Open: London Session | Forex, Metals, Oil, Agriculture October 02, 2020



According to Secex, Brazil exported 3.62 million tonnes of sugar in September, up significantly from the 1.71 million tonnes from the same period a year before. Exports from Honduras, Central America’s top coffee producer, totaled 5.504 million 60-kg bags during the 12-month season that ended last month, according to IHCAFE. Traders take monthly delivery on expiring futures contracts they hold in commodities like coffee or sugar. Green coffee exports rose to 221,000 tonnes from 187,300 tonnes.
Arabica coffee futures on ICE lost nearly 4% on Thursday to a two-month low as an outlook for large supplies pressured prices. The decision by the world’s top cocoa producer is in line with a price rise announced by neighbouring Ghana on Sept 24. The two countries account for over 60% of global cocoa bean output.


If you sit and try to hold on for every last penny, for every last dollar, tenants are just going to go somewhere else.” Hirst also discussed the pressures central banks are under to create reflation in an environment of low productivity, low growth, and a weaker dollar during the interview. Record Cash | The ECB s emergency stimulus has propelled excess cash sloshing around the euro area s economy past 3 trillion euros for the first time. Coming Up U.S. and European equity-index futures fell sharply after the president said he had tested positive for Covid, with Asian stocks also down and the dollar climbing.
The Japanese yen, which tends to rally in times of market stress, strengthened to 105.026 a dollar. The dollar and the yen climbed as the news stoked risk aversion. Week Ahead | Euro-area finance ministers will next week settle on their pick for the ECB s soon-to-be vacant executive board seat.


The most significant of these are Pan American Silver (PAAS), First Majestic Silver (AG), Fortuna Silver (FSM), Hecla Mining (HL), and Endeavour Silver (EXK). Its low production costs give it less leverage to silver while higher-cost producers like Endeavour are likely to rise significantly if silver climbs to $30+. Silver is largely a function of inflation expectations, so if it continues to decline then silver will likely fall back below $20/oz which could mean significant losses for Silvercorp.
In the past when silver prices were booming China looked at the possibility of banning silver and gold exports. There is still a lot to like about the company, but I believe outperformance will likely be found in other silver miners. However, now that both companies are profitable, EXK is beginning to outperform SVM since it will gain more from increase silver prices. The company’s valuation has climbed considerably and, with silver prices much higher, its low-production-cost status gives it less of an edge.
Many mining stocks are at long-term highs as investors look to gain leveraged exposure to gold and silver. Of course, a larger decline in silver would likely be a buying opportunity for long-term investors. Silver is very expensive today compared to recent years, though it is still far below its price about a decade ago.


Malaysian palm oil futures were poised for a second consecutive weekly decline as they extended losses, tracking a drop in crude and Chicago Board of Trade soyoil prices. Crude Awakening A falling oil price came roaring back into view on Thursday amid conflicting signals about U.S. fiscal stimulus and concerns about rising supplies from global producers. Oil’s weakness also stands to overshadow the coming quarter for Middle East markets, as current crude prices can’t balance the budgets of the region’s exporters.
Oil prices have slid and high unemployment with a lack of new stimulus sets up a generally deflationary economic scenario. U.S. oil giant Exxon Mobil Corp. also flagged more losses ahead, putting more pressure on its ability to pay a dividend. Brent crude, the global gauge of crude prices, fell 2.5% to $39.91. Crude is now set for its second consecutive weekly decline.

United States

Trump Tests Positive President Donald Trump said via a tweet that he and first lady Melania Trump have tested positive for Covid-19. It also registered on Wall Street, and analysts say that a Bieber collaboration could lift Crocs into another dimension, citing the company’s previous team-ups. This week started with revelations about how little President Trump pays in taxes, and wound up with tens of thousands of jobs wiped out across the global economy.
The potential sell-off can last for few days.It might also impact Trump’s chance of getting elected. Advanced Micro Devices (NASDAQ: AMD) is one of the largest semiconductor companies with a near $100 billion market capitalization.
The information presented below was created by combining the “U.S. Dividend Champions” spreadsheet hosted here with upcoming dividend information from Nasdaq. The good news is the US economy roared back in the 3Q which just ended. President Trump authorized temporary $300 payments, but the money is already running out and Congress is deadlocked on what to do next. President Donald Trump has Covid-19, Brexit talks remain keenly in focus and virus hotspots are emerging again.
Fed Chairman Jerome Powell has admitted the Fed’s lending program for smaller businesses has been challenging.


Today, an EU consultation on how green bonds should be judged comes to and end, paving the way to making a global market worth almost $1 trillion less opaque. Finance Boss | EU lawmakers will get to grill Mairead McGuinness this morning after her nomination to succeed Valdis Dombrovskis as commissioner in charge of financial-services policy. If he doesn t get it, the EU will find itself facing the same dilemmas that kept leaders awake late last night. The proposal, if taken up, threatens to blow open a deal that EU leaders sealed in July.
If the aim was to salvage some of EU s foreign policy credibility, then this summit proves a success. Expect questions on Brexit and the impact of the coronavirus recession on the financial system. We also publish the Brexit Bulletin, a daily briefing on the latest on the U.K. s departure from the EU.