Daily Close | Forex, Metals, Oil, Agriculture December 01, 2020



Export sales have been great in recent weeks although, exporters have not reported any sales of 100,000 mt of soybeans since November 9th. The selloff was broad-based with WTI down 2.$% during the trading day and a weaker than normal corn market which combined, and the pity party was on. Still the export of corn and soybeans are way ahead of than last year at this point. The early product was wheat flour, and in 1880 they won a gold medal at the Millers Exhibition, leading them to brand their product Gold Medal Flour.
USDA said that 84% of US Cotton is now harvested, from 77% last week, 82% last year, and 79% average. In the overnight electronic session, the March corn is currently trading at 428 ¼ which is 2 ¼ cents higher. less General Comments: Cotton closed lower on some speculative long liquidation before the end of the month and improved US harvest weather.


The US Dollar (via the DXY Index) has hit fresh two-year lows, largely driven by gains appreciated by its largest component, the Euro. Scenario one seems far likelier, as a default by the U.S. government would create unprecedented panic and loss of confidence in the dollar. But Type 2 investors have to use all tools to compound with limited risks: a dollar today has a much higher future value. In a similar move, their peers at JPMorgan on Monday raised euro-area equities to overweight, while downgrading U.S. shares to neutral.
The Euro is starting off December on strong footing, with all EUR-crosses rallying thus far on December 1. But it’s the type of scandal that could handcuff the ECB from materially altering the Euro’s near-term path. To say the Euro is having a good start to a new month is an understatement.


The authors’ conclusion: “Going into the end of the year, we think the risks in the equity market are high while gold and gold miners look relatively attractive.” Therefore, intermediate and longer-term gold is likely headed much higher regardless of vaccines and any other transitory variables that cause temporary market gyrations in the gold market. Often times, before we see a bottom in the gold market gold miners begin to illustrate positive price action.
The reason for this is that the company is a high-cost gold producer, which means it provides significant leverage to gold prices. We see this from the technicals in gold, as well as a turnaround in gold mining stocks. One casualty of the rush to risk in November was gold; the S&P GSCI Gold fell 5.6% and ended the month near a five-month low. However, gold is not a trade, gold is an investment. Gold miners have put cost controls in place as the price of the underlying metal rose to new all-time highs.
In other words, based on this expectation for silver’s price gains, SIL is likely going to remain the better alternative and deliver a stronger return than silver itself. On this basis, I believe that silver momentum is a strong tendency around which to base a market outlook for silver prices. The price of bitcoin swung wildly last week, along with gold, flirting with its all-time high on Wednesday before plunging more than $3,000. (Source: DRDGold) As of time of writing, the price of gold is almost $57,000/kg, which is equal to 870,000 rand per kilogram.
Gold began to make a strong comeback, and right around crucial resistance at roughly $1,960 news about the Pfizer (PFE) coronavirus vaccine came out. We see a similar image in junior gold miners, which appear to be basing around 200-day moving average support. Overall, I think DRD should be worth at least $13 per share at the current price of gold. Still, keep in mind that the leverage to gold prices is high and any decrease in those will hurt the company.
I view gold as a commodity whose price performance is almost impossible to predict.
Moreover, we saw a bounce off 30 RSI (relative strength index), implying severe oversold conditions were present in the gold mining market. Higher inflation coupled with an expanding monetary base is a perfect recipe for higher gold prices. Fundamentally, the vaccine news is probably fully priced into the gold price.


While oil prices have rebounded recently, large capital expenditure plans for the future may not allow for the current payout to be sustained. I doubt that there would be any new projects or capital investments in the oil industry given the current difficulty that it is going through. The immediate application of this technology is in the oil and gas industry in particular to support off-shore drilling projects. With the downturn in oil prices impacting results, future capital expenditure forecasts were reduced.
Crude Value Insights offers you an investing service and community focused on oil and natural gas. On the Crude Oil Front, we have come off the highs made in the overnight with news OPEC+ delays talk which is raising supply alarm. *Today produced data on US oil and gas production in Sept. Despite seeming at first glance to be a play on renewable energy, Ocean Power Technologies is actually highly dependent on the oil industry. The production of gas fell but that of oil rose.
In the overnight electronic session, the January crude oil is currently trading at 4530 which is 21 points lower. Hopes for a vaccine, however, are causing a massive headache for members of the global oil cartel and its Russian-led partners. Share Photo: Andrey Rudakov/Bloomberg News By Jinjoo Lee Close Dec. 1, 2020 12:27 pm ET The arrival of a vaccine is a blessing for oil producers.

United States

less Zoom Video Communications (ZM) is falling sharply today after the company reported earnings that beat Wall Street analyst expectations, but not the expectations of investors. Comparison of Industry peers A key risk in the short-term in investing in this company is its mixed track record in terms of hitting Wall Street earnings expectations. Without the Fed’s intervention in the bond market, it would be virtually impossible for the US government to borrow money at the current level.
With more than $27 trillion in national debt and a total debt to GDP ratio of nearly 144%, the Fed essentially cannot afford to raise rates. Either the Fed will need to “print” an enormous amount of money to inflate the debt away, or the U.S. will be forced to default on its bond obligations. I know the Fed is not talking about this now, but it will likely need to implement this strategy eventually to deal with the debt issue. less The US election is still being disputed by republican fiat bugs, but it looks more and more likely that democrat fiat bugs have won.
Source: Nasdaq Further, looking at earnings revisions, the Company has held flat its forecasts over time with very few revisions. Source: TipRanks Looking at the follow through from Zoom (NASDAQ:ZM) earnings, I could see DocuSign easily beating numbers and the stock jumping 5%+ on the print. In my view, defaulting is out of the question, but the Fed will likely inflate (implement scenario one) before eventually pivoting toward scenario three.
Micron (NASDAQ:MU) is jumping on Dec. 1 after the company raised its fiscal first quarter revenue and earnings guidance.
U.S. investors can initiate an ownership stake via American Depository Shares (ADS), representing two ordinary shares, traded on the Nasdaq exchange with the “JD” ticker. Trump would need to sign the legislation but Coronavirus Stimulus Talks Restart. Meanwhile, inflationary pressures – no matter how hard the Fed tries to ignore them – are building: the PMI Composite Output Price index just posted its highest reading ever. From 10-K edited by the author for brevity The Mattress industry in the US is large at $15.7 billion, growing at a CAGR of 3.5% and highly fragmented.
He explained that “whiteness” today carries less weight, as it is now associated with Donald Trump and Charlottesville protesters. It did not matter that former Justice officials, including outspoken critics of Trump, questioned whether her action was ethical or justified. According to the Oct. 19 order obtained by AP, Barr authorized Durham “” used against the 2016 Trump campaign or members of the Trump administration.
One week later, Trump signed an executive order that restricted travel to the United States from seven Muslim majority countries. In fact, the Fed is already backstopping the market and making this borrowing binge possible.


The point is, Philip Lane is a dove’s dove, perhaps the most outspoken dovish member at the ECB. The European Union used to have the same unemployment rate as the United States.