Open: London Session | Forex, Metals, Oil, Agriculture September 30, 2020



The trade expects both Sept. 1 corn and soybean inventories, effectively ending stocks for the 2019-20 marketing year, to land within 0.2% of what USDA projected earlier this month. In the main cities, bars and coffee shops must close at 10pm and gyms and other sport facilities are asked to close entirely for at least two weeks. Raw sugar futures on ICE rallied on Tuesday after sharp losses in the previous session as the Brazilian currency recovered partially and the first-month contract nears expiration.
In the last 20 years, that has happened once for corn and never for soybeans. More competition in coffee.


The dollar index fell 0.3%.. Gold is likely to rally over the next year based on changes in the dollar and momentum in the commodity. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. Most investors are aware of the clear correlation between changes in dollar and changes in gold. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.04 per cent to 93.92.
At the interbank forex market, the domestic unit opened at 73.81 against the US dollar, then gained ground and touched 73.79 against the American currency. As the dollar falls, gold tends to rise. Moreover, month-end dollar bids and equity-related outflows would weigh on market sentiments. One of these fundamentals is the current change in the dollar. On Tuesday, the Indian rupee settled at 73.86 against the US dollar.


In fact, gold futures tend to be so static that many textbook examples of how to price a futures contract utilize gold as the case study. At present, the gold futures curve shows a fairly consistent gain of around 2% per year. Not only is this the case, but gold also exhibits strong momentum: since it has been increasing over the past year, it is likely going to keep increasing. Titan also stands to gain from the financial distress faced by smaller jewellers following the lockdown India’s biggest gold jeweller is emerging stronger from the coronavirus pandemic.
It is my belief that now is a strong time to buy gold and that DGP is likely going to deliver positive returns over the next year. I believe the fundamental picture is strongly supportive of higher gold prices over the next year. It is my view that DGP’s dynamic rolling component does not deliver in gold futures to the same degree of benefit seen in other commodities. The reason why I say this is that gold’s futures curve is actually fairly predictable compared to other commodities.
Over the past year, we have seen gold rally by around 25%. DGP’s methodology tracks gold on a 2x leveraged basis using a dynamic rolling methodology.


Brent crude futures, the global oil benchmark, fell 