Daily Close | Forex, Metals, Oil, Agriculture March 10, 2021



The US stock market has been generally firm to help support ideas of a better economy here and potentially increased demand for Cotton products. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. The demand for US Cotton has been strong even with the Coronavirus. Trends in Cotton are down with objectives of 8360 and 8000 May.


The US Dollar has started to firm recently and could be hurting demand.


Prices of Texas oil were going to be included in assessments of Brent crude, the benchmark price underpinning the world’s most important commodity market, starting in July 2022. European refiners have shifted to becoming large buyers of U.S. crude oil since the shale boom revived the American energy industry, importing more than a million barrels a day. Published daily by Platts, it reflects the price of physical crude oil in Europe’s North Sea. Dated Brent is a pivotal gauge used to price the majority of traded barrels of oil around the world.
The gasoline index continued to increase, rising 6.4 percent in February and accounting for over half of the seasonally adjusted increase in the all items index. The benchmark has faced a major problem: For years, production of Brent and four other grades of crude in the North Sea has declined. The electricity and natural gas indexes also increased, and the energy index rose 3.9 percent over the month. The Labor Department on Wednesday reported that consumer prices rose 0.4% in February from January, driven by rising gasoline prices.
less The CPI jumped 0.4% in February, led by gasoline.

United States

Finally, the bond market is signaling that the Fed is capable of keeping the inflation rate within its set target of 2%. The Fed has indicated that it will tolerate inflation slightly above the target rate, if necessary, to reach full employment. Nominal bond yields in the US, Europe, and even in Japan have jumped significantly and many are anticipating this upward adjustment is not yet completed. It was unusual that during the sharp decline of the Nasdaq since February 16, tens of billions of dollars flowed into the market.
Last quarter, it released this patient data for the US and already has five early adopter customers. Year-over-year Core CPI (ex Food and Energy) came in at 1.28%, down from 1.41% the previous month and below the Fed’s 2% PCE target. The recent downdraft and yesterday’s rebound in the S&P 500 (SPX) and especially the Nasdaq 100 (NDX) indices had some of the hallmarks of those days. Bert Dohmen’s analysis often goes totally contrary to accepted “Wall Street wisdom.” He is the original Fed Watcher.
less “Buy the dip” is now the rallying cry on Wall Street. He considers Fed policy the most important fundamental factor. 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. Wall Street didn’t declare the bear market until June 2008. Bert Dohmen has been called “a leading Fed Watcher” by the Wall Street Journal.