Daily Close | Forex, Metals, Oil, Agriculture August 05, 2020



General Comments: Cotton closed higher on hopes for improved demand and as bad growing conditions continued in West Texas.


Now, however, gold is making daily headlines, and thanks to falling interest rates and the declining U.S. dollar, the case for holding gold seems to only be getting stronger. SocGen posted a second quarter loss of 1.26 billion euros, SocGen’s crosstown neighbor, Natixis, posted a 57 million euro second quarter loss. Notice that each time the Dollar tested support with few Dollar bulls, it rallied higher. The U.S. Dollar ran into a perfect storm in 2020: a pandemic (Coronavirus), an easy Federal Reserve, and trillions of dollars in government stimulus.
The Dollar is testing its 9-year bullish up-trend support at (1) and US Dollar bulls are disappearing. The million dollar question would be if it can be used to treat or prevent lung injury in the coronavirus cousin? Competition will always be a threat, but I believe Aptose has a credible chance at seeing CG-806 become a multibillion-dollar drug ($3.5 billion to $4 billion) in the 2030’s. This means that National Beverage Corp. is making more on every dollar of sales than before.


My core long-term gold portfolio is comprised of Agnico Eagle, Newmont Goldcorp (NEM), Barrick Gold (GOLD), and Kirkland Lake Gold (KL). As is evident from the trend below, we’ve seen minimal progress in growing quarterly gold production since the first gold pour. As many unfortunate gold investors learned in February and March of this year, gold is not a crisis hedge and will not protect against losses when all markets crash. The operations produced just 2,400 ounces of gold in Q2 and silver production of 185,000 ounces, with base metal production also affected similarly.
In 2020, it is more important than ever to have a different approach towards gold since the gold markets behave in a fundamentally different way than the stock market. In the meantime, I think its peers Osisko Gold Royalties (OR), Royal Gold (RGLD), Franco-Nevada (FNV), and Maverix Metals (MMX) may outperform. The total cash costs per ounce for gold production were , up 26.5% from the same quarter a year ago.
At the time of this writing, gold prices have seen a meteoric rise, climbing up to the price targets we set earlier this year and then exceeding them. If we assume that over the next decade, bitcoin replaces 15% of the gold market, this would equate to a 24% return per year for the next 10 years. For example, Kirkland Lake Gold (KL) has a much more attractive earnings trend, not missing a beat on putting up near highs in annual EPS each year. Meanwhile, Kirkland Lake Gold is trading for less than 15x earnings despite its larger production profile, higher margins, and superior operating jurisdictions.
The results were entirely in-line despite a lower gold production of due to the COVID-19 pandemic restriction on the mining sector. It is inevitable that the oil price will continue its climb from current levels and the gold to oil ratio will return to lower levels (i.e. (Credit: Sandstorm Gold presentation) Sandstorm did not have a strong quarter, but this wasn’t entirely unexpected, given the weak sales numbers it reported last month due to COVID-19.
The price of gold continues its unprecedented climb and is now well above trend has surprised me, and I was expecting some retracement that has still to materialize. While this is true, this earnings is still inferior to Gold Resource Corporation’s peers as most miners are posting earnings breakout years in FY2020. The gold price realized was during the second quarter of 2020, establishing another quarterly record.
Agnico Eagle had a weak gold production this quarter due to the COVID-19 disruptions. Warren Buffett chimed in with his annual letter to shareholders last year as he notoriously claimed gold has no real value.
LaRonde, including zone 5 Meliadine, Kittilä, and Canadian Malartic, “including of pre-commercial gold production from the Barnat deposit at Canadian Malartic,” are the four primary producing mines.


