Daily Close | Forex, Metals, Oil, Agriculture July 23, 2020

General Comments: Cotton closed lower on news that the US has asked China to close its consulate in Houston. Mr. Scoville is a futures market analyst specializing in grains, softs, rice, oilseeds, and tropical products such as coffee and sugar. USDA said that net Upland Cotton export sales were -13,100 bales this year and 10,900 bales next year. “He stressed the importance of farmers, and increased Chinese purchases of soybeans and wheat in the electoral outcome.

If market volatility snaps back and risk aversion takes hold, however, there may be potential for the US Dollar to rebound from its sharp slide. US Dollar bulls have been in a world of pain this month. More importantly, they will help underpin monetary union.” “In terms of market perceptions about the long-term viability of the euro, this deal is a game-changer. Ultimately, many believe, myself included, that the EU needs to become a fiscal union in order for the Euro to continue to exist…and thrive. The Fed has managed to bring about this big recovery rally as a result of their programs, and with it they weakened the dollar. The dollar cost began to rise right after the announcement. On this basis alone, the euro is more attractive than the US dollar. However, if the Euro is to be saved, Europe must move to create a fiscal union. Source: Bloomberg Pushing the Dollar Index to its lowest of the year… In fact it may be argued that entire unlimited QE and M1 money supply expansion game has had one key net effect: Kill the dollar.

As such, worse-than-expected PMI readings may deliver a notable blow to risk appetite and a meaningful boost to the US Dollar. Early in June, one Euro cost $1.1300. less We’ve talked at length this week about why investors are falling hard for the euro. But now the dollar has hit its key rising trend, a trend in place since 2011. In addition to vanishing demand for safe-haven currencies, US Dollar selling pressure has largely corresponded EUR/USD price action surging to fresh 2020 highs. This morning it cost almost $1.1600 to purchase one dollar. Good luck with that as the US Dollar has just approached a key level. Tracked by the DXY Index, the US Dollar has swooned nearly 3% since the end of June. For all of these reasons, unless there’s unambiguously negative euro news, the pair’s uptrend should remain intact. The world will be better off with a strong Euro, backed up by a strong EU fiscal union.

Washington won’t change its color scheme: It’s still planning on using the burgundy and gold that fans know and love. Investing in silver has become all the rage, and following a huge silver price move, traders want to know ‘should I buy silver now? Robinhood SLV ETF traders are popping up, and buying silver and related silver stocks are seeing a huge influx of volume. Gold may just blast higher (or collapse) but fundamentals suggest higher, perhaps after some consolidation. In this video I cover: Silver ETF (SLV), Pan American Silver (PAAS), Hecla Mining (HL), Coeur Mining (CDE). But silver did notably did not after its recent surge… Bitcoin legged higher again on the day… The silver weakness today stabilized the recent plunge in the gold/silver ratio… Read the view Silver rally may have a bright, green future The white metal s price is up more than gold’s so far this year. At 14 percent, gold and other precious metals was up for the second straight year.

Silver s industrial uses mean it shines when lockdowns lift, but there s a political dimension too. In short, the Fed is blowing bubbles, many believe on purpose, and gold has responded to the stress. On their helmets, players will see the team’s former logo replaced with their number in gold, ESPN reported.

But times right now are challenging and an increase in oil well yields, for example, is hardly a good reason to capture associated gas instead of flaring it. From an outright perspective, natural gas inventories built, so why did price respond so strongly to the upside? Following this announcement, the price of natural gas rocketed higher. A lot of oil producers, especially in the United States, simply cannot afford to stop flaring, at least on their own. What this means is that if you are holding natural gas futures (especially the front contract), the return you earn is actually going to be subject to two things. In other words, the overall demand case for natural gas is taking several strong hits at the moment. USD/CAD dropped to a one month low as the loonie shrugged off lower oil prices. Considering the margin requirements and volatility associated with even a single natural gas futures contract, an investment in UNG certainly can make economic sense for many.

