPath Series B Bloomberg Coffee Subindex Total Return ETN product (JO) tracks the price of ICE coffee futures. Since September 8, sugar and coffee moved in opposite directions as the sweet commodity recovered and coffee corrected to the downside.
Sugar rose to 12.85 on September 21 when the two energy commodities and sugar turned lower with markets across all asset classes. The iPath Series B Bloomberg Sugar Subindex Total Return ETN product (SGG) follows sugar futures higher or lower. Daily historical volatility rose from a low of 28.16% on September 4 to over 40% on September 21 as the daily trading ranges in the coffee futures market expanded. Over the past weeks, the price of October sugar futures rose from 11.73 on September 14 to a high of 12.85 cents on September 21 or 9.55%.
The selling in the energy markets weighed on the sugar price, which hit its low on September 14 at 11.73 on the expiring October futures contract. Last week’s rout in the coffee futures market that sent prices over 10% lower came as Brazilian storage facilities were never as full.


less The US dollar extended yesterday’s gains against the Canadian dollar to almost CAD1.3350, its highest level since August 12. The last few times dollar hedgers were similarly bullish, the dollar went on to generate noticeable rallies. Assets denominated in foreign currencies may benefit from a decline in the U.S. dollar on foreign exchange markets. less Silver plunged about with other metals as the dollar soars, fueled by rising global risks of new potential pandemic lockdown measures in Europe, according to MarketWatch.
FOREX: The dollar rose to six-week highs, extending gains from the previous session, as markets turned risk-averse over a surge of virus cases and new lockdown measures in Europe. With the Bloomberg dollar declining by 0.2% on top of last week’s 0.5 % decline, experts are wondering what to expect from the USD in the coming months. It’s also worth noting a recent Reuters article highlighting the dollar’s tendency to rally around the time of U.S. elections.
US Dollar’s strengthening put more pressure on commodity prices, with gold and silver falling alongside crude oil prices. Zombie companies have feasted on price-indiscriminate yield-seekers with a ravenous appetite to pay top dollar for credit that is not money-sound. It is against all this that the US dollar has been declining, but for how much longer and what impact will this have for US equity markets?


Many gold miners are listed on international exchanges, and owning a piece of the business also means exposure to the gold market. One can own gold in a portfolio to hedge against inflation, but one can also speculate on the price of gold in order to gain from its volatility. Gold can be exchanged against any fiat currency, so the currency involved affects the way gold protects against inflation. Trading gold or owning gold are two different things. 22, 2020 11:35 AM ET|| About: Kirkland Lake Gold Ltd. (KL)by: SA TranscriptsThe following slide deck was published by Kirkland Lake Gold Ltd. in conjunction with this event.
22, 2020 11:45 AM ET|| About: Equinox Gold Corp. (EQX)by: SA TranscriptsThe following slide deck was published by Equinox Gold Corp. in conjunction with this event. However owning gold or gaining exposure to gold can be done in various ways. The Gold Standard was diluted in 1933, but throughout the 1930s the US$ was tethered to gold.
The Gold Standard was diluted in 1933, but throughout the 1930s, the US$ was tethered to gold. In my view, once this correction/consolidation is over, we’ll resume bull market action, taking gold to a new all-time high near $2,200 before the year is out.


Borneo Oil Berhad BORNO MK US$88m Borneo Oil Berhad engages in fast-food operations and franchising, property, oil and gas, and energy-related businesses. Tropical storm Berta hurt oil prices and the front-month natural gas as it succeeded in shutting the Houston Shipping channel locking in oil and gas exports. less WTI crude oil prices (WTI) registered their largest single-day decline in two weeks, falling as much as 6% before paring some losses and closing 4% lower.
Lower overall oil supplies after production cuts implemented by the OPEC+ group of producers, as well as tepid fuel demand, are dampening price movements. October NYMEX crude oil futures hit a low of $36.13 per barrel on September 8, and October gasoline found a bottom at $1.0755 per gallon on September 11. BEFORE THE BELL Canada s main stock index futures rose as oil prices advanced on expectations that fuel demand could survive renewed lockdown restrictions. In its energy outlook published last week, BP predicted oil consumption may have already peaked and could fall rapidly if governments continue to embrace more ambitious climate policies.
The volatility in crude oil and gasoline prices has been clearly reflected in recent years in both the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE). That would keep oil prices, which haven t budged much from $40 per barrel for the last few months, lower for longer and, in turn, squeeze oil-dependent economies.
Given that Cascadura was gas, management’s current thinking is Chinook is most likely to also be gas rather than oil.

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. These new asset purchases have set a new all-time high and are propelling the Fed balance sheet far beyond anything seen during the Great Recession’s stimulus packages. When Trump said he had approved the new TikTok deal, he noted the new company otherwise, “we’re not going to approve the deal.”
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. Peder Beck-Friis September 2020 Blog The lack of market reaction suggests that many investors are not convinced that the Fed’s new guidance represents any material shift in policy. Policy makers also predicted that rates will stay near zero at least through 2023, the last year of the Fed’s forecasting horizon.
Last week also witnessed relatively strong gains in emerging markets stocks (NYSEARCA:VWO) and foreign property shares (NASDAQ:VNQI), which posted returns fractionally behind the pop in the GCC fund. Moreover, the US Fed told markets last week, they have not only shifted from a 2% target for inflation to an average, but they are encouraging the economic condition. In The Wall Street Journal weekend edition there is a headline “Stocks Fall for Third Straight Week,” which makes it sound like we’ve entered a bear market.
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.


China s military dwarfs that of Taiwan, but an amphibious invasion across the 100-mile-wide strait separating the two carries risks that could easily backfire on Beijing. But it’s not just Beijing collecting the user data that worries Bass – it’s the CCP’s ability to manipulate the minds of young Americans via its content-recommendation algorithm. Beijing has previously said it would rather shut down TikTok US than hand the business to the Americans. It’s hard for us to believe that Beijing will approve such an agreement.


A resurgence of coronavirus cases and a potential lockdown in part of the EU is weighing energy demand outlook, overshadowing a fragile economic recovery. Thanks to U.S. national security warnings, the European Union has at times taken a harsher stance toward Chinese technology than it otherwise would have. Rates in the EU and U.S. are low, and net interest margin is likely to remain under pressure for several years. The impasse has also complicated EU diplomacy, with Cyprus refusing to sign off on the bloc s sanctions against Belarus for its contested election.
The majority of Garrett’s sales come from Europe and the local market can’t seem to recover despite significant stimulus by several large EU countries. Looking ahead, money growth will likely remain elevated over the coming quarters, as the ECB and the BoE continue their asset-purchase programmes. less Just when one thought that Brexit negotiations and the pandemic are enough for the United Kingdom to handle, the Bank of England (BOE) delivers an unusual message.
Britons are still waiting for Boris Johnson to deliver a major announcement on Tuesday.