Open: London Session | Forex, Metals, Oil, Agriculture October 29, 2020



Cocoa farming and trade are at the roots of the chocolate industry, and the consistent supply of cocoa plays a critical role in providing us with reasonably-priced chocolate. The chocolate industry relies on cocoa farming for supply of chocolate’s key ingredient. The above graphic maps the major trade flows of cocoa and allows us to dive deeper into its global supply chain. Cocoa beans go through a number of stages before being used in chocolate products.
Based on how much cocoa comes from West Africa, it’s likely that most of the chocolates we eat have a little bit of Cote d’Ivoire and Ghana in them. As a result, the equatorial regions of Africa, Central and South America, and Asia are optimal for cocoa farming. Growing cocoa has specific temperature, water, and humidity requirements. Yet, many cocoa farmers make less than . So where exactly does all this cocoa come from? Corn tumbles.


Also, the dollar index hints at a possible appreciation in dollar, at least for intraday. Until then, the dollar bulls should be cautious.Trade strategyThe rupee, which has been declining gradually over the past few trading sessions, has breached the support of 74. BL Research BureauFaced with resistance at 73.7, the rupee (INR) depreciated on Wednesday and registered a loss of 16 paise against the dollar (USD). Euro-area confidence data and U.S. GDP top the economic calendar.


This decent quarter operationally has set the company up to meet its revised FY2020 production guidance of 420,000 gold ounces, with over 306,000 ounces produced year-to-date. The increased gold production combined with a higher gold price led to record free-cash-flow, and 26% growth in revenue year-over-year. The strong increase in revenue growth was mostly attributed to the gold price, with Alamos’ average realized gold price improving from $1,448/oz to $1,882/oz.
(Source: Company Website) Finally, the company’s Mulatos Operations in Mexico had an outstanding quarter as well, with quarterly gold production of 41,100 ounces, up 26% year-over-year. We’ve finally begun the Q3 Earnings Season for the Gold Miners Index (GDX), and one of the first names to report its results is Alamos Gold (AGI). Given the higher gold grades, Island maintained its industry-leading gold recovery rate of 97%. From a throughput standpoint, Alamos processed 101,400~ tonnes at Island, down 1% year-over-year, but enjoyed grades that were 22% higher at 13.62 grams per tonne gold.
This has placed the Island Gold Mine in a position to meet its FY2020 guidance of 135,000 ounces at the mid-point if we can see another near-record quarter. Therefore, I would argue that the valuation is actually getting quite attractive during this correction, assuming the gold price holds above $1,700/oz. Treasuries were little changed, the yen barely budged and gold actually fell, all suggesting a lack of haven buying at the risk-off move.


As a result, DLNG’s debt service payments are fixed until September 2024 at c. $17 million per quarter or $31,300 per day per annum on a vessel basis. The company’s debt structure allows Dynagas LNG Partners (DLNG) to improve its debt credits and build its balance sheet quarter by quarter. In Europe, the biggest companies set to report include oil major Royal Dutch Shell, brewer Anheuser-Busch InBev, carmaker Volkswagen AG and plane manufacturer Airbus, among plenty of others.
However, the LNG market is very illiquid regarding the sale and purchase transactions. A new X-DF LNG 174,000 CBM carrier is priced at c. $186 million. “The DVL-10M3 rifle’s weight has been reduced to 4.5 kg while it features a barrel length of 500mm. Source: Seeking Alpha Dynagas LNG Partners is in a phase of balance sheet deleveraging.

United States

Facebook, Twitter and other platforms openly use their power to censor pro-Trump news and opinion while promoting anything that makes the president look bad. Trump is also stirring up his rallies by tarring Joe Biden with a slew of views, including on taxes and health insurance, that his opponent does not hold. The sequel was partisan impeachment, a clumsy coup attempt orchestrated by Speaker Nancy Pelosi and Trump haters in Congress, the deep state, and the media.
Russia’s military-modernization efforts indicate that not only is it growing its defense-industrial base but has ambitions to become more dominant in the world as the US supremacy fades. At some rallies, Trump has called Biden a puppet of socialists, while other times saying he s controlled by Wall Street donors. Writing in the New York Post on October 24, 2020, columnist Michael Goodwin listed his reasons for voting for Donald Trump, again.


What could replace it?Virus Update | Macron imposed a new national lockdown until Dec.1, though unlike in the spring, schools and factories will remain open. But with German Chancellor Angela Merkel and French President Emmanuel Macron the latest European leaders to announce stringent new restrictions, the risks from holding fire are rising. Merkel imposed a one-month partial shutdown starting Monday, the toughest restrictions since the end of a lockdown in the spring.
Most economists and investors still think the ECB will wait until December to take action, but they are being put on guard for a surprise.
We also publish the Brexit Bulletin, a daily briefing on the latest on the U.K. s departure from the EU. The feud was triggered by Macron’s characterization of Islam as a religion in crisis. “French President Macron’s anti-Muslim agenda is bearing fruit! Brexit benefits.