Daily Close | Forex, Metals, Oil, Agriculture September 21, 2020



Corn is having trouble making any upside moves despite the demand due to the harvest and stronger than expected very early yield results. These areas are trying to plant the next Winter Wheat crop but the dry weather and the dry soils are keeping farmers out of the fields. China seemed to be mostly quiet in the Corn market last week but did buy 210,000 tons on Friday. Wheat: Winter Wheat markets were higher last week as it remains dry in Europe and Russia.
It also covers the commodities market daily focusing on in-depth technical developments in GOLD, CRUDE OIL, SILVER, CORN & WHEAT. Soybeans were the leader to the upside due to the strong Chinese demand.


They stress the low prices of various debt securities and that even first lien term loan debt is selling at only about 39 cents on the dollar. In fact, earnings could improve to about a dollar per share in normal circumstances, merely as a result of lower debt, not accounting for the near-term earnings boom. With marijuana legalization and sales expected to grow quickly, companies are directing every available dollar into growing the business, not paying shareholders.
4.3 million trips * $450 Avg Rental * 23% Fees = $445 Million This is an opportunity for a half billion dollar business with incredibly high margins. Source: U.S. Bureau of Labor Statistics In the United States, low interest rates could have a depressive effect on valuations in the Invesco DB U.S. Dollar Index Bullish Fund. The steep ascent also puts the broader US Dollar on pace to close above its 50-day moving average. The US Dollar is gaining considerable ground to start the week as stocks slide further.
This is boosting the DXY Index as the US Dollar strengthens across the board of major FX peers like the EUR, GBP, CAD, and AUD to name a few. Source: Bloomberg The dollar was panic-bid today (best day since June) as stocks sank… Source: Bloomberg And as the dollar surged, cryptos were crushed (led by Ethereum)…


Source: Kinross Gold presentation Kinross Gold expects that its production will grow from 2.4 million gold equivalent ounces (NYSE:GEO) in 2020 to 2.9 million ounces. The longer-term prospects remain favorable for gold, and Kinross Gold’s plan to increase production while decreasing capital spending is set to provide strong cash flows. Very often, gold and gold miners will trade right with the major stock indexes contrary to popular belief that they are always the safety trade when stocks fall.
If gold suffers a temporary setback and puts some pressure on Kinross Gold shares, they’ll certainly become attractive for a “buy on pullback” trade. New Gold Inc., an intermediate gold mining company, engages in the development and operation of mineral properties. It seems that gold and gold miners are falling in line with the major stock indexes. Today, all of the gold and gold mining stocks are declining sharply lower on the session. 21, 2020 3:33 PM ET|| About: Kinross Gold Corporation (KGC)by: Vladimir ZernovVladimir Zernov Long/Short EquitySummaryKinross Gold provides production guidance for 2021-2023.
Rising production and falling capex spending at a time of higher gold prices set the stage for significant cash flow production. The big increase in spending by miners is yet to come through in Geodrill results, and assuming bullish gold market narrative is correct, could last for a while. In the first half of this year, Kinross Gold generated $732.4 million of operating cash flow so its dividend certainly has a margin of safety.
Radomski is the author of Sunshine Profits’ Gold & Silver Trading Alerts and many of company’s investment tools.
Fabrice shares his thoughts on the economy, stock markets, geopolitics, gold and silver. He follows regularly since 1970 the gold, silver and foreign exchange markets. At the same time, Kinross Gold expects that its capex will decrease from $900 million in 2021 to $700 million in 2023. In brief, Geodrill is well positioned to almost literally “sell shovels in a gold rush”, while its share price hardly reflects these positives.
He follows and analyzes the gold and silver markets since 2008. One of the leading gold mining stocks in the market that is coming under pressure today is Newmont Mining Corp (NEM). Source: Bloomberg Silver futures briefly fell to a $23 handle intraday… And gold was hit hard as real yields spiked… >> Fabrice Drouin Ristori on Twitter is an independent investment analyst and studies the gold and silver market and their future role in the international monetary system.


Earlier this year, China imported record volumes of crude oil in May and June, as the oil-hungry nation attempted to benefit from the low oil prices in April. This steady oil supply, paired with decreased oil demand, resulted in lower gasoline, diesel, jet fuel, and ethanol prices. So far in the third quarter, China’s crude oil imports have stayed strong, with high congestion at many major crude ports. “But activity so far in September suggests that the world’s biggest importer of crude oil has been absorbing much less than a month ago,” Katsoulas said.
Therefore, for the full year, gasoline saw a 32% decline in market price, while diesel saw a 42% price decline. UNG is the most popular gas ETF for a reason: it is very simple and tracks the front month natural gas contract. This increase was due to lower of cost or market (LCM) inventory costs of $2.542 billion triggered by a decline in oil prices. Norway’s state-controlled , for one, is boosting its presence in the Asian oil market, having doubled crude sales to the region.
What is holding back the company is the volumes and price volatility of oil and gasoline. On the surface, this looks great, but the oversupply of oil in a market with little demand for distillate products actually isn’t good at all. Seen from another angle, natural gas production is declining in every single major production region. This translates into significantly fewer fresh deals for crude oil, with shipments to China continuing to decline,” IHS Markit’s Katsoulas noted.
The key takeaway here is this: if we see even a mild uptick in demand from a recovering economy, then natural gas inventories could start weakening substantially. At present, natural gas is in the midst of a fairly strong pullback with price reversing the gains seen since the middle of August. In fact, if we measure the swing of production, this is the largest and fastest switch in outright natural gas production ever seen. Natural gas is in a technical pullback and recent market action suggests that we’re going to see further upside in the trend.
Roll yield is the return that investors make or lose which is attributed to futures converges to the spot price of natural gas.
Therefore, demand for gasoline and distillates has increased, and so have market prices. First off, natural gas production is in strong decline. Source: EIA As the world economy stumbled due to COVID-19, oil production remained the same.

United States

Satellite radio has long been a growth industry, and while the US market is increasingly saturated, that isn’t to say that the revenue isn’t steadily rising. Source: Bloomberg Additionally, the U.S. housing market is another area that could be affected by the Fed’s decision to maintain low interest rate levels. For the next fiscal year FY21, Wall Street analysts are calling for consensus EPS of $11.17, representing 12% y/y earnings growth. The Nasdaq has been the unparalleled leader of the stock market in 2020, having rallied furiously off the COVID-19 crash market bottom in March.
To be sure, US-China tensions and US election uncertainty could be feeding into global risk aversion, so the Nasdaq 100 may remain a key bellwether for broader equity performance. If this continues, the Fed might see difficulties in keeping interest rates low in the event that consumer pricing pressures become unmanageable. Similarly, Adobe’s (NASDAQ:ADBE) data showed accelerated growth in online sales equivalent to 4 to 6 years.
The figure below is pretty clear, in the US, e-commerce is still in growth mode. The 5 year plan would be to ‘copy and paste’ the US factory and business model and manufacture and sell locally on a global basis. As Peter Schiff recently highlighted after The Fed’s latest farcical press conference, central bank policy is creating a very bullish environment for precious metals prices to continue to rise. Zai Lab (NASDAQ:ZLAB) of Shanghai is conducting a Hong Kong IPO that is expected to raise up to $845 million, offering 12.3% of the company’s expanded number of shares.
Source: WSJ Experts quoted in the US press reports are already slamming the CDC for injecting more confusion into the conversation surrounding COVID-19 prevention at a particularly risky time. New lockdown measures are always around the corner, and it is also possible that the UK trend won’t be reflected in the US, or elsewhere. Looking closer, you can see that the Nasdaq closed August right on that Fibonacci level and is currently creating a bearish reversal pattern this month (in September).
In this case, we can see that the Fed is not expected to take significant action on the potential for rising inflationary pressures until 2023. After such an extended move of price bulls not being able to penetrate the US$26 fractal support zone for weeks is more than impressive. To obtain an insight into the matter, I analyse the US quarterly e-commerce sales as a percentage of total retail sales.
PayPal (NASDAQ:PYPL) experienced growth levels they weren’t expecting for 3 to 5 years.
The S&P500 and Nasdaq 100 both closed below their respective 50-day moving averages for the first time since late April. One week ago, Ascentage reported its novel Bcl-2 inhibitor was awarded ODD in the US for chronic lymphocytic leukemia.


LinkDoc Technology, a Beijing oncology big data company, raised $103 million in a Series D+ funding round, primarily from new investors, CICC Capital, Youshan Capital and iFOF. Beijing-based Biocytogen completed a $142 million Series D+ round led by returning investor CMB International. REMD is a clinical stage San Francisco-Beijing biologics company. Founded in 2008, Biocytogen has branches in Beijing, Haimen/Jiangsu, Shanghai and Boston.