Daily Close | Forex, Metals, Oil, Agriculture August 26, 2020



Source: Goodfon The Teucrium Corn ETF (CORN) provides investors unleveraged direct exposure to corn without the need for a futures account. In the corn market, as a commodity market, the price is formed on the basis of the balance between supply and demand. The first USDA forecast in May assumed a surplus of 25 million tons for the global corn market in 2020/2021. According to the latest USDA forecast, the stock-to-use ratio for the global corn market excluding China will reach 13.9% in 2020/2021.
During the previous five years, the corn futures price was growing in the period from September to November. Therefore, in the long run, there is the relationship between the values of the stock-to-use ratio and the average price of the corn futures. But they are now the least bearish in four months: Bringing it all together, I believe that the CORN ETF could reach $13.5 per share in the coming month. Therefore, the decision to invest in this fund should be made after analyzing the corn market.
Export demand is the primary demand for US Cotton so poor weekly sales mean weak overall demand. less WHEAT General Comments: Winter Wheat markets were higher on strength in Corn and Soybeans. The latest WASDE report was almost neutral for corn. Export demand for US Cotton has been poor for the last few weeks but was improved last week. Spring Wheat was developing under good growing conditions in both the US and Canada. The hot and dry weather extends north into Oklahoma and western Kansas.
About half of the Argentine Wheat belt is still too dry.


If we look at the gold price in US dollars since Nixon abandoned the gold backing of the dollar in 1971, the dollar has lost a staggering 98%. Source: Bloomberg Dollar dumped after briefly spiking at 0830ET on the durable goods orders beat (it appears it was fake breakout of that coiling pattern we suggested yesterday)… Source: PagerDuty Investor Presentation PagerDuty’s high gross retention rate and dollar-based net retention rate of 121% shows the stickiness and demand of its products from existing customers.
Only in this century, the dollar has lost 85% against real money or gold. Gross profit on a dollar basis was $264 million, down over 40% Y/Y. Now imagine that the dollar loses 50% of its value.


Gold is responding like it did in the 1960s and 1970s and was affirmed recently when it was reported that Berkshire bought a chunk of Barrick Gold shares. There is also likely to be a new reserve currency in the form of a cryptodollar, debt moratoria etc and a possible reset linked partly to the gold price. The company’s main products consist of silver ingots, recyclable associated gold and silver-containing lead powder, and zinc powder. Financial protection in the form of physical gold and some silver is absolutely essential but that is only a small part of things to prepare for.
But if we see inflation pick up and rates remain low, both of which I expect, then I don’t view gold’s current price as prohibiting further gains. If you feel like the silver stocks have not been keeping up with the silver price rally, then you’re going to want to see this video. Anyone who understands sound money cannot seriously believe that the explosion of debt since 1971 (when Nixon closed the gold window) will end well.
The total global gold stock only increases by 1.7% or 3,000 tonnes per annum.
So scarcity is one of the important reasons why gold is the only currency that has survived in history. Source: Bloomberg Which sent real yields tumbling (back to -1.05%), and grabbed gold higher… One of the very important features of gold is that it is scarce. Gold went up from $35 per ounce to $595 from 1965 to 1981.


Source: Bluegold Research estimates and calculations Overall, over the next 15-day period, total natural gas demand (consumption + exports) is expected to average 86.3 bcf/d (adjusted for probability). Source: EIA, Bluegold Research estimates and calculations This week, the U.S. Energy Information Administration should report a relatively smaller change in natural gas storage compared to the previous week. We also write daily and weekly reports, covering key variables in U.S. natural gas market (supply, demand, storage, prices and more).
Roughly 30% of U.S. natural gas and crude oil are moved on Energy Transfer pipelines. But for Oil & Gas Value Research members, they get it first and they get analysis on some companies that are not published on the free site. Therefore, the next natural gas cycle may be more typical of historical cycles than the last one was. Total average daily consumption of natural gas (in the contiguous United States) should be somewhere between 79 bcf/d and 82 bcf/d.
The experience gained in the first sale should come in handy turning around this large natural gas producer. This is one of the few natural gas stocks I would consider holding until management decides to sell. This stock has performed well compared to many in the natural gas producing industry. Indeed, Hess reported an average oil price of approximately $20 per barrel for the second quarter for its mostly Bakken production. Oil bottomed when the Saudi Arabians led an effort to use the COVID-19 misery to crush U.S. oil production.
Research from Fundstrat shows that despite the emergence of electric cars and hybrids, gasoline use by millennial Americans is expected to double in ten years. The platforms to follow will have smoother beginnings due to the knowledge gained from each previous platform that produces more oil. Keep in mind, though, that hybrids still burn gasoline and will thus still require pistons, bearings, valves, catalytic converters, filters, and so on.
However, management appears to now realize that the Bakken differential when selling oil demands better cost control. Oil was cheap in the 1960s until 79 million baby-boomers replaced 44 million silent generation folks in the 20-35-year age cohort. When 36% more 30-45-year-old people buy houses and cars, they’ll use more gasoline for the next ten years. Oil soared in price from $4 per barrel in the 1960s to $40 in 1981. That cost-cutting and personnel reduction began before the effects of the coronavirus demand destruction and the OPEC price war became apparent.

United States

Fact there was one is mind boggling.Nasdaq was up 0.76% on Tuesday, taking it to year to date gains of 27.79% and year over year gains of 47.92%. Revenue during the quarter reached $5.15 billion, growing by 29% year over year and exceeding Wall Street estimates by $200 million. The party on Wall Street, driven by liquidity via central banks and bailouts from Congress have reinflated financial assets to nosebleed valuations as the labor market implodes.
It would also be better than results from Ross Stores (NASDAQ:ROST), which recently reported a revenue decline of over 30%. Let’s use a frequently mentioned analog to the last time a new bull market began, but substitute the Nasdaq 100 for the S&P 500.
That means simply investing in the S&P 500 would have delivered some of the year’s best returns outside of the Nasdaq or Nasdaq 100. Mr. Greenspan questioned the accuracy of reported inflation long before targeting inflation was a Fed policy tool. “President Trump is the first president in a generation to seek to end war rather than start one. We can just take the US as an example since it is the biggest economy in the world and also the most vulnerable.
At the same time, it appears that Wall Street is expecting IFF to underperform the industry and report a ~0.5% sales decline this year. The economists said, “the Federal Reserve has largely done its job,” suggesting Congress “cannot expect the Fed to keep everything together on its own.” Former Vice President Joe Biden, Mr Trump’s presumptive general election foe and a former US senator, also is expected to pay his respects.
“The governor informed [Mr Trump and Mr Meadows] we’d be increasing Wisconsin National Guard support in Kenosha and therefore would not need federal assistance in response to protests.” Since leaving Wall Street I’ve dedicated my financial career towards studying this situation and helping people understand what’s actually happening. Salesforce.com has an impeccable trajectory of outperformance, the company has delivered revenue numbers above Wall Street expectations in each of the past 16 quarters in a row.
President Trump passed an executive order to extend the extra unemployment benefits, but so far Arizona is the only state making payments. The US government will need to extend the unemployment benefits in perpetuity in order for these companies to justify the current valuations. The creeping inflation that the US and most of the world has experienced for half a century is best illustrated in the debasement of currencies. The Fed has done everything in its power to create supportive financial conditions.
The world has now entered the final phase or the end of the end of this economic era which started in 1913 with the creation of the Fed.


The company is headquartered in Beijing, China.