After all, it is the largest single producer of oil in the United States. For natural gas traders, today’s inventory figure was very bullish. In and of itself, there is no problem with this methodology – it’s a valid way of tracking natural gas through time. If you were monitoring the news today, then you likely noticed that natural gas inventories rose by 37 BCF. The first source of return is the actual movements in the general prices of natural gas. The key answer to this question is contained in the fact that natural gas inventories are cyclical. Every year, the oil and gas industry flares some 140 billion cubic meters of natural gas. Investors have always had the swing vote in oil and gas. Today’s natural gas inventory report was slightly above average and yet the market responded with strong buying activity. For this reason, I must temper my bullishness in natural gas as it relates to UNG. One of these things is the fact that demand for natural gas has been suffering due to a slowdown in business activity from the coronavirus.

Source: Bloomberg Oil prices fell on the day as stocks sank with WTI findingh brief support at $41..

News > World > Americas > US politics Close President Trump visited a section of border barrier in Arizona, but experts see ‘very little progress’ on what he promised. After the pictures were published, people pointed out that Ms Trump’s post might have violated an ethics rule that states that government employees must not endorse any product. A new ad by a Republican campaign group has criticised president Donald Trump for his comments about Ghislaine Maxwell earlier this week, where he wished her well. There’s no question that the Eurozone data will be better but we could see the first signs of a slower recovery in the US. While last year the concern was over the inversion of the yield curve, after the Fed cut rates everyone simply forgot about that and moved on. President Donald Trump’s re-election campaign has reignited a controversy surrounding Goya Foods by releasing a group of Spanish-language ads that reference a boycott against the brand.

Economic improvement in the US is in doubt as Coronavirus cases surged higher in states that had reopened. Analysts at the Brookings Institution concluded Mr Trump has made “very little progress” on the coast-to-coast border barrier he promised as a candidate in 2016. Mr Trump told reporters earlier as he departed the White House that his administration has constructed over 200 miles of structure along the US-Mexico border since he took office. I would print Trump’s exact words but the government’s prepublication review process has decided otherwise.” VoteVets, a group of veterans opposed to Mr Trump, have been especially critical of the president since the story broke. In a statement sent to The Hill, Erin Perrine, director of press communications for the Trump campaign, criticised the new attack ad. On the opposite end, though, were several reports from major companies like Twitter and Whirlpool showing that their businesses held up better during the spring than Wall Street expected.

With stocks weak all day, and accelerating to the downside in the afternoon, some were wondering when Jerome “Jay” Powell would answer Steve Mnuchin’s phonecall. While the Fed can certainly control the short end of the curve, long-term duration yields are generally set by growth and inflation expectations. Mr Deere did not indicate whether or not Mr Trump raised the issue of hacking, but said the leaders discussed preparations for upcoming weapons discussions involving China. The APM Research Lab released a report earlier this month that found black Americans have suffered 24.3 per cent of the known Covid-19 deaths in the US. “The Trump administration has not been successful in getting Congress to appropriate the sums that Trump envisions the wall would require. While they make up 62.2 per cent of the US population, their share of the Covid-19 death total is just 51.7 per cent. News > World > Americas > US politics Close Infectious disease expert Anthony Fauci is one of the leading voices in the US on the coronavirus pandemic.

Beijing later claimed that its embassy in Washington and people who work there had been threatened. Beijing, however, is betting the former British colony will grow into a bigger and more lucrative capital-raising hub for Chinese businesses.

Ms. Merkel stated, “Europe must act together, the nation state alone has no future. Although not all of her advisors bought onto the program, Ms. Merkel did. Mr. Scholz apparently developed a plan within his own party and then presented the proposal to Ms. Merkel. But, Mr. Macron could never convince Ms. Merkel. This spring Ms. Merkel became a driving force behind the deal. In February, Mr. Macron began to work. “ For the first time, the EU will be able to run a federal deficit to respond to an economic shock. In April, Mr. Macron, continued to reach out, now bringing in an old friend, Olaf Scholz, German’s finance minister, who he knew supported eurozone fiscal integration. On May 18, Ms. Merkel and Mr. Macron held a joint video press conference. With Italy reeling from the coronavirus, Mr. Macron started working on the people around Ms. Merkel. In March, there were signs that Ms. Merkel was becoming more receptive to the idea of a common fiscal approach to working with countries within the EU.

Still, the editorial goes on in just a few months the EU has embraced emergency fiscal transfers.