Open: London Session | Forex, Metals, Oil, Agriculture July 21, 2020

USDA reports another U.S. soybean sale to China China booked deals to buy about two cargoes worth of U.S. soybeans, the U.S. Agriculture Department said on Monday, extending a flurry of sales to the world’s top importer of farm commodities. TOP NEWS USDA raises soybean crop rating, keeps corn rating steady The U.S. Department of Agriculture on Monday raised its good-to-excellent rating for the nation’s soybean crop and kept its corn rating unchanged, surprising analysts who expected a decline in the condition of both crops from a week ago. Chicago soybean futures for November delivery finished at $9.00 per bushel on Monday, the contract s fourth settle at or above $9 since early March. EXCLUSIVE-Saudi Arabia liberalises wheat imports for flour mills Saudi Arabia’s state grain buyer SAGO said on Monday that companies that buy its flour mills will be able to import wheat directly from global markets in a further liberalisation of the country’s grains sector.

The soybean scores are also among the highest, but much of the corn could get by with one or two more good rains, while the soybeans will still depend on good moisture through next month. CHART OF THE DAY NO MAJOR EVENTS SCHEDULED FOR THE DAY TECHNICAL CHARTS CBOT Corn | |CBOT Wheat | CBOT Soy | CBOT Soy Meal | ICE Cocoa | ICE Coffee Learn More body { margin: 0 !important; padding: 0 !important; -webkit-text-size-adjust: 100% !important; -ms-text-size-adjust: 100% !important; -webkit-font-smoothing: antialiased !important; } img { border: 0 !important; outline: none !important; } p { Margin: 0px !important; Padding: 0px !important; } table { border-collapse: collapse; mso-table-lspace: 0px; mso-table-rspace: 0px; } td, a, span { border-collapse: collapse; mso-line-height-rule: exactly; } .ExternalClass * { line-height: 100%; } .em_white a { text-decoration: none; color: #ffffff; } .em_black a { text-decoration: none; color: #000000; } .em_blue a { text-decoration: none; color: #fff; } @media only screen and (min-width:481px) and (max-width:599px) { .em_main_table { width: 100% !important; } .em_wrapper { width: 100% !important; } .em_hide { display: none !important; } .em_img { width: 100% !important; height: auto !important; max-width:none !important; } .em_side10 { width: 10px !important; } .em_h20 { height: 35px !important; } .em_ptop { padding-top: 20px !important; } .em_aside10 { padding: 20px 10px 0 10px !important; } .em_aside20 { padding: 0 10px !important; } } @media screen and (max-width: 480px) { .em_main_table { width: 100% !important; } .em_wrapper { width: 100% !important; } .em_hide { display: none !important; } .em_img { width: 100% !important; height: auto !important; max-width:none !important; } .em_side10 { width: 10px !important; } .em_h20 { height: 35px !important; } .em_ptop { padding-top: 20px !important; } u + .em_body .em_full_wrap { width: 100% !important; width: 100vw !important; } .em_img1 { width: 85% !important; height: auto !important; } .em_aside10 { padding: 20px 10px 0 10px !important; } .em_aside20 { padding: 0 10px !important; } } 2020 Refinitiv.

COLUMN-Soybean market approaching China’s U.S. purchases with caution -Braun China is actively booking this year s U.S. soybean crop and has made a historic string of purchases this month, but soybean futures remain near the lowest levels in recent memory for the time of year.

The agency, in a weekly report, said 69% of soybeans were in good-to-excellent condition, up one percentage point from a week earlier. COLUMN-Crop Watch: Producers boost corn hopes on better weather -Braun Last week s favorable weather led several U.S. MARKET NEWS Chicago corn and soybean futures slid after a better-than-expected U.S. Department of Agriculture (USDA) report on the condition of both crops. More sun, rain needed to strengthen Ivory Coast main cocoa crop -farmers Rains in most of Ivory Coast’s cocoa growing regions were well below average last week, and more downpours and sunny spells are needed to boost the top grower’s main crop, farmers said on Monday.

