Close: London Session | Forex, Metals, Oil, Agriculture September 29, 2020



Soybean exports to China could regain some lost market share on Biden s more diplomatic approach. Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit. Basically, they make coffee paper cups or cereal box packaging.


Karakama added that market participants were also keeping a close watch on progress over stimulus talks: “The dollar market has been broadly bottoming out from low prices since mid-September. The dollar is narrow ranges, mostly a bit softer, led by the Antipodeans and British pound, which has been resilient in recent days. The dollar is in narrow ranges, mostly a bit softer, led by the Antipodeans and British pound, which has been resilient in recent days.
The company also highlighted the reduction of the operating loss on an adjusted basis and on a dollar basis, at $26 million versus $30 million. We believe the dollar’s bull market is over and that the bear market will only accelerate when these lows are eventually taken out. The PBOC set the dollar’s reference rate at CNY6.8171, which is slightly higher than many banks expected. If this happens, we would expect to see people losing confidence in currencies like the dollar. As we recently discussed in a previous article, we believe the US dollar is in danger of completing a multi-year double top formation which is a bearish pattern.
Then on Friday, U.S. jobs data for August, when nonfarm payrolls are reported.Neither will be a game changer to the longer-term outlook for gold and the dollar. Further weakness in the US Dollar may also offer XAU/USD a boost over the next 24 hours.


In other words, by historical standards the gold price is still very high relative to the cost of energy, meaning that gold mining profit margins remain elevated. Monarch Gold is advancing a portfolio of gold projects in the Abitibi mining camp in Quebec, Canada. Its shareholders include Alamos Gold (AGI) (16% owner), Yamana Gold (AUY) (6%), Hecla Mining (HL) (4%) and Agnico Eagle (AEM) (3%). – Yamana Gold invested $4.2 million in Monarch Gold on June 11.
With gold prices rising again, is it time to buy gold? There has been a decent number of insider transactions recently in the gold & silver mining sector following the recent dip in the metals. For two reasons, the high probability that the gold/oil ratio peaked on a long-term basis 5-6 months ago is not bearish for gold mining stocks. First Majestic Silver owns a portfolio of producing gold & silver mines and projects in Mexico. It is estimated to produce 142,000 ounces of gold per year at $630/oz AISC over a 11-year mine life, with reasonable upfront capex expense (C$464 million).
– Alamos Gold most recently bought 3 million shares at C$.24 on June 10, bringing its stake to 43.38 million shares.


As Iacinno advised in his first Alpha Trader appearance, if you’re bullish on oil, buy oil (not an ETF, and not the oil producers). Later on Tuesday, the API will publish its weekly report on crude oil inventories ahead of Wednesday’s EIA report and Friday’s oil rig count by driller Baker Hughes. Around the globe, oil supply is tightening, and we see reports of increased Japan imports of oil and more stories of gasoline into India. Source: Bloomberg Oil executives use simple valuation formula for valuing oil deposits.
less Prices of the American benchmark for the sweet light crude oil broke below the $40.00 mark per barrel and slipped back to the $39.70 region on Tuesday. Elsewhere, five analysts polled by Reuters on average estimate U.S. crude oil inventories rose by 1.4 million barrels in the week ended September 25. Enterprise Products Partners is a master limited partnership that transports and processes natural gas, natural gas liquids, crude oil, refined products, and petrochemicals.
Sentiment-linked crude oil prices aimed cautiously higher over the past 24 hours as the commodity benefited from a rosy session for global equities.
Otherwise, crude oil prices may continue benefiting from the ‘risk-on’ tone. BEFORE THE BELL Futures for Canada s main stock index edged lower, as oil prices fell on demand worries.

United States

Wall Street futures were little changed and European shares slipped as investors awaited the first U.S. presidential debate and eyed progress of a fiscal stimulus package in Washington. The market will also focus on the unemployment rate, as the Fed indicated many times lately that high employment levels remain on its priority list. Wall street analysts are currently very bullish on the company, with a one year target price though estimated at $12.
The discussions around entry to the US market have provided the stock with a significant boost, up more than 100% at one point. Consider the US investment-grade benchmark via Vanguard Total US Bond Market (NASDAQ:BND), which posted a slight 0.1% slide last week. Face off President Donald Trump and Democrat nominee Joe Biden come face to face tonight in the first of three scheduled pre-election debates. Getting an effective vaccine to market in months instead of years will save hundreds of thousands of lives in the US and probably millions worldwide.
As UBS’s Art Cashin has pointed out, the market is largely dominated by momentum around the Covid story, not by fundamental analysis around earnings and valuation. The chances for stronger economic growth and higher inflation over the longer term increase as the Fed policy pushes the next interest-rate hike nearer to the 10-year mark. The combined short exposure on the stock market index futures on S&P 500, Nasdaq 100, and Dow Jones is almost $50 billion.


Here is PIIE’s breakdown of China’s imports by product type, showing Beijing is severely behind in purchases of agriculture, manufactured goods, and energy products.


The EU competition enforcer will now seek feedback from rivals and customers before deciding whether to accept the concessions, demand more, or either clear or block the detail. The final round of Brexit talks kick off today before a self-imposed deadline for reaching a trade agreement by Oct. 15. Almost needless to say that the ECB hardly ever reacts to actual inflation developments but to inflation expectations and forecasts. The discussions are intended to bridge gaps on EU boats’ access to U.K. fishing waters and the amount of support that governments are allowed to give businesses.
Lurking in the background is the U.K.’s Internal Market Bill, which is still making its way through parliament, but includes clauses that override parts of the Brexit withdrawal treaty. The two sources, who spoke on condition of anonymity, said the Elysee Palace, President Emmanuel Macron’s office, had asked Le Drian to produce the letter. At the same time Reuters has multiple sources claiming instructions to write the letter came from Macron.
Lagarde reiterated before the European Parliament that eurozone deflation may persist a few more months, though next year’s forecast is for recovery to 1%. 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. To be climate neutral, then, would mean also stopping any particulate matter pollution, but that s not something the EU has promised.