Daily Close | Forex, Metals, Oil, Agriculture November 06, 2020



On the corn front, great Export Sales numbers in corn and surprisingly a more excellent number on sorghum. USDA said yesterday that net Upland Cotton export sales were 115,600 bales this year and 55,700 bales next year. In the overnight electronic session, the December corn is currently trading at 409 ¾ which is up a ½ of a cent. Mexico is now experiencing dry weather but the condition is still called good for crops. Funds gladly stepped in enjoying the ride purchasing 7,000 corn.
(Soybean prices from USDA) (Corn prices from USDA) Well no. The return of the Coronavirus threatens demand potential for Cotton at home and around the world. less General Comments: Cotton closed slightly higher in consolidation trading.


The ICE U.S. Dollar Index, which measures the greenback against a basket of currencies, has declined about 1.9% this week, on track for its worst week since March. Bitcoin surged more than 13% against the dollar this week and is trading near its highest value in three years, according to CoinDesk. A weaker dollar was driving the gains, as well as investors’ bets that interest rates will stay low for the foreseeable future. In other words, for each dollar of economic growth since 2008, it required $12.67 of monetary stimulus.
“The weaker dollar is where we’re seeing outperformance coming through in these products,” said Mr. Weston. This coincided with a sharp slide in the US Dollar and breakout in gold prices. On a constant-dollar basis, international comparable system-wide RevPAR slumped 67.4% (down 67.3% in actual dollars) due to decline of 43.5% and 25.5% in occupancy and ADR, respectively.


Silver, gold’s more volatile precious-metal cousin—which tends to overshoot when gold rises and undershoot when it falls—has also risen this week. Precious metals gold and silver are on course for their best week in around three months, as their prices climbed alongside riskier assets in the wake of the election. Rising inflation also gnaws away at the return investors get on bonds, and so can make gold appear a more attractive investment. Buying gold is typically seen as a way to hedge against the risk of higher inflation, thanks to its 6,000-year history as a store of value.
Gold has soared in 2020 as the printing of money continues on a central bank level (globally) and a Federal level. Gold futures on the Comex division of the New York Mercantile Exchange on Friday were flat at $1,946.30 a troy ounce, but set for a weekly gain of 3.8%. The question is, what is the gold price target in the next few years? To do this, look at the last epic move that start in gold in 2001.
less An update and review of the stock and gold market. Between 2001 and 2011, gold surged from approximately $260 to $1,920, a $1,660 move. This gives a target of gold of $2,860. This is incredibly bullish for gold. Silver futures are up 7.8% this week at $25.49 an ounce.


While revenues from conductors/cables fell sharply by 29.9 per cent/31.1 per cent y-o-y, specialty oil recorded 4.8 per cent growth, driven by growth in lubricant and white oil sub-segments. Between all the publicly traded natural gas producers, total production volume represents ~20% of US gas production. M&A activity picked up pace in recent weeks after U.S. companies shook off the initial shock from the fastest slump in oil prices in recent memory. Are there enough reserves for oil production to hit the previous highs in the shale patch, even if price is conducive?
Depending on global LNG market, this could imply significantly higher Henry Hub prices to force the shut-ins.Stay bullish producers as the supply deficit is set to overwhelm the market. Now if the global LNG market improves even more throughout the winter, then that gas curve will have to go even higher. ‘s (NGL) customer Extraction Oil and Gas Inc.(XOG) was allowed to reject NGL’s agreement in bankruptcy court.
Within its distribution group, Algonquin owns and operates regulated water, natural gas, and electricity distribution utilities in the United States.
EBITDA, however, grew 9.7 per cent y-o-y, driven by the execution of low-priced oil inventory and cost-reduction initiatives. Everyone is cutting workforce numbers, from the oilfield services providers to the biggest oil corporations. But upside is likely only when ET can deliver DCF stabilization or crude oil goes past $60/barrel.

United States

Meanwhile, Powell announced yesterday that he would keep the Fed funds rates unchanged near zero and continue to pursue accommodative monetary policy until inflation picks up more strongly. Last week, I predicted President Trump would win reelection with 316 Electoral votes and showed a couple of ways to bet on that via PredictIt. However, a shift in the Fed’s stance toward interest rates is likely to trigger a bearish movement in homebuilder stocks in anticipation of further rate hikes.
It was widely assumed that a Trump victory would hasten the opening up of the economy, allowing cruise lines and airliners to increase profitability. One final point: without more stimulus the US economy will likely suffer a historic double-dip hit. That said, if the seemingly unwavering bid beneath stocks can push the Nasdaq above this technical barrier, there could be opportunity to extend toward all-time highs. Even as the presidential election outcome has been beset by uncertainty all week, Wall Street didn’t panic.
Stocks surged on expectations for divided government and gridlock – and four more years of Fed stimulus. “And those building blocks are the economy growing, the Fed accommodative, interest rates not excessive and inflation quiescent and we have all of those things.” The sensitivity to bond yield can also be explained by the low payout and higher price-to-book ratios of Nasdaq 100 companies versus peers. Since the coronavirus pandemic hit, Fed officials have pumped trillions of dollars into financial markets and provided lending backstops for corporations.
President Trump has vowed to contest the outcome of the election though, citing reports of possible voter fraud in several states. The performance of these stocks, in my opinion, casts a shadow on the assumption that a Trump victory will translate on a rapid reopening of the economy. All eyes are on inflation as the Fed is highly unlikely to shift to a hawkish stance without a pop in the general price level.
A discussion of the latest developments in precious metals, a look at the U.S. presidential election, the Fed, and mining shares. As of election night, my electoral vote prediction for Trump appeared too low. 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. Nasdaq price action also seems to be struggling at its bearish trendline extended through the 02 September peak and lower swing high notched on 13 October.
As Albert Edwards wrote in his latest note, “the likely fiscal impasse in the US from a divided government is important.
The consensus on Wall Street seems to be that a divided Congress lessens the likelihood of another stimulus bill getting passed anytime soon.


The group is a hardline Islamist group rooted in Muslim Uighur-dominant Xinjiang province that over the past years to try and oust Assad. This brought Beijing into quiet security and defense cooperation with Assad, given China has long been worried about the return of the battle-hardened Islamic fighters. In this case it appears geared toward keeping continued pressure on Beijing regarding the ethnic Uighur issue.