Increased soil moisture was helping trees develop tiny flowers and small pods, which was an encouraging start for the main cocoa crop, the farmers added. Russian wheat with 12.5% protein loaded from Black Sea ports was at $208.5 a tonne free on board (FOB) at the end of last week, up $6.5 from the previous week, SovEcon agriculture consultancy said. Private exporters reported to the USDA that China bought 132,000 tonnes of soybeans for delivery in the 2020/21 marketing year that begins on Sept. 1. Crop Watch growers to increase corn condition and yield scores, bringing those eight-field averages to the highest levels for any week since Crop Watch began in 2018. Russian wheat prices up amid slow supply Russian wheat export prices rose for the second consecutive week last week due to the slow pace of harvesting, which started later than a year ago, and weak supply from farmers in southern regions, analysts said on Monday.

Arabica coffee futures closed sharply down on Monday on ICE, erasing the large gains seen on Friday as fears about a cold front over Brazilian coffee fields dissipated.

The onshore yuan rose to as high as 6.9804 per dollar.The euro stood near Monday’s four-month high of $1.14675 as traders looked to the final outcome of the marathon EU summit that started on Friday. With the US debt levels now reaching over $26T, and Congress on the cusp of passing yet another multi-trillion-dollar stimulus bill, a $30T debt level by the end of 2020 isn’t out of the question. The spread of Italian over German bond yields tightened and the euro strengthened against the dollar, in both cases to levels not seen since before the Covid-19 outbreak reached Europe: The actual terms matter greatly. It last traded at $1.1459.The yen was little moved at 107.19 to the dollar.Gold held firm at $1,818 per ounce, having hit a nine-year high of $1,820.4 on Monday.The metal retains its strength as an ultimate store of value as central banks around the world have committed themselves to an unprecedented level of money-printing to shore up pandemic-hit economies.Brent crude ticked up 0.1% to $43.35 per barrel, while U.S. West Texas Intermediate (WTI) was flat at $40.94.

Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. The S&P500 also hit a five-month peak.Euro Stoxx 50 futures gained 0.25 per cent in Asian trade to stand near their highest since early March.European Union leaders appeared close to an agreement on a massive stimulus plan for their coronavirus-blighted economies, with EU Council President Charles Michel voicing confidence of reaching a deal on the 750 billion euro recovery fund.“They are now discussing a compromise on how the fund will be distributed between grants and loans. Whilst risk sentiment is lifting stocks across Europe, the Euro is working on a buy the rumour sell the fact basis. This is true globally, whether debt is counted in dollar terms, or as a percentage of GDP: What relevance does this have for stocks?

Nikos Chrysoloras and John Ainger What s Happening Buoyant Markets | The euro rallied to a four-month high on the prospect of a deal, and the move could extend should the region’s economy start to outperform the U.S. Italy’s bonds pummeled at the height of the crisis in March surged, showing risk may be dissipating from the bloc. Dollar-denominated debt accounted for 83% of the total foreing debt outstanding, according to the State Administration of Foreign Exchange. Generally they are fear, inflation, and strength of the dollar.

CrossBorder Capital does some calculations comparing total U.S. debt with the gold price, going back a century. It last traded at $1.1459.The yen was little moved at 107.19 to the dollar.Gold held firm at $1,818 per ounce, having hit a nine-year high of $1,820.4 on Monday.The metal retains its strength as an ultimate store of value as central banks around the world have committed themselves to an unprecedented level of money-printing to shore up pandemic-hit economies.Brent crude ticked up 0.1% to $43.35 per barrel, while U.S. West Texas Intermediate (WTI) was flat at $40.94. 21, 2020 1:41 AM ET|| Includes: AAAU, AGQ, BAR, CEF, DBP, DBS, DGL, DGLD, DGP, DGZ, DSLV, DZZ, GLD, GLDI, GLDM, GLL, GLTR, IAU, IAUF, JJP, OUNZ, PALL, PGM, PHYS, PLTM, PPLT, PSLV, PTM, QGLDX, SGOL, SHNY, SIVR, SLV, SLVO, SPPP, UBG, UGL, UGLD, USLV, USV, ZSLby: Robert KientzRobert Kientz Gold, commodities, tech, silverGoldSilver ProsSummaryI meet with Florian Grummes of Midas Touch Consulting to discuss the precious metals market and the economy.Even though gold is overbought on the charts, he believes the market wants to see $1900 or close to it.COVID’s effect on the economy is a complicated analysis in which we do not have final answers yet.Gold should break $2000 next year given the constant expansion of credit and money by central banks.I meet with Florian Grummes, fellow Seeking Alpha author, regarding the economy and precious metals markets.

