Daily Close | Forex, Metals, Oil, Agriculture May 21, 2021



Relatively ample global wheat supplies meant prices for the grain haven’t kept up with corn’s rally. A blast of rains this week in U.S. wheat-growing regions also prompted heavy declines in wheat futures. He further explained the alfalfa and wheat were almost dying on the vine so to speak with lack of moisture. In the overnight electronic session, the July corn is currently trading at 657 ¼ which is 7 ¼ cents lower. This fundamentally could even further rallies in the corn market.
China bought another 48.0 million bushels of corn yesterday.


Meanwhile, Goldman projects commodities to rally another 13.5% over the next six months on a worldwide reversal of coronavirus curbs, lower interest rates and a weaker dollar. This is because commodities are often viewed as a hedge against inflation and a weaker dollar. A weaker greenback added to the strength as it makes dollar-denominated assets attractive for foreign investors, raising the appeal for commodities. Treasury yields were little changed and the dollar gained.
Reports elsewhere showed the euro-area recovery also is increasingly being supported by rebounding services as factories confront a supply squeeze. United made a $30 million investment in alternative-fuels developer Fulcrum Bioenergy Inc. in 2015 and announced a multimillion-dollar investment in Occidental Petroleum Corp. s 1PointFive carbon capture partnership.


Mid-tier gold miners produce between 300k to 1m ounces of gold annually, more than smaller juniors but less than larger majors. These gold miners just reported their latest quarterly results, which revealed strong fundamentals supporting much-higher stock prices. Popular greed mounts the longer gold stocks climb on balance, motivating traders to increasingly shift capital into smaller individual miners. But the mid-tier gold miners actually enjoyed very strong operating and financial performances, proving their weak stock prices weren’t justified.
It has evolved to be dominated by mid-tiers, miners yielding quarterly gold outputs of 75k to 250k ounces. For 20 quarters in a row now, I’ve painstakingly analyzed the mid-tier gold miners’ latest quarterly results right after they are reported. The smaller mid-tier and junior gold miners are in this sector’s sweet spot for potential gains. Next comes these gold miners’ Q1’21 production in ounces, along with their year-over-year changes from the comparable Q1’20.
They command a major 63.2% of GDXJ’s total weighting, and among these elite ranks are some of the best-performing gold miners. Their unique mix of sizable diversified gold production, material output-growth potential, and smaller market capitalizations is ideal for outsized gains. Ironically the leading mid-tier gold-stock benchmark and trading vehicle is the misleadingly named GDXJ VanEck Vectors Junior Gold Miners ETF. South Africa’s Sibanye-Stillwater was also removed, but not because it mined 249.4k ounces of gold last quarter.
Mid-tiers are far less risky than juniors and amplify gold’s uplegs much more than majors. After are the per-ounce costs of wresting that gold from the bowels of the earth, both cash costs and all-in sustaining costs. While historically a gold miner, SBSW has grown into the world’s largest primary platinum-group-metals producer through big acquisitions. Producing 368.3k ounces of gold in Q1’21, this new company is also a GDX exclusive.
Gold also ranged a bit, finishing largely unchanged around the 1880 resistance.
The best-performing subset of gold stocks is gathering upside momentum in a young upleg. Their lengthy streak of double-digit earnings growth grew on still-high prevailing gold prices. They are the best gold stocks for traders to own.


If PMI data supports such a hypothesis, sentiment-sensitive crude oil may suffer amid broader risk aversion. Additionally, crude oil prices rebounded from record lows reached during the pandemic on accelerating demand and tight supply. Traders are mulling the prospect of a thaw between Washington and Tehran that might see sanctions on Iranian crude exports eased as part of a new denuclearization deal. Iran has the world’s fourth-largest oil reserves.

United States

less Trade between China and the US continued an upward trend in the past four months, official data showed, highlighting inseparable economic relations between the two countries. China’s exports to the US rose 49.3 percent while imports gained 53.3 percent, and the trade surplus with the US was 653.89 billion yuan, an increase of 47 percent. Demand at the Fed’s reverse repo facility surged to $369 billion on Friday, with 52 participants taking it to the highest in almost four years.
The blistering pace of economic growth in both counties over recent months is expected to continue, with the UK accelerating further while the US cools just a bit. Jonathan Bernstein The Fed could start talking about tapering later this year. less Shares of electric vehicle makers (Nasdaq: RIDE), (Nasdaq: TSLA), and (NYSE: NIO) have all rallied, but are still below resistance levels. Coinbase Global (NASDAQ:COIN) closed Wednesday at a record low after a wild trading session that saw the price of Bitcoin swing by about $10,000.
The tech-heavy Nasdaq 100 was lower, while the Dow Jones Industrial Average gained as investors shifts from growth to value shares. The Bank of England and the Fed can be envisioned speeding up stimulus withdrawal, however. He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post. The one place that is not the case is the US.


Zev Chafets The U.K. balking at a trade deal with Australia to protect local farmers would defeat the purpose of Brexit. Eurozone figures passed by with little fanfare considering their minimal implications for ultra-dovish ECB policy. On the Ethanol front, the EU market is transitioning to post-lockdown normality.