Open: London Session | Forex, Metals, Oil, Agriculture August 17, 2020



Sugar futures on ICE touched a five-month peak on Friday at 13.28 cents per pound, as sentiment remained positive despite a possibly record output in top producer Brazil. Raw sugar futures on ICE rose to a five-month high on Friday, driven by fund-buying against a backdrop of diminishing production outlooks in Thailand and Russia. French consultancy Strategie Grains forecasts this year’s soft wheat harvest in the European Union and Britain at 128 million tonnes, 13% down on 2019.
Crop Watch corn and soybeans, including those in Iowa.


China’s top banking watchdog made a rare public criticism of the U.S., saying dollar dominance and Fed stimulus could push the world into another financial crisis.


However, due to the COVID-19 impacts, the guidance was reduced to 655,000-685,000 toz of gold equivalent, consisting of 365,000-385,000 toz gold, 21.5-22.5 million toz silver, and 23,000-24,500 toz palladium. After 190,000 toz gold and 2.15 million toz silver are delivered, the stream will be reduced to 3.25% of gold and 50% of silver produced at Marmato. Wheaton was able to maintain relatively stable sales volumes, although its attributable gold equivalent production declined by 23.2% (from 182,533 toz to 140,112 toz).
This situation is reflected in the volume of produced but not yet delivered metals, which declined by 8,900 toz gold, and 1.8 million toz silver. Marmato should be able to produce 165,400 toz gold and approximately 100,000 toz silver per year on average (an article about its recently released PFS can be found here). This applied for Franco-Nevada (FNV), Royal Gold (RGLD), Sandstorm Gold (SAND) and Osisko Gold Royalties (OR), and this applies also to Wheaton Precious Metals.
The original guidance expected attributable gold equivalent production of 685,000-725,000 toz. Wheaton will pay Caldas Gold $110 million and ongoing payments of 18% (later 22%) of the prevailing gold and silver spot prices. As the sales volume declined only slightly, the much-improved gold price was able to compensate for a better part of the losses. In Q2 2020, Wheaton sold 156,188 toz of gold equivalent.


Other factors are the apparent economic and social problems, not least due to Riyadh’s own adventures on the oil market and the coronavirus crisis. Malaysian palm oil futures rose, tracking stronger rival soyoil on the Dalian Commodity Exchange and Chicago Board of Trade, but lower August exports so far capped gains. Is oil exploration still worth it?

United States

The US-Israeli aggressive policy in the region also played an important role in fact promoting the popularity of the so-called Axis of Resistance. Donald Trump has repeatedly claimed, without evidence, that voting by mail is subject to widespread fraud, and there are claims he is deliberately undercutting the service. But as the Trump administration’s delayed responses and poor crisis management failed to contain the pandemic in the US, Trump reversed his stance.
“We will hold off on any investment or sourcing on the US market,” he said. The US government says Hong Kong goods for export to US must be relabelled ‘Made in China’. By SouthFront, The previous years were marked by the growth of the Iranian and Hezbollah influence and the decrease of the US grip on the region. US President Donald Trump announced the breakthrough agreement on August 13, calling Israel and the UAE “great friends” of his country. Brave timing Trump’s brother passed.
A V shape in the S&P 500 is not complemented by a V-shaped recovery in the US economy. In January, President Trump congratulated President Xi Jinping for China’s success in the containment of the COVID-19.


Xi Jinping wants China to join the clean-plate club.


Angela Merkel’s existing compensation covers up to 67% of salary for households with children and rises after six months.