In this chart from CrossBorder Capital Ltd., the gold price s deviation from its trend is plotted against the combined liquidity of the U.S. and China. To get back to that level from where we are now would require an increase in the gold price of about 40%. It therefore becomes far more attractive when the real yield on alternative investments becomes negative and as this chart, with an inverted gold price, shows, lower real yields lead inexorably to higher gold prices: There are other ways to show that gold should benefit from the current extraordinary monetary conditions.

I’d recommend a 10% position, split between a decent gold miners ETF (like GDX), and “paper gold” like IAU. In that case, it may make more sense to own some of the individual stocks inside the ETF, such as Pan American Silver or MAG Silver, which have more favorable jurisdictions. If the Fed and other central banks are determined to stick with financial repression, and this great piece by Bloomberg Opinion colleague Tim Duy suggests that they are, then real yields should fall further, liquidity should continue to bubble, and gold should continue to be a good bet. Right now gold has been on a tear. The average total value of debt outstanding in gold terms turns out to be about 30 billion ounces. They’re massively overbought right now, wait for the pullback.Make sure you have gold in your portfolio. Stocks might offer some kind of a haven from such repression, but perhaps the most obvious shelter is gold which has also, entirely uncoincidentally, hit its highest in almost a decade.

Although these two ETFs are both silver mining ETFs and will track the silver price closely, they turn out to be significantly different when their jurisdictions are broken out. Take advantage of that and hedge your portfolio with gold. To benefit from that repression, it might be worth taking on some gold. Source: Pan American Silver FY2019 Annual Report Source: Harmony Gold FY2019 Annual Report Source: SSR Mining FY2019 Annual Report Source: Newmont Mining FY2019 Annual Report Source: Hecla Mining FY2019 Annual Report Source: Eldorado Gold FY2019 Annual Report Source: First Majestic Silver FY2019 Annual Report Source: Coeur Mining FY2019 Annual Report Source: Industrias Penoles FY2019 Annual Report Source: MAG Silver FY2019 Annual Report Source: Silvercorp Metals FY2019 Annual Report Source: Dundee Precious Metals FY2019 Annual Report Source: Fortuna Silver FY2019 Annual Report Source: New Gold FY2019 Annual Report Source: Wheaton Precious Metals FY2019 Annual Report Source: Each company’s FY2019 Annual Report The iShares MSCI Global Silver and Metals Miners ETF is a convenient way to diversify your silver mining company holdings.

More debt would mean a higher gold price. This article will highlight the iShares MSCI Global Silver and Metals Miner ETF and break down the top 15 holdings within the ETF and their jurisdictions. Among them are Axis Bank, Bajaj Finance, Bajaj Finserv, Hindustan Copper, Hindustan Zinc, Indiamart, Mahindra CIE, Polycab, Shanthi Gears and Tata Elxsi.Promoters will distribute the entire proceeds (post taxes etc) to the shareholders in the form of buyback/dividend, expect marketmen.It’s a big day for insurance majors too: HDFC Life Insurance, ICICI Prudential Life Insurance and SBI Life Insurance will declare their financial performance.Marketmen’s focus will be on Hindustan Zinc. There are numerous ways to gain exposure to silver, and one of the simplest is to buy a silver ETF made up of silver mining companies.