These companies are exposed to negative headwinds, including an oversupply of oil, natural gas and liquefied natural gas. We’re at that point now in the oil sector – where despite the stability of the price of oil, the stocks are of little or no interest to investors. According to the IEA, there has generally been an annual oversupply of oil in the world oil markets over the past decade. Having noticed a lack of analysis of this likely demand driver in the public forum, we decided to share our analysis of this likely source of incremental oil consumption.
Added oil consumption due to suburbanization could be more permanent than factors such as reduced travel demand, working from home and social distancing policies. Indeed, OPEC+ began to pump more oil after production cuts that supported prices around $40 a barrel during the early stages of the pandemic. As we move past this turbulent year, we look to implications that COVID-19 may have for the future of oil supply and demand.
The company has decent hedges for Q3 and Q4, which account for 45% of its crude oil production, but 2021 is rather bare. We have identified that this current wave of suburbanization may have a meaningful effect on oil demand in the medium term. Source: Whitecap Q2-2020 financials However, Whitecap had prudently layered in a large amount of hedges when oil prices were soaring earlier in the year. The acceleration of the suburbanization trend due to Covid-19 and its aftermath may have a material, sustainable effect on the global oil supply balance.
The largest U.S.-based oil and gas producer posted a back-to-back quarterly loss for the first time this century. We did take a pause to the program with the pandemic and ultra low crude oil prices here. I believe that UNL remains one of the premier gas ETPs and that investors looking to earn strong returns in natural gas should continue holding it. The outlook for oil, however, is definitely positive as Brent crude is up 3.74% per barrel and WTI up 4.05%.
Natural gas fundamentals are quite bullish as production is collapsing while demand is strengthening. Whitecap’s production was flat from previous year with an actual move to a more unfavorable mix as natural gas increased on a relative basis. In the Spring of 2020, oil prices collapsed amid the COVID-19 pandemic and economic slowdown. Ottawa has promised to fund oil and gas through BDC Banks. When a company contracts for space on a pipeline at a certain rate it commits to send through a certain amount of oil.

United States

He also said the US has “made progress” with Russia in moving toward a new arms control treaty, however, the US “hopes the Russians will urge China to participate”. A new poll released on Wednesday showed Joe Biden with a slim lead over president Donald Trump in the key state of Texas for the 2020 presidential election. However, the company’s results in Q2 showed its business model is well structured to handle near-term weakness in the US energy sector.
However, economic improvement in the US was thrown into doubt as Coronavirus cases surged higher in states that had reopened and some chains have declared bankruptcy.
Source: 2U 2Q20 Earnings Presentation During the spring semester 2020, we saw universities using Zoom (NASDAQ:ZM) to deliver online lectures to students. Mr Trump announced he was considering the unilateral move during a coronavirus press briefing on Tuesday. President Trump fired Akard’s predecessor, Steve Linick, back in May on Pompeo’s advice. At her press conference on Monday, Ms McEnany also defended Mr Trump’s criticism of Nascar for banning the Confederate flag at its events.
Mr Trump never produced any evidence to support his claim against Mr Obama’s citizenship, despite repeated claims he had corroborating information. In 2013, then-citizen Trump said: “President should not be telling the Washington Redskins to change their name-our country has far bigger problems! In fact, investors are the least bullish the US Dollars (20% bulls) since 2011 at (2). He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post.
Today, Wall Street continues to use Zacks research including the Zacks Rank and Zacks Equity Research, which combines the best of quantitative and qualitative analysis. Back in June, the company raised guidance for its U.S segment, projecting sales growth of 9% to 11%. Mr Trump is certain that being the spokesman of a white grievance movement is the key to his re-election this November, The Washington Post reported over the weekend. The US weather situation is mixed, with good rains noted in the Southeast and good conditions in the Midsouth.
Perhaps the most ambitious goal in his plans is the 2050 target for achieving net-zero emissions across the US, if he is elected. White House reporters on Monday repeatedly challenged Ms McEnany to explain what Mr Trump meant when he wrote that Mr Wallace ought to apologise to his peers. Pompeo: “President Trump has mentioned impending action on TikTok and for good reason.” Both inside the US and outside, we have repeatedly heard that, worldwide, But what if there’s no vaccine right around the corner?


Xinjiang province, in China’s west, now produces about 85% of the country’s crop, a substantial increase over the 52% Xinjiang produced in 2012.


In June, they were less dovish but a V-shaped recovery looks more out of reach, especially with little progress on EU-UK trade talks.