Open: London Session | Forex, Metals, Oil, Agriculture September 01, 2020



That includes 17.5 million tonnes of wheat, 26 million tonnes of corn and 3.3 million tonnes of barley. Statscan pegged the all-wheat harvest at 35.7 million tonnes, up from last year’s 32.3 million and slightly exceeding the average trade expectation. Europe s wheat crop shows mixed results as harvests near completion Wheat harvesting is ending in the largest European producers with greatly differing results, observers said on Monday. The U.S. Department of Agriculture has forecast very strong domestic corn use and exports over the next year, which makes sense as the latest outlook includes a record harvest.
Corn in surrounding areas looks good and USDA called for record yield potential in its reports last week. Wheat: Winter Wheat markets were higher last week after another choppy week of trading. Wheat has traded in a choppy fashion all week as the market tries to decide which way Wheat prices are going here and overseas. Arabica coffee futures prices rose to the highest in eight months on ICE on Monday and cocoa futures touched a seven-month peak as investors continued to favor agricultural commodities.
Soybean oil remained the largest biodiesel feedstock, with 747 million lbs used in June, or about 66 percent of the total. The US weather is considered mixed for Soybeans with cooler temperatures and some rain in the north, but dry conditions further to the south.


Dollar Decline Stocks are mostly drifting today, with the real action in the markets again happening in the dollar. As a result of this shift, Ricchiuto said tighter labor markets, higher inflation levels and a lower dollar could become the new normal in the coming years. Vaccine news often lifts markets.The dollar edged lower against a basket of major currencies early on Tuesday. The weaker dollar is happening. Germany is more optimistic on the economy, the dollar is weakening and Apple is revving up iPhone plans.
Finland’s Treasury said there aren’t enough green projects in the euro region’s only Nordic member to justify issuing green bonds. The euro led the charge against the beleaguered greenback and approached the closely watched $1.20 level. As Cormac Mullen explains below, the euro’s strength is contributing to the relative underperformance of European stocks.


According to Silver, both these assertions were almost entirely lacking in evidence, to the point where they’re more superstitious than empirical. Silver took to social media on this issue Monday.


At the end of the day, if you’re not making money from producing natural gas, then you likely will slow or stop natural gas production. Given the fact that natural gas futures are broadly in contango, and given the fact that futures converge, KOLD is benefiting from roll yield. This key feature of natural gas futures curves means that KOLD is actually rewarding long traders in the ETF through time. Total production was down 5% year over year as the company shut in some of its heavy oil Peace River production because of coronavirus-induced depressed oil prices.
Natural gas prices have rallied too far and too fast, which suggests a sell-off in the short run. From a high level, KOLD is fairly straightforward: it is short natural gas futures on a twice-leveraged basis. In fact, over the past month, we have seen the price of natural gas increase by over 50%. However, the recent strength in natural gas tells me that investors should consider waiting for a few weeks prior to buying into the commodity.
The largest change at work in the natural gas balance is production. Let’s start this piece off by examining the past few weeks of trading action in natural gas.

United States

Ricchiuto said his initial reaction to Powell’s comments was that it has taken the Fed a long time to recognize an important shift in the U.S. economy. With the Fed being the only game in town, we’re looking for them to keep the economy going with inflation targeting and employment targeting. Last week, Federal Reserve Chairman Jerome Powell said the Fed will be making a subtle shift in the approach to its 2% inflation target. Since the 1980s, Ricchiuto said the Fed has been operating under the assumption that the biggest risk to the U.S. economy is hyperinflation driven by undersupply.
“In a world of excess demand, the Fed’s responsibility is to take away the punch bowl before the party gets started.
But the reality is that since the financial crisis in 2008, inflation levels have spent the majority of the time well below the Fed’s 2% target. While the Fed remains on side, and keeps the economy from inflicting any new unpleasant shocks, the same trades keep working. Over the past ten years or so, there has just been too much money available as the Fed became more generous through three rounds of quantitative easing and more.
He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post. In the US, the Trump administration is already mulling an additional $25 billion support package for the industry.


Emmanuel Macron said his visit to Lebanon will help turn a page in Beirut as the city struggles to recover from the port explosion earlier this month.