Open: London Session | Forex, Metals, Oil, Agriculture September 14, 2020



A USDA report released Friday showed that export sales of soybeans to China totaled 1.608 million tonnes in the week ended Sept. 3, the latest reporting period. The volume is down due to a decline in corn sales, to 608,000 tonnes from around 1.9 million tonnes by the same date last season. Weekly corn export sales to China were 1.137 million tonnes. Wheat imports for the month totalled 149,337 tonnes, up from 91,965 tonnes in July 2019, the figures show.
During that time, the United States and Brazil will discuss ways in which they can open up their respective ethanol, soy and corn markets, the statement said. Raw sugar futures closed slightly up on Friday on ICE in a late recovery after hitting a 1-1/2 month low earlier in the session. During that period, sugar prices rallied to a seven-month top.


Dollar indexThe dollar index gained by about 0.7 per cent last week as it closed at 93.33 versus the preceding week’s close of 92.72. The dollar index has lost more than 4 per cent so far this quarter. The rupee (INR) last week ended at 73.53, with a loss of 39 paise against the dollar (USD). The dollar was mostly steady against the yen at 106.11 , a long distance from its low this year of 101.2. Euro’s Strength | The ECB is facing a tough predicament with the euro s recent rise to the strongest level in more than two years.
less Rupee rises 14 paise to 73.39 against US dollar in early trade. Also, the dollar index is below the key resistance. The euro was flat at $1.1849.


The value of gold holding went up to $37.5 billion, an increase of $0.3 billion. Gold was firm, with spot prices at $1,949.7 per ounce.


Meanwhile, global oil benchmark Brent crude was trading 0.35 per cent lower at $39.97 per barrel. Libyan oil exports have steadily fallen over the years on account of infighting and attacks on oil production, storage and export facilities. Brent crude climbed 0.5 per cent to $40 per barrel. Sources told Reuters this week that President Donald Trump has instructed his Environmental Protection Agency to deny dozens of requests from oil refiners for retroactive waivers.
The Aussie was barely changed at $0.7285 while Sterling was a tad higher at $1.2823.In commodities, US crude jumped 0.7 per cent to $37.58 a barrel. From oil to credit spreads to bond yields, maybe even stocks, there does seem to be a palpable spreading of concern now in September as to those possibilities. Given that Libya is not mandated under the OPEC+ cuts to reduce production, if the blockade on exports is removed, export volumes could pick up. To access the Weekly NWE Gasoline report, click here (link to be pasted on Eikon search) You can access the full report here.
On Monday morning, Brent was seen at $39.95/bbl, up 0.3% while WTI was seen at $37.53/bbl, up 0.5% at 0515 hrs GMT.

United States

Donald Trump was accused by a former top intelligence official of playing into Russia’s hands by claiming his opponents are trying to rig the U.S. election. Talks on the deal structure continue, and it’s unclear whether it will be approved by the Trump administration, where some want a complete shutdown or outright sale of TikTok. Seasonally-adjusted, the Fed in its latest figures estimates that the aggregate balance of revolving consumer loans declined in July 2020 by a small amount.
The political logic is similar to President Trump s continuing attempts to build a border wall with Mexico, and spar with China. Analysts on Wall Street expect Microsoft to turn out an average annual EPS growth of 14.0% over the next five years. What took Wall Street banks so long to appoint a female CEO, the editors of Bloomberg Opinion ask. The top retail card partners for the bank are Walmart (NYSE:WMT), Gap (NYSE:GPS), J. C. Penney (OTCPK:JCPNQ), Lowe’s (NYSE:LOW), and PayPal (NASDAQ:PYPL).


The Europeans will also praise China s vow to help fight climate change, while pressing Beijing to be more ambitious in cutting greenhouse gases. The call will be another test of the bloc s carrot-and-stick approach toward a more economically and politically assertive Beijing.


Justice Secretary Robert Buckland said he may quit over the plan, which would let the U.K. unilaterally override parts of its divorce deal with the EU. Prime Minister Boris Johnson said on Saturday that a planned bill, which would breach a divorce treaty with the bloc, was needed to protect Britain’s integrity. Meanwhile, the European Parliament has threatened to scupper any UK-EU trade deal if the bill becomes UK law. It has also enraged its counterparts in the EU, with which it has to negotiate a new trade agreement by the end of this year.
The EU has warned the UK it could face legal action if it does not ditch controversial elements of the Internal Market Bill by the end of the month.
Mitsotakis has demanded that the EU take more responsibility for managing migration, as authorities promised to relocate 12,000 migrants and asylum seekers left homeless by a recent fire. If negotiations on a settlement begin, the summit of EU leaders next week will be a much calmer affair. What determines whether there will be a deal or not is the readiness of the EU to accept a compromise on state aid.
The moment the EU tried to make a power grab for UK state-aid policy, the negotiation turned into an ugly battle of egos. German Finance Minister Olaf Scholz was out with another EU bluff on Saturday: No-Deal Brexit Would Hurt Britain More Than EU.