Gold s chief problem as an asset is that it pays no yield. Consider the factors leading to a swing in gold prices. But if you insist on owning SLVP, then it’s good to be aware of it, and can open you up to be more selective with your other gold and silver holdings. However, capital loss via different jurisdictions is also wise to protect against.With economic uncertainty high and rising, it may be a great time to invest in precious metals such as silver. I also recently took a look at the Global X Silver Miners ETF (NYSEARCA:SIL) and thought it would make a helpful comparison to also dissect the jurisdictions for the other silver mining ETF that investors favor. (Source: YCharts) Gold is not typically exciting. I know gold isn’t exciting – but it will be when the inflation hits. With the economic climate behaving the way it is, many people are trying to protect their hard-earned wealth with gold and silver. 21, 2020 1:03 AM ET|| About: iShares, Inc. – iShares MSCI Global Silver Miners ETF (SLVP), Includes: AG, CDE, DPMLF, EGO, FSM, HGMCF, HL, HL.PB, HMY, IPOAF, MAG, NEM, NGD, PAAS, SSRM, SVM, WPMby: Brent HechtBrent Hecht Long only, Deep Value, value, growth at reasonable priceIQ CalculatorsSummaryIf you invest in SLVP, the countries you are investing in may surprise you.You may be exposing yourself to more risk, when your primary intention for investing in the ETF is to diversify.Capital preservation in times like these can be a top priority.

Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. Here are some takeaways from the above analysis: If you invest in other precious metals ETFs, a couple of popular ones are GDX Large Cap Gold Miners ETF and GDXJ Junior Gold Miners ETF, which I have also done some jurisdiction analysis for. Considering everything from the U.S.’s threat to delist Chinese companies, to moves to strip Hong Kong of its special status, 20, 2020 11:35 PM ET|| About: Harmony Gold Mining Company Limited (HMY)by: Taylor DartTaylor Dart Long/short equity, momentum, gold & precious metalsTaylor DartSummaryHarmony Gold is one of the top-performing gold stocks year-to-date, up over 82% for the year.The gold price strength has led to massive upwards earnings revisions for the miner, with Harmony now boasting one of the highest earnings growth rates for the sector for FY-2021.However, the stock is beginning to get a little extended in the short term above $6.60, and is now more than 50% above its 200-day moving average.Therefore, I believe investors would be wise not to chase the stock above $6.75 as the reward to risk is no longer favorable here.It’s been an outstanding start to the year for the Gold Miners Index (GDX), and Harmony Gold (HMY) is one of the miners that has led the charge, doubling the sector’s return with an 82% advance in six months.

less Points of Return Follow Us Get the newsletter Gold Fillings for the Fangs Maybe it hasn’t been such a bad year after all.

My view is that a significant EV metals miners (lithium, cobalt, graphite, nickel, rare earths, manganese) price rally will happen between now and end 2022, as EV demand surges due to cheaper EVs being available globally starting in 2021/22. Although it is simple and creates a portfolio of diversified silver miners as fast as you can press the buy button, it also presents unknown risks, such as jurisdiction risk. We’ve already seen a nice move up in the price, and although it will be a bumpy ride, the longer-term macro-environment for silver remains favorable.

21, 2020 1:03 AM ET|| About: iShares, Inc. – iShares MSCI Global Silver Miners ETF (SLVP), Includes: AG, CDE, DPMLF, EGO, FSM, HGMCF, HL, HL.PB, HMY, IPOAF, MAG, NEM, NGD, PAAS, SSRM, SVM, WPMby: Brent HechtBrent Hecht Long only, Deep Value, value, growth at reasonable priceIQ CalculatorsSummaryIf you invest in SLVP, the countries you are investing in may surprise you.You may be exposing yourself to more risk, when your primary intention for investing in the ETF is to diversify.Capital preservation in times like these can be a top priority. It last traded at $1.1459.The yen was little moved at 107.19 to the dollar.Gold held firm at $1,818 per ounce, having hit a nine-year high of $1,820.4 on Monday.The metal retains its strength as an ultimate store of value as central banks around the world have committed themselves to an unprecedented level of money-printing to shore up pandemic-hit economies.Brent crude ticked up 0.1% to $43.35 per barrel, while U.S. West Texas Intermediate (WTI) was flat at $40.94.

Given such a Fed status quo and a likely dialing-back of growth forecasts, the positive backdrop of sliding real rates and climbing inflation expectations could well be close to an end. Ziad K. Abdelnour is a Wall Street Financier, Author, Philanthropist, Activist, Lobbyist, Oil & Gas Trader & President & CEO of Blackhawk Partners, Inc., a New York based private … more Ziad K. Abdelnour is a Wall Street Financier, Author, Philanthropist, Activist, Lobbyist, Oil & Gas Trader & President & CEO of Blackhawk Partners, Inc., a New York based private equity “family office” that focuses on originating, structuring, advising and acting as equity investor in management-led buyouts, strategic minority equity investments, equity private placements, consolidations, buildups, and growth capital financing in companies and projects based both in the US and emerging markets. We don’t know its exact size but I bet it will be something like $1 to $1.5 trillion.”Advisers to President Donald Trump and congressional Democrats were set to discuss the next steps in responding to the coronavirus crisis on Tuesday.Although coronavirus infections have surged in recent weeks in the country’s south and west, investors hope another economic package, which will come after $3 trillion in stimulus earlier this year, will help the economy tide over a difficult period.Hopes that vaccines against the Covid-19 disease might be ready by the end of year also supported risk assets, following promising early data from trials of three potential vaccines.The positive mood, however, faces more reality checks later this month as earnings season will be in full swing in many countries in coming weeks.“If companies give stronger guidance than market expectations, that will be positive for stocks.

Vulcan is focused on the faster-growing sunbelt of the US, rather than the northeast which has witnessed a declining population. Mnuchin to start talks with Pelosi on virus relief for U.S. U.K. report on Russian meddling due as NSA issues warning.

Finally, one of the most compelling things about AMT is that its contracts are usually non-cancellable and include price raises of 3% in the US (materially outpacing inflation recently). Democrats in Congress and Secretary Steven Mnuchin approached COVID-19 as a temporary emergency. “Heads of state, especially Donald Trump and Jair Bolsonaro, have deliberately spread false narratives regarding Covid-19,” the report said. “The statement came as Mike Pompeo, the US secretary of state, prepared to meet Boris Johnson and Dominic Raab on Tuesday.Mr Pompeo and his boss, Donald Trump, have reason to be please with their UK counterparts this week, after Huawei was booted out of Britain’s 5G infrastructure following a massive American lobby campaign – and punishing sanctions on the Chinese company.Mr Pompeo wrote on Twitter: “Great to be back in London to reaffirm the special relationship we share with our closest ally.”

If the Fed and other central banks are determined to stick with financial repression, and this great piece by Bloomberg Opinion colleague Tim Duy suggests that they are, then real yields should fall further, liquidity should continue to bubble, and gold should continue to be a good bet. Photographer: John Thys/AFP Steve Mnuchin and Nancy Pelosi will kick off a first round of talks on the next virus relief plan, even as Republicans are still hashing out an agreement among themselves. One driver of that outperformance was the announcement of a potential $1 trillion infrastructure bill from the Trump administration and the $1.5 trillion Democratic Moving Forward Bill. The Trump administration is trying to encourage people to wear masks, months after the president resisted covering his face in public. As the largest producer of construction aggregates such as crushed stone, sand, and gravel in the US, Vulcan has almost equal exposure to the public and private construction market.

The past two weeks returns for some purer play EV metal miners: Note: I have used the US tickers for the above as they were the only ones that would show on the chart below on Yahoo Finance over a 2 week period. With the US debt levels now reaching over $26T, and Congress on the cusp of passing yet another multi-trillion-dollar stimulus bill, a $30T debt level by the end of 2020 isn’t out of the question. According to it, the US subsidiary trades at a significant premium to the company’s market capitalisation. It will be valid at some point, as for now the rotational froth continues, and fighting this market has been more than merely ‘fighting the Fed’ (though they do that too). The question is no longer whether we will have a fund or not,” said Nobuhiko Kuramochi, market strategist at Mizuho Securities.“The US will likely adopt stimulus by the first week of August. The amplification of fake news by Trump and Brazil’s president was cited by a panel of British lawmakers calling for the regulation of social media.

Furthermore, the pace of real rate declines is likely to slow as expectations for the Fed to introduce negative rates have cooled. Early on, President Trump had lots of help from House Speaker Nancy Pelosi, New York Gov. The US arm of Majesco Ltd on Monday signed a definitive agreement to be acquired by Thoma Bravo, L.P, a PE firm, in a transaction valuing the company at $594 million. As on July 17, 2020, the value of the company’s entire stake in the US subsidiary was $245.33 million, compared to the total market capitalisation of the company in India of $141 million. Now their counterparts in India are piling in too.Spurred on by a spate of Indian brokerages offering new low-fee trading plans and the ability to buy fractional shares overseas, local amateur investors are snapping up names like Netflix Inc, Amazon.com Inc and Facebook Inc. Vested Finance Inc, which helps Indians buy and sell offshore stocks and exchange-traded funds, said it received $5 million in investor deposits in the June quarter, up 50 per cent from the previous three-month period.The underlying focus for a lot of them is to invest in brands that they have been using, especially the technology brands listed in the US, said Viram Shah, the brokerage’s chief executive officer.

Following thIs, Majesco will operate as a privately held company.As on date, Majesco holds 3.21 crore common stock of the US subsidiary. The areas with a strong Turkish military presence and the US-controlled zone of al-Tanf remain the main sources of tensions and instability in Syria. His pitch tells voters that Trump’s “America First” economic populism “is sound in principle, and only lacking in execution.”

China urges the UK side to immediately stop interfering in Hong Kong affairs, which are China’s internal affairs, in any form.” Sharing the full story, not just the headlines Download now Show latest update 2020-07-21T06:21:05.193Z The UK will “bear the consequences” of suspending its extradition treaty with Hong Kong, China has warned.A spokesperson for the Chinese Embassy in London said Beijing had expressed its concerns over the UK interfering in Hong Kong matters “which are internal affairs of China”.The spokesman said: “Now the UK side has gone even further down the wrong road in disregard of China’s solemn position and repeated representations. Meanwhile, a diplomatic row with Beijing grows more heated, following China’s move to bring Hong Kong more closely under its control with a so-called “national security law”.

Boris Johnson faces a rebellion from members of his Conservative Party seeking to give Parliament a veto on new agreements. Reaching the deal took more than four days of acrimonious negotiations and represents a victory for German Chancellor Angela Merkel and French President Emmanuel Macron, who had drafted its first version. US Secretary of State Mike Pompeo is also in the UK to discuss China, 5G and a free trade deal with Prime Minister Boris Johnson. We also publish the Brexit Bulletin, a daily briefing on the latest on the U.K. s departure from the EU. Wirecard Woe | German Chancellor Angela Merkel promoted Wirecard during a state visit to China, the latest revelation about the government’s links with the fallen tech darling. “The statement came as Mike Pompeo, the US secretary of state, prepared to meet Boris Johnson and Dominic Raab on Tuesday.Mr Pompeo and his boss, Donald Trump, have reason to be please with their UK counterparts this week, after Huawei was booted out of Britain’s 5G infrastructure following a massive American lobby campaign – and punishing sanctions on the Chinese company.Mr Pompeo wrote on Twitter: “Great to be back in London to reaffirm the special relationship we share with our closest ally.”

What to Keep an Eye On A long-awaited report on Russian interference in U.K. democracy will be published today after being blocked by Boris Johnson since October. Now, a shortage of wooden pallets threatens to derail Britain s cross-border trade with the EU after Brexit. Brexit talks are due to restart today. Not Done A day after the U.K. suspended extraditions and arms sales to Hong Kong due to human rights concerns around China’s national security law, Prime Minister Boris Johnson is under pressure from his U.S. allies and British lawmakers to further toughen his stance on China. Air Combat | The U.K. and Sweden moved a step closer to jointly developing a combat air system, allaying fears that Brexit may stifle cross-border defense cooperation.

Brexit Trade | After leaving the EU at the end of the year, Britain will have to renegotiate trade deals it enjoyed as a member of the bloc.