Daily Close | Forex, Metals, Oil, Agriculture December 21, 2020



Whereas people generally want to produce, save, conserve, accumulate capital, and live better, force pushes them to destroy, waste, eat the seed corn, and become impoverished. We also saw a big move from unknown destinations to China for soybeans to a tune of 900,000 metric tons, and that is very big. Thursday’s Export Sales had a bullish surprise for corn and soybeans. In the overnight electronic session, the March corn is currently trading at 435 ½ which is 2 cents lower.
The reports showed a significant drop in production of US Cotton and much reduced US ending stocks levels. Minneapolis Spring Wheat contracts closed higher.


The Invesco Currency Shares Euro Currency Trust (NYSEARCA:FXE) moves higher and lower based on the euro’s value against the US dollar. The Invesco Currency Shares Euro Currency Trust is a product that moves higher and lower with the euro’s value against the US dollar. However, the euro could be a far better choice than the dollar as the trend is your friend and a shift towards globalism in the US favors the euro. While President Trump viewed a weaker dollar as a tool in trade negotiations, the Biden administration is likely to adopt the strong dollar policies of the past.
Since then, the euro’s technical trend has been higher, with the European currency making higher lows and higher highs against the greenback. The euro strengthened against the US dollar, moving from $1.0671 in March to $1.2289 at the end of last week, a move of 15.16%. Meanwhile, the euro currency fell to just above parity against the dollar in late 2016. As we move into 2021, the prospects for the euro’s value against the US dollar are looking bullish.
Meanwhile, the dollar and the euro are the reserve currencies worldwide. We have seen the US dollar, the world’s reserve currency, fall from its highest level since 2002 in March to its lowest since 2018 in December. Among these factors are the VIX index, a measure of global risk appetite, the U.S. Treasury bond yield, and the foreign exchange value of the dollar. So it’s no surprise to see sterling fall sharply against the US dollar and euro.
My goal to buy TPVG is somewhere around the ten dollar level, and I think a return to a nine percent yield thereafter would be realistic. Rates have risen, the US dollar has weakened, oil prices are at 7-week highs,1 high yield corporate bond spreads have tightened. When the extent of the pandemic became clear, the VIX measure rose while the dollar initially appreciated as investors sought a “safe harbor.” This is a shortened trading week but a variety of factors could influence how the dollar trades.
The US Dollar put in a quick flicker of strength, filling the gap from last week’s open. Based on the latest reports, the package will include: The dollar amounts are, clearly, smaller this time around. The dollar started the day strong but gave up part of its gains as well. Brexit and coronavirus uncertainty should benefit the US dollar as investors seek safe-haven assets.


The ascent of gold and Bitcoin is a commentary that the full faith and credit of countries that issue legal tender is declining and on credit watch. In 2019 and 2020, virtually all of the legal tender of countries worldwide fell to new lows against two competitors; gold and most recently Bitcoin. I continue to view Spotify as the gold standard in the music streaming space, and would recommend caution to investors on Tencent Music. The silver lining is that specialists in the field have expressed optimism that recently developed vaccines will be effective against this new strain as well.
The moves against gold, Bitcoin, and other hard assets provide some insight.
It produces a variety of products, including containerboard, paperboard, steel drums, and bulk containers. They are not exchangeable for gold and silver as they were in the past.


An eventual return to normal export volumes and normal natural gas prices in the range of €20-25 /MWH would go a long way towards improving Gazprom’s shares. With natural gas prices moving in the right direction and the end of the pandemic in sight, Gazprom’s beaten-up shares appear quite appealing. However, with the COVID-19 pandemic, oil demand is weak and will probably affect oil prices in the next few months. Source: Bloomberg Over the past few months, European natural gas prices as measured by the Netherlands TTF have rebounded strongly, surpassing the January 2020 levels.
If oil prices and the vaccine and stimulus hopes keep risk appetite up, midstream should resume the upward trajectory. It was the resulting 74% decline in the price of natural gas between Jan 2020 and May 2020 which was an even more important factor against Gazprom’s share price. With the expected momentum of oil prices in 2021, the company could present a great opportunity even if it has already gone up significantly.
The rig count was up in the U.S. this week, but oil prices can’t be stopped right now. This facility would convert Gazprom’s natural gas into a low-carbon gas or even hydrogen. Natural gas was up a bit this week, probably helped by the winter storm that coated the streets of my neighborhood with a foot of snow. The risk factors are limited to the oil prices here. If oil prices turn bearish in the next few weeks, we may experience a breakdown and a retest of the $1.25-1.30.
Demand expectation for natural gas in Europe have also started moving up with multiple COVID vaccines becoming available, thereby putting the epidemic in the endgame. However, it will depend mainly on oil prices. Perenco Oil and Gas is the operator and owns 60%. I have been very critical about the management’s lack of concrete moves to enhance its oil business in the past. Source: Company Presentation The American oil producer VAALCO Energy (EGY) released a couple of major news after releasing the third-quarter results in November that I covered on Seeking Alpha.
TRGP, ONEOK (NYSE:OKE), and Cheniere Energy (NYSEMKT:LNG) were in the top 5 last week and lagged this week. Cheap gasoline along with cash-in-pocket boosted willingness to spend more per car.

United States

I think the current COVID situation is going to make the final two week sales push difficult in a lot of important geographies like the US and the UK. On a dollarized basis this translates to $1.11 billion in revenue, missing Wall Street’s consensus of $1.10 billion by roughly one percent. The one sector that will continue with strong sales is electronic commerce such as Amazon (NASDAQ:AMZN). Another possible reason for a weaker Q4 could be from would-be buyers waiting to see if the Biden administration restores an EV tax credit for Tesla in the US.
The company sells through retail channels such as grocery stores as well as e-commerce channels such as Amazon (NASDAQ:AMZN).
The snacking market is insanely competitive, and there are many players with significant capital and resources such as Hostess Brands (NASDAQ:TWNK). At the same time, the Fed’s lowering of the federal funds rate caused investors to look elsewhere for yields. Treasury Secretary Steven Mnuchin said on CNBC’s “Squawk Box” that checks could be sent out as early as next week. On January 20, 2021, President-elect Joe Biden will become the forty-sixth president of the United States, replacing President Trump after one term in office.
You make good points about the US consumer, housing market and up-and-coming millennial cohort. What is likely more significant now is first the Fed is blowing asset bubbles through the creation of excess bank reserves. A return of close ties with the US may only serve to strengthen its economic position. It reached a low of $1.03675 as the Trump administration took over from an eight-year stretch when President-elect Biden served as Vice President.
Europe is one of the US’s strongest allies. Cosmetics company Boscia announced in October that it was selling its products in Walgreens (NASDAQ:WBA). Warehouse clubs (such as Costco (NASDAQ:COST) and Sam’s (NYSE:WMT)) will also return to normal. He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post. Oasis Midstream Partners (NASDAQ:OMP) went from top 5 to near the bottom.
That is how compliments other services that focus on the bottom-ups security analysis of REITs, CEFs, ETFs, dividend-paying stocks and other securities. 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.


Investors have to bet on whether the U.S. market offers more potential going forward or whether the new Tilray is the future with access to the EU. The swoon also coincided with broader stock-index declines as investors grew jittery about worsening coronavirus cases in the U.K and stricter lockdown measures. Image Source: Pixabay Over the weekend Prime Minister Boris Johnson said this new strain is 70% more infectious. Another Brexit deadline has been missed as well, raising the risk of a no-deal Brexit and further losses for the currency.