Daily Close | Forex, Metals, Oil, Agriculture August 11, 2021

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Agriculture

The corn market seemed to be trading a little more risk-on in last night’s trade and the market seems way undervalued. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. Dry weather in southern Russia as well as the northern US Great Plains and Canadian Prairies remains a supportive feature in the market. less General Comments: Winter Wheat markets closed higher on stronger world markets.
On the Corn front, last night’s storms as of 8:00 P.M. showed 175,000 customers were having power outages. In the overnight electronic session the December corn is currently trading at 560 which is 6 ¾ cents higher. US White Winter Wheat production is also being hurt by hot and dry weather. We will have corn for ethanol use in tomorrow’s USDA report. Trends in Winter Wheat markets are still up.

Currencies

Consumer prices are due for release on Wednesday and a good number would reinforce expectations for taper in the fall, driving the dollar higher. Also, any slowdown will probably be immaterial so for the most part, the dollar’s uptrend should remain intact. The best performing currency was the Australian dollar which shrugged off a sharp decrease in business confidence and more restrictions in Australia. The question then how much a slowdown matters to the Fed and in turn the U.S. dollar?

Metals

Gold prices rose as well, following the Consumer Price Index (CPI) reading out of the U.S., which showed consumer prices rose at a slower pace last month. Don’t be surprised to see a fresh wave of Chinese buying regardless that they have pulled back on purchases of crude oil, iron-ore. Copper and grains. Precious metals, and the miner ETFs, react to extreme fear in the markets usually by selling off quite aggressively in volatility events. The most active contract, December-dated gold, gained $21.60, or 1.3%, to settle at $1,753.30 an ounce today.

Oil

less General Comments: Futures were higher yesterday and made new highs for the move on hopes for improved demand and on higher Crude Oil futures. As a result, September-dated crude added 96 cents, or 1.4%, to settle at $69.25 a barrel for the day. This complements the US Weekly Gasoline Import Forecast that is emailed and posted to Eikon each Tuesday.

United States

less (Nasdaq: COIN) gained more than 7% on Wednesday after the company reported a surge in second-quarter profits during a particularly volatile period in the cryptocurrency market. Britain, where the currency is very strong now, is more at risk than the US if the price of refrigerators is anything to go on. To follow, Citigroup upgraded UPST to “buy” from “neutral” with a price-target hike to $205 from $120, while Jefferies and Piper Sandler raised their price objectives as well.
The sales are now the weakest since the Pandemic began and are likely to head lower as the world and the US emerge from the pandemic. 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. Research from our team of in-house analysts has been quoted by The Wall Street Journal, Bloomberg, MarketWatch, USA Today, Kitco, Reuters, US News & World Report, CNBC, and more.
In effect, the Fed has been trying to increase inflation, operating at the macro level. less Canada Goose Holdings Inc (GOOS) is tumbling after reporting earnings that failed to impress Wall Street. More recently, in August of 2020, Fed Chairman Jerome Powell introduced a policy that not only allows for a level above 2% but welcomes it. Elsewhere, the Cboe Volatility Index (VIX), Wall Street’s “fear gauge,” fell to its lowest close since July 2. He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post.
That was an acceleration from the previous two quarters and about 13% ahead of Wall Street’s projections. Near the top of the Nasdaq, today is , up 23.2% to trade at $167.29 at last glance. Unheard of in the days when all Wall Street could say was “Buy”. You will be charged $ + tax (if applicable) for The Wall Street Journal. Meanwhile, the Nasdaq was sidelined once again, dragged down by FAANG names.
at 9:30 A.M., Fed George Speech at 11:00 A.M., 10-Year Note Auction at 12:00 P.M., Monthly Budget Statement (Jul) at 1:00 P.M. and Dairy Product Sales at 2:00 P.M.

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