Daily Close | Forex, Metals, Oil, Agriculture December 17, 2020



USDA said that net weekly Upland Cotton export sales were 420,900 bales this year and 13,800 bales next year. This year alone, corn and wheat prices have increased by 9.28% and 4.29% per bushel respectively. less General Comments: Cotton closed higher once again on follow-through buying tied to the USDA reports and increased export demand. There have been concerns about the persistent dry weather conditions in South America that have led soybean prices to increase to a six-year high.
less General Comments: Winter Wheat markets were a little lower after a wide-ranging session that saw new highs and lows for the week made. News that Egypt paid its highest price in five years for Romanian and Ukrainian Wheat earlier this week was also bullish. The reports showed a significant drop in production of US Cotton and much reduced the US ending stocks levels. The Teucrium Corn ETF (CORN) has increased by 14.89% in the past 6 months while the Teucrium Wheat ETF (WEAT) has surged 14.42% in the same period.


While stocks like a weaker Dollar it is not sustainable long-term and the Dollar collapse will continue. A decline in the Dollar and easy money means money can continue to flow into assets like stocks and commodities. Not only are small-cap stocks outperforming, but the entire move is also supported by a weaker dollar. “It’s just paper money, it’s worth nothing”, BItcoin/crypto advocates say about the US dollar and all other similar currencies – and they’re 100% right.
In this case, a weaker dollar is supporting US exports, commodities, and inflation. Since then, the US dollar has lost most of its value, although that process already had been underway since at least 1913. It appears Oracle is getting more bang for their dollar with repos today than at any point in the last 20 years. From the ashes, a crypto-style Dollar will emerge that neither the government nor a Federal Reserve can print without repercussions. *Note: All dollar amounts are presented in Canadian dollars, reflecting Aritzia’s reporting currency.
That’s why it is no surprise that dollar weakness has helped the current rotation so much. less The U.S. Dollar (DX) decline continues. The people will demand it after the Dollar collapse. The U.S. Dollar is at multi-year lows and headed lower.


Over the longer term, gold is likely to continue rallying due to investors shifting capital into risk-off assets like gold. Your gold bar or gold coin existed long before any computer or networking technology. The U.S. cut its final ($35 per ounce of gold) link to gold (GLD) on August 15, 1971. 17, 2020 2:36 PM ET|| About: Fiore Gold Ltd. (FIOGF)by: SA TranscriptsThe following slide deck was published by Fiore Gold Ltd. in conjunction with their 2020 Q4 earnings call.
While November may seem like a distant memory to most, for gold investors we must remember the heightened levels of volatility seen during that month. With bitcoin’s surge in the last two days, the ratio between bitcoin and gold is also making a run for its record high back in late 2017. Simply said, the start of the year tends to be the most bullish for gold investors. Source: TradingView Over the last two weeks, we have seen gold break through key resistance which had been in place since October, of around $1,850 per ounce.
As for gold, I expect its price in future years to reflect the increase in the quantity of government paper money. While the note has performed most recently as oil recovers, given its assorted costs and risks, other options to build long leveraged exposure to black gold are advisable. GLD is a gold ETF which is most suited for active investors and traders looking for financial exposure to the commodity. Per DailyFX: This suggests that redemptions have outpaced subscriptions, reflecting weaker demand for gold among ETF investors.
Silver mining first occurred here in the early 1900s and gold mining began in the early 1980s.
On that note, we reiterate our long-term price target of $3000 in gold (or $300 in GLD), which we expect to be reached by 2022. Gold is likely to rally over the next 1-2 months as momentum has shifted to the bullish side and seasonality factors come into play. 17, 2020 1:52 PM ET|| Includes: BRK.A, JETS, PFE, QABSYby: Frank HolmesFrank Holmes Growth At Reasonable Price, Contrarian, gold & precious metals, CommoditiesU.S. Production ceased despite the price of gold having risen from $850/oz in Dec 2008 to $1200/oz by March 2015 and Allied Nevada entered bankruptcy.
With the easy to mine and easy to process oxides depleted, Allied Nevada and now Hycroft Mining have been trying to liberate the gold out of the sulfide resource. Source: TradingView For gold investors, it is important to pay attention to the outright level of the VIX. Leaching gold and silver from oxides is relatively straightforward as far as mining goes.


This was related to a drop in oil prices (an oil price bubble popped in 2008, and West Texas Intermediate futures prices briefly went negative this year). I continue to cover oil extensively and invite you to review my alternative 2x long leveraged oil play (GUSH) here. This means that the increased buying has not actually followed through in the physical market, which is actually a good thing for oil prices going forward. This has legs, in our view, and will likely keep the oil market well supported so long as demand holds up in the East.
(Some believers in Peak Oil argue that energy prices will spiral out of control, but I believe that overstates what will happen to measured prices.) It is noteworthy that OPEC’s lower demand projection comes right after OPEC+ agreed to increase oil production by 500,000 bpd in January 2021. Author’s Publications Follow Two prominent organizations released their updated oil demand forecasts for what remains of this year and for 2021.
Since the recent buying is what’s kept oil prices well supported, all we really need to figure out then is whether or not the volume is sustainable. Two prominent organizations released their updated oil demand forecasts for what remains of this year and for 2021. We know that the countries selling oil to Asian countries are an advanced indicator of how much demand there really is. The cartel now anticipates that oil demand in 2021 will grow by only 5.9 million bpd, which is a decline of 350,000 bpd from its previous forecast.
It displays leveraged long exposure to price swings in big oil and charges at the top-end of fund pricing (0.95%) for the privilege. Both the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) slashed their oil demand projections. Recovering demand coupled with limited supplies has Asian buyers bidding up the oil. The battle between the East and West is clearly illustrating whose winning in the battle for oil market dominance.
OPEC’s current president, Algerian Energy Minister Abdelmajid Attar said: “Despite the positive signs and a significant improvement in oil prices, I think we should be very cautious.
With a plethora of oil related offerings on global securities markets, the exchange traded note is increasingly a thing of the past. Therefore, BMO MicroSectors U.S. Big Oil Index 3x leveraged ETN remains purely within the domain of near-term trading and solely for less risk adverse traders. Saudi Arabia will likely argue against lifting oil production by another 500,000 bpd in February. Yet with oil on the mend, along with gradual re-opening of economies, investors are now starting to look for tradable assets to generate active returns.

United States

This can be seen when you compare NUSI to a mostly non-managed ETF like the Global-X Nasdaq-100 Covered Call fund (QYLD), $22.80 current market price. QYLD sells 100% Call options against its Nasdaq-100 portfolio just like NUSI but doesn’t use a collar option strategy by buying Puts as well. The figure above shows the 5-year, 5-year breakeven inflation rate (I used the series calculated by the Fed) compared to the 10-year moving average of the CPI inflation rate.
Increasing population of those consuming breakfast cereal in the US is expected to add impetus to Kellogg’s fortunes in the long term. Western countries like the US and Germany continue to suffer from increasing COVID case counts resulting in renewed government lockdowns. If the company, as many observers predict, acquires renewable power generators in the US, which are thought by the markets to be lucrative, the shares will rise. Remember, it is net profit or earnings per share which is the chief metric which moves respective share prices on Wall Street.
With vaccinations progressing in the US we could see millions vaccinated globally before the end of the year. The Census Bureau’s mid-month population estimates show substantial growth in the US population since 1959. The figure above shows the 10-year breakeven inflation rate (based on the Fed H.15 report). A dichotomy has been created as companies like Marriot International (NASDAQ:MAR) and Hilton Worldwide Holdings (NYSE:HLT) have significantly closed the gap with their previous highs.
This morning, the Philadelphia Fed released its monthly reading on the region’s manufacturing sector. 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. Enter Cara Therapeutics (NASDAQ:CARA), a pharmaceutical company that has three key drugs in the making. It is an EV play where the newly combined company is going to list on the NASDAQ under the ticker ARVL.
Or use all the proceeds to buy new investments in the US? While Kellogg’s cereal business thrives in North America, particularly the US, sale of snacks has strengthened in other countries. The same is also true for the US market. He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post. Tesco supermarket is set to launch the vegan product in the US in 2021, owing to the massive reception in Europe.


In this segment I discussed the EU’s “Digital Service Act” proposal and the onerous penalties/responsibilities that may be coming down the pike for GOOGL, FB, AMZN, AAPL, and TWTR. Looking ahead, the company is preparing to file a BLA in the U.S. and an MAA in the EU for OTL-103 in WAS in 2021.