Daily Close | Forex, Metals, Oil, Agriculture September 14, 2020



USDA estimated US Soybeans production at 4.313 billion bushels and ending stocks at 460 million bushels. Soybeans went higher despite the neutral data on fund and other speculators buying. Soybeans were a leader on Friday due to the USDA reports and potentially bullish weather. Corn: Corn was little changed last week. Soybeans and Soybean Meal: Soybeans and the products closed higher for the week.


US Dollar Index (DXY) Wall Street Journal It seemed, however, that there had been a turn away from the US dollar in the month of July. How much the Federal Reserve might be willing to do, facing a rise in the value of the US dollar, is unknown at this time. The next three months the value of the dollar will be subject to substantial volatility, but the general trend will be more decline. This year’s spike in federal spending was caused by the multi-trillion dollar coronavirus relief/economic stimulus bills passed by Congress and signed by the president.
With that said, any decline in EURUSD could attract buyers as traders position for US dollar weakness into FOMC. If this is the result of the Fed’s change, then this would lead to a weaker dollar, not a stronger one. Now there appears to be further evidence that funds may be moving away from the dollar. The expectation is for the value of the dollar to fall further. A stronger dollar was another influence on arabica’s downdraft in price.
Source: Bloomberg The Dollar dived to what appears to be notable support from last week… I still believe that the future of the dollar is further weakness. This, too, should be a multi-hundred-million dollar opportunity for BD that continues on into 2021 and maybe beyond. On March 19, the US Dollar Index peaked at 102.52. During the , PAM delivered phenomenal real-dollar trading performance, the best at Seeking Alpha: PAM’s flagship year-to-date delivered profit on .
This means the updated dollar-denominated figure is approximately $3.8 billion.


The TARCA is guaranteed by SG Resources, Tuprag, Eldorado Gold (Greece) BV, Eldorado Gold BV, Integra Gold and Integra Gold (Quebec), all wholly owned subsidiaries of the Company.” Yes, the company is a reliable miner, and we now have excellent visibility that supports a long-term investment, especially with a high gold price, still over $1,900 per ounce. Investors increasingly view bitcoin as the digital version of gold, so by that logic, any bullish argument for gold should apply to bitcoin as well.
Conclusion, I see progress but nothing extraordinarily exciting at the moment besides the massive increase in the gold price that should help the company reduce further its debt load. While bitcoin’s price rallied above $12,000 just as gold was peaking, its price pulled back in early September as risk assets corrected. If gold price turns bullish and can cross $2,000 per ounce again, I believe EGO should be able to retest $13. Source: International Mining The Vancouver-based Eldorado Gold (EGO) has transformed into an efficient gold miner after a painful period of uncertainty and almost fatal tactical errors.
Note: Eldorado Gold now owns of Hellas Gold after purchasing 5% remaining of Ellaktor, which may simplify a potential partnership to develop the Greek assets. One crucial element this quarter was that the gold price jumped to per ounce. Without the complete settlement of the issue, it is hard to imagine EGO trading significantly higher unless the gold price continues its ascent, which is in jeopardy.
With those types of concerns becoming increasingly mainstream, it’s no wonder that the price of gold remains right near record highs.
In this situation, it is essential to look at the gold price as a vital indicator for the stock and trade your long-term position as I have explained earlier. However, if gold continues to plateau and starts to weaken below $1,900 per ounce, which is possible, I believe EGO will retest $10 and eventually lower to below $9. Some analysts see the same market conditions developing that propelled the price of copper up 450 percent between 2000 and 2011, during China’s industrial explosion.
There are people who think gold and silver, with investment portfolios holding somewhere around 0.5% globally and near universally reviled by the financial press, are in a bubble. The company did the following: Eldorado Gold extended the debt maturity to 2024 last year. “, Eldorado Gold completed an offering of US$300 million senior second lien notes at 98% of par, with a coupon rate of due June 1, 2024. The project has the potential to become the world’s second-largest copper mining complex, with annual output projected to be 800,000 metric tonnes a year.
14, 2020 4:24 PM ET|| About: Ivanhoe Mines Ltd. (IVPAF)by: Frank HolmesFrank Holmes Growth At Reasonable Price, Contrarian, gold & precious metals, CommoditiesU.S. On June 30, 2019, Eldorado Gold announced the decision to resume mining and heap leaching at Kişladağ, and the previous mill project was suspended.


Put together, the US and OPEC should see collective oil production rise by 54.9 million barrels this year. Case in point, consider production figures from two of the three major sources of global oil output: the US and OPEC. In the table below, you can see US production expectations and OPEC production expectations compared to what the EIA anticipated one month ago. Created by Author There is no doubt that, if these figures are accurate, the global picture for oil will be worse than previously anticipated.
Crude Value Insights offers you an investing service and community focused on oil and natural gas. For instance, Valero Energy, one of the world’s largest independent oil refiners is focusing on renewable energy. On the other side, big oil companies are now shifting focus to alternative or green energy to stay afloat in the changing times. Created by Author Based on the data provided, it seems pretty clear to me at the moment that the picture for oil has just worsened some.
In the report, BP looks at three scenarios for the future of oil demand: Business-as-usual, Rapid, and Net Zero. If these scenarios play out, oil demand will never return to pre-pandemic levels, according to BP. OPEC as a group should now produce around 25.78 million barrels per day. This is enough to stop pricing from moving materially higher from here, but crude pricing of around $50 per barrel shouldn’t be unrealistic. None of them envisage growth in oil demand over the long term.
In 2021, commercial crude inventories among OECD nations should be around 2.895 billion barrels. This works out to nearly 560 million barrels of extra crude.

United States

If the Fed foresees an ongoing downtrend in unemployment, that would imply a rate hike sooner than later – something that may worry markets. The trial could remain on hold at least through midweek, and probably even longer, as the US investigation continues. less European indices have been on a rollercoaster ride in the last few weeks as they experience whiplash trying to keep up with the leading Nasdaq 100 technology stocks. The company plans to close down 200 stores over the next two years, which is roughly 15% of its 1,478 stores across the US and Canada.
Then, the Fed dithered, believing that the crisis was contained in the credit markets of the financial sector – the so-called “credit view”. For one, there is an election taking place this fall and, historically, the Fed tries to maintain a low profile during a presidential election. Today, I would like to take a look at another Chinese Internet player, (NASDAQ:MOMO), which has been beaten up during all of this, and perhaps unfairly so.
The Bank of England also has a monetary policy announcement on the calendar and like the Fed, no major changes are anticipated. (Source: Raw data obtained from FRED) This time, however, unlike in ’08, the Fed took a much more immediate and direct response. The lower ending stocks come from less ending stocks for the US and for China. The US has less production and China has less production and increased demand. The message was that the Fed will leave low borrowing costs for longer – perhaps through 2025 according to Goldman Sachs.
That, in fact, is what is being flagged by the Atlanta Fed’s GDPNowcast.One offshoot of a supercharged GDP growth is a strong rebound in interest rates and bond yields. But, the seriousness with which the Fed is committing to this aggressive agenda is something that wasn’t seen even in 2007-08. Whether or not the Fed will be to achieve its objectives, especially considering the level of dysfunction on the fiscal side of things, remains to be seen.
The Fed will likely leave its policy unchanged – and try not to rock the boat – in its last decision before the elections. If the EIA is accurate, output this year in the US should average around 11.38 million barrels per day. He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post. Later in the year, the downward trend was more about US-China relations, and the US measures against Chinese tech companies, which as I’ve mentioned before should not impact Momo.
With some notable exceptions, such as his infrastructure plan, President Trump is not proposing any massive new spending programs.


Prolonged Brexit uncertainty has seen the equity index lag its European counterparts and a descending channel has been created in the wake of political gridlock. Without a firm resolution to the Brexit debacle, a continuation lower is a growing threat. Recently, the EU reported that economic growth had rebounded somewhat in the region.