Daily Close | Forex, Metals, Oil, Agriculture January 13, 2021

Agriculture

This year’s final corn yield was cut by 3.8 bu to 172 bu/acre which decreased the US crop size by 325 million bu to 14.182 billion bu. Instead of modest declines in corn and soybean outputs, corn’s final yield and crop size was dropped sharply and below the trade’s lowest estimate. The US January soybean crop was lower by 35 million bu to 4.135 billion bu. bu also projects a 70 million fall residual similar to the past two years despite soybean exports being up 81% over 2019’s fall shipments.
Also, this year’s US winter wheat seedings were 462,000 acres above the trade’s average at 32 million acres and the first increase in US plantings since the 2013 report. Despite S. America’s dry weather conditions, the USDA only decreased Argentina’s crop by 2 mmt and kept Brazil’s outlook unchanged. 87990cbe856818d5eddac44c7b1cdeb8 Advertisement Show Conversation Hide Conversation Sponsored Offers Cotton closed higher and near the highs of the day in response to the USDA reports.
Trends in Cotton are up with objectives of 8270 and 8540 March.

Currencies

The closely watched 5-year 5-year forward inflation swap rate for the euro area rose above 1.35% Tuesday, the highest in over a year. Fewer dollars printed mean higher yields and a stronger dollar. The dollar is gaining ground as Treasury yields stabilize from Tuesday’s fall. If they mention tapering – even by denying it – the dollar has room to advance.

Metals

Today’s U.S. consumer price data showed weak price pressures, which will depress gold demand as a hedge against inflation. Global economic data was bearish for gold with the Eurozone November industrial production rising 2.5% month-to-month, which was stronger than expected and the largest increase in four months. Gold and silver this morning have been rising as worries about the pandemic hurt stocks and help safe-haven demand for precious metals. Tuesday the US reported a new record for COVID-19 deaths and the Fed made dovish comments, which increased demand for gold.
Volatility in gold is increasing as we deal with trying to resolve the political, health, and economic crises. Unrest will continue to cause extreme volatility in the markets, including gold. His statements helped boost gold prices.

United States

Despite headwinds faced in the early months of the pandemic, demand for high yield has recovered since the Fed’s rate cut and reopening of the economy. less CityLab Daily The rioter next door: For many Americans everywhere, watching a mob of Trump supporters storm the U.S. Capitol last week was alarming enough. Two weeks before the Fed announces its rate decision, it publishes a document consisting of anecdotal reports from its regions. 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.
There are three keys to the next move: The US currency dived on Tuesday after investors rushed to buy ten-year Treasuries. The Capital Spectator has been quoted by a range of news organizations, including The Wall Street Journal, Reuters and others. While the Fed intends to keep interest rate at near-zero through 2023, high-yield bonds can be a good bet for income-seeking investors in 2021.
The US weather outlook calls for drier and colder weather for Texas after some big snows over the weekend. The two permanent voters on the bank’s committee may provide guidance about the Fed’s bond-buying plans. The threat is rising, according to the latest update of the ADS Index, a real-time tracker of business conditions published by the Philadelphia Fed. “With the onset of vaccines, people are upgrading their growth outlooks,” said UBS rates strategist Rohan Khanna.
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.
Trump s executive order on protecting federal monuments spelled out harsh sentences for Black Lives Matter protesters. As mentioned earlier, the US is ahead of Europe in vaccinations, and that is unlikely to change anytime soon. Also in focus is the latest round of inflation data, which was with Wall Street’s expectations. He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post.
State Capitols Brace for Right-Wing Violence The FBI warns that pro-Trump protests are planned at U.S. statehouses before the presidential inauguration. less Is the US economy at risk of a double-dip recession? The northern & western areas of the US Bean Belt posted lower yields. Year-over-year Core CPI (ex Food and Energy) came in at 1.62%, down from 1.65% the previous month and below the Fed’s 2% PCE target.

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