Daily Close | Forex, Metals, Oil, Agriculture September 30, 2020



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. The trade is watching the weather and growing conditions around the world as well as the world Wheat price. Harvest conditions are good right now amid moderate temperatures and dry weather. For media inquiries, call 202-452-2955 General Comments: Winter Wheat markets closed lower with HRW and HRS the weakest markets.
World demand for US Wheat depends mostly on lower prices for US Wheat to compete with Russia, Europe, and other sellers and a weaker US Dollar. less General Comments: Cotton closed lower for the week on increasing harvest selling. One example is coffee behemoth (SBUX), which has recovered to pre-crisis highs after a very unpleasant, pandemic-driven selloff.


Since the first of September, the U.S. dollar index has risen by 3.1% and the iShares Silver Trust has fallen through important support levels near 22.90. The trade-weighted dollar was firm given the early-stage recession, but Gold decoupled from FX markets and firmed during this period of uncertainty. The dollar sold off against most of the major currencies despite stronger US data. If you adjust for inflation, this is quite a significant dollar decline in military spending.
Normally the dollar moves in lockstep with Treasury yields but we saw no signs of a broad-based risk rally. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. With Europe being the main theme of my professional life, obviously something to say on the euro crisis. In 2008, I joined ING and immediately had to put my experience on Europe, the Euro and policy-making into practice.


The Simandou iron ore deposit is regarded as the world’s largest high-grade iron ore deposit with iron ore content reaching 65%. It would also come at a time when China may need to import less iron ore, which could make it a buyers market. The issue for silver futures holders is that as time progresses, these futures contracts converge towards the spot price (since the interest rates decline in relation to time). While Simandou’s output is not expected to match that of Pilbara, the additional output could push the iron ore market into a surplus and depress prices.
Following the completion of this transaction, Cleveland-Cliffs will see its iron ore pellet capacity grow from 20 million tons per year to 28 million. The past few weeks have been quite volatile for silver with the price of silver sitting down around 17% from the highs established in early August. Most segments declined with the exception of iron ore. Iron ore led all segments with EBITDA margins of 67.1%.
Australian iron ore producers could find themselves in a situation where they are pitted against one another for a smaller slice of the market, creating potential winners and losers. Source: Bloomberg Silver’s collapse in September was the worst month since September 2011 (note that Silver bounced off its 100DMA in the last few days)… It may only be a matter of time before iron ore from Guinea reaches the market. However, from a year-to-date perspective, the silver bulls are still sitting on profits with gains in silver seen of over 35%.
But the market assigns a higher valuation to BHP compared to RIO, despite both having about the same amount of exposure to iron ore. The price of silver may rise 30% or more over the next year due to its momentum tendencies as well as market volatility. It’s buying, in all, six steelmaking facilities, eight finishing facilities, two iron ore mining and pelletizing facilities, and three coal and cokemaking operations.
While the two companies supply a range of products, it’s iron ore that offers the highest margins at the end of the day. At the same time, the likelihood of new supply of iron ore from West Africa has increased.
China could potentially get iron ore from Guinea and therefore need less from Australia. This could happen if geopolitical issues forces a realignment in the iron ore industry. If markets are able to find a footing in this region, investors might find opportunities near current price levels in the iShares Silver Trust. Out of $22 billion in group EBITDA, iron ore accounted for $14.6 billion or around 64%.


At the same time, the pandemic has highlighted how national oil companies (NOCs) can endure low oil prices for longer than their international peers. Still, Exxon Mobil remains as one of the largest international oil refining companies with a total global refining capacity of around 5 million barrels per day. The Big Oil companies, however, have one thing going for them. Crude Value Insights offers you an investing service and community focused on oil and natural gas.
is another Big Oil company whose shares have taken a hit. The energy stocks got crushed in the March coronavirus sell-off as crude plunged to multi-decade lows as the economic lock downs hit around the globe. To top it all off, The Economist recently proclaimed the death of oil (once again: see 1999 and 2003). Indeed, it is navigating through these challenging times by adding more strings to its bow in the form of non-oil revenues.

United States

So far the stock market doesn’t seem too upset at the prospect of Biden winning, despite Trump’s more market friendly policies. I conclude from all this that investors in the US bond market are not expecting a very robust US economy over the next few years. By the end of the last debate and the five words that won him the election, Trump sealed the deal with millions of undecided Elephants. But, the picture of the economy should not be too rosy as bond investors feel the new policy of the Fed to raise inflation will not be very effective.
But, overall, the direction of the 10-year yield on TIPs can provide us with some fell for investor sentiment about expected economic growth of the US economy. Source: Investor presentation Last year, Wayfair took 38% of online home category spending growth in the US, which is pretty staggering to think about. Wall Street’s performance has been strong in the third quarter despite the recent market rout.
As virus cases continue to soar across the US, the postponement of more games would be bad news for sports betting stocks. PayPal was founded as a digital payment company, initially as part of the eBay (NASDAQ:EBAY) platform but later spun off to accomplish even greater reach. Aside from hurling insults at his opponent, Trump also made extra clear his distaste for cities and local leaders. Often this yield on the TIPs have been tied to the expectation about the growth rate of the US economy.
CNN initially declared the debate a “shitshow” on live television, a view that was later parroted by Wall Street. In June, the Fed released the results of its annual stress test and additional analysis, which found that all large banks were sufficiently capitalized. However, just in case they weren’t, the Fed also restricted banks from increasing dividends above second-quarter levels, and buybacks were banned. “Trump tried again to appeal to suburban voters through the fear of desegregation, saying that “our suburbs would be gone” under a Biden presidency.
“While many investors are focusing on the outcome of the 2020 election between incumbent Donald Trump and former Vice President Joe Biden.
Walking into Pelosi’s office, Mnuchin wouldn’t speculate on the chances of a deal after weeks of stalled talks. You’ll have to give me a definition cause I really don’t know who they are” Trump said before departing the White House on Wednesday. Today s Agenda Trump s debate aggression hurt him. As for Trump being racist, here is at least one opposing view: I’ve known Trump since 2014.


By now, I have built up excellent skills and experience in analyzing macroeconomic and political developments in Europe, the Eurozone and Germany, including ECB watching. Main focus: Europe, Eurozone, Germany and ECB.