Open: London Session | Forex, Metals, Oil, Agriculture August 11, 2020



On July 14, USDA reported that China bought 1.762 million metric tons of corn and 129,000 metric tons of soybeans. Soybean prices, in particular, jumped up 37.83 percent, from 3,454 yuan ($484.85) per metric ton in Aug. 2019 to 4,761 yuan ($682.1) per metric ton in Aug. 2020. The region mainly grows wheat, as well as soybeans and corn. Wheat production in Henan Province contributes to roughly a quarter of China’s total agricultural production. One woman in Xinjiang shared a video on social media on July 17, showing large wheat fields that have dried up.
The Center said the wheat would likely come from France, Russia, Lithuania, and Kazakhstan. (STR/AFP via Getty Images) Wheat is mainly planted in central and northern China. “You think this yellow color is harvested [wheat]?


Dollar index The dollar index gained marginally yesterday; however, it stays below the resistance at 94 and this level should be breached to turn the outlook positive. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.06 per cent to 93.52. The rupee appreciated 8 paise to 74.82 against the US dollar in early trade on Tuesday tracking weakness in the greenback and gains in the domestic equity market.
“Asian currencies were trading stronger against the US dollar this morning and could lend support. The nation’s finances are in tatters, with its bonds maturing in April next year trading at just 18.31 cents on the dollar. The local unit opened at 74.83 against the US dollar, then touched 74.82, up 8 paise over its previous close of 74.90 against the American currency.


In case the gold price rallies above $2,100 per ounce, the resulting buying tide will lift all gold mining boats. In the second quarter, IAMGOLD generated $72.4 million of operating cash flow, as it enjoyed an average realized gold price of $1,724 per ounce. This is a high level of AISC, although the current gold price environment will help the company generate good cash flow even with high costs. It produced 155,000 ounces of gold at all-in sustaining costs (AISC) of $1,189 per ounce.
Put simply, IAMGOLD remains a troubled company whose main hope is the continued increase in the price of gold. IAMGOLD has roughly $400 million of long-term debt, which is mostly due in 2025, providing the company with flexibility to finance the construction of the Cote Gold project. Cote Gold looks interesting at higher prices, but it will bring nothing but costs in the near term. However, there are plenty of gold mining stocks to choose from, so IAMGOLD will likely continue to underperform its peers.


Brent crude futures, the global oil benchmark, rose 0.47 per cent to $45.20 per barrel. These acquisitions generate massive shareholder value.Chevron (NYSE: CVX) is one of the best performing overall oil majors with a market capitalization of almost $170 billion. As mentioned in the presentation, oil and gas made up 1.2% of total loans at the end of the last quarter. The management expects charge-offs to remain elevated in the third quarter due to the oil and gas portfolio.

United States

Lately, the U.S has put legal sanctions on eleven Hong Kong officials, and the same act has been taken by China as a retaliatory measure against eleven U.S officials. Trump’s executive order mandating government agencies to purchase essential medicines from American manufacturers applies only to medicines that the government buys directly. less The game started first by the United States when the U.S President Donald Trump put tariffs on many Chinese exports to the United States.
China has also retaliated, and the bill reached billions of dollars of tariffs paid from U.S consumers’ pockets and many businesses that have lost a lot in both countries. The United States started to feel fearful about the national security and the huge amount of U.S citizens data collected by Chinese big tech companies and apps. Steven Mnuchin told CNBC that Democrats’ insistence on almost $1 trillion for aid to state and local governments is “absurd,” though a deal is still possible.
The company agreed to acquire Noble Energy (NASDAQ: NBL) in a $5-billion stock deal, which comes out to less than $11/share. Balancing Act Beijing appears to be trying to find a balance between sounding tough on the U.S. and avoiding triggering detrimental action by President Donald Trump. The Trump administration could cause the economy to bleed out by starving U.S. states of funds for political grandstanding, Bloomberg Opinion’s Brian Chappatta writes. We saw the rally after the March 23 low, then around June 8-11; when the Fed’s balance sheet was the biggest, there were a handful of buy signals.


At a food security meeting held in Beijing on July 27, he warned that governors would be punished if they failed to uphold the promise, including with dismissals. In addition, the United States is intended to sell $2.2 billion in weapons including tanks and missiles to Taiwan, despite protests from Beijing. However, worsening strains between Washington and Beijing over Hong Kong could limit the appreciation bias in currencies,” Reliance Securities said in a research note.
However, droughts killed the crops in Henan, Inner Mongolia, Gansu, Xinjiang, Jilin, and other northern provinces.
The situation in Inner Mongolia, Gansu, and Xinjiang is worse. China’s Vice Premier Hu Chunhua speaks at the Brazil-China Business Seminar in Beijing, China on October 25, 2019.


EU foreign policy chief Josep Borrell condemned “unacceptable state violence against peaceful protesters,” while the U.S. said the election was neither free nor fair. Italy, which was among the first to shutter shops and ask people to stay home, saw a 6.4% decline, the biggest in the EU. Germany yesterday warned Ankara that unilateral action in territorial disputes could strain its ties with the EU, urging Greece and Turkey to resume talks. The EU, with France’s Macron lately leading the way, has consistently sided with Greece and Turkey, condemning Turkey’s maritime violations of EU member states’ Exclusive Economic Zones.
Figures for the three months through March show an average decline of 1.7% across the EU. Poland called for the EU to arrange an emergency summit on the crisis.