Daily Close | Forex, Metals, Oil, Agriculture July 16, 2021

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Agriculture

Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. USDA showed sharply lower Spring Wheat production and much lower ending stocks estimates for All Wheat in its Monday reports. World prices are expected to bottom soon and start to move higher, supporting Wheat futures markets in the US. White Winter Wheat production is also being hurt as both have been impacted by drought and heat this year.
Yield reports have generally been good in Winter Wheat areas but there have been mixed results reported in some Great Plains states. Or crust and sugar over— like a syrupy sweet?

Currencies

A further extension of the temporary swap lines will help sustain improvements in global U.S. dollar funding markets by serving as an important liquidity backstop. Keep in mind, however, that ILF’s performance, in part, depends on currency fluctuations vis-à-vis the U.S. dollar. Exports to Iran have been impacted due to payment related issues.Ever since the US imposed sanctions on Iran, India could not engage in dollar-denominated trade with the country.
By Haris Anwar/Investing.com – Jul 15, 2021 8 U.S. Dollar Drops, But Why Did NZD Rally And Not CAD? dollar.

Metals

Their panicked exodus quickly exhausted itself as expected, leaving gold’s near-term outlook far more bullish with the vast majority of potential gold futures selling spent. Then the latest FOMC meeting spawned a sharp gold plummeting, which the gold stocks leveraged like usual. It individually indexes the gold stocks’ summer performances during all modern gold-bull-market years to May’s final close, rendering them all in perfectly comparable percentage terms.
The major gold stocks had recently finished a big 30.5% correction in GDX terms that bottomed in early March. less The gold miners’ stocks are still grinding sideways after last month’s Fed-rate-hike scare. The gold stocks were consolidating high, digesting sharp young-upleg gains, just a month ago. Gold futures snapped their three-day win streak today, though the commodity did log its fourth-straight weekly win. That’s why sector psychology has cratered, and traders have either abandoned the gold miners or remain too wary or scared to move more capital in.
Gold stocks consolidated high after that, digesting their gains. But that gold drop had an ugly impact on gold-stock psychology, unleashing widespread bearishness still festering. That made for the equivalent of 89.7 metric tons of gold selling, far too much too fast to absorb. Gold stocks only plummeted in sharper early-June selloffs in 2006 and 2009. So the leading GDX VanEck Vectors Gold Miners ETF collapsed 9.2% in that same span.
August-dated gold fell $14, or 0.8%, to settle at $1,815 an ounce today, but managed a 0.2% gain for the week. Gold stocks’ hawkish-Fed-dots swoon was super-anomalous. Both the HUI and GDX are dominated by the same major gold miners. Brazilian miner , financial services groups (NYSE:ITUB) and (NYSE:BBD), energy group (NYSE:PBR) and regional stock exchange (SA:B3SA3) comprise the top names in the roster. The leading gold-stock index was just slammed back down to the support of its secular valuation uptrend, portending a big mean reversion higher.
Among the leading names in the fund are (NYSE:TSM), South Korean chip groups (OTC:SSNLF) and (KS:000660)Brazilian miner (NYSE:VALE) and South African internet and technology business (OTC:NPSNY).
That whole episode was a crazy anomaly, that Fed gold-futures purge wasn’t sustainable given specs’ positioning leading into it.

Oil

: the OPEC+ sword of Damocles still threatens another oil price collapse the instant that large publics announce capital expenditure increases. Well, it’s easy to figure out an energy crisis (or oil way above $100) will be the outcome. August-dated crude rose 16 cents, or 0.2%, to settle at $71.81 a barrel.

United States

less Stocks reversed earlier gains brought on by strong data and mixed earnings reports, as worse-than-expected inflation findings weighed on Wall Street. But top Fed officials’ individual projections of future federal-funds-rate levels, which the Fed chair himself warned to ignore, were slightly more hawkish than expected. Near the top of the Nasdaq, today islast seen up 7.3% to trade at $17.15, though it’s unclear what the reason for today’s surge is.
Wall Street will be busy analyzing results in the next one month or so as market participants have high expectations for second-quarter earnings. Just a third of these guys thought the Fed might need two quarter-point rate hikes way out into year-end 2023. Who cares, right? However, higher inflation did not affect economic activities as the Fed repeatedly reiterated that the inflation is transitory. 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.
$61.92 $44.50-$63.74 1.35% 0.25% per year (NASDAQ:EMXC) provides exposure to large- and mid-capitalization emerging market companies, excluding China-based businesses. The Fed didn’t do anything, keeping its hyper-easy zero-interest-rate policy and $120b of monthly quantitative-easing money printing in place indefinitely. 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.
He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post. There was definitely no need for that this summer before that hawkish-Fed-dots scare. Meanwhile, near the bottom of the Nasdaq is , down 43.5% to trade at $14.04 this afternoon. Prior to the Trump administration, corporate taxes were at the 35% level. You will be charged $ + tax (if applicable) for The Wall Street Journal.
Unheard of in the days when all Wall Street could say was “Buy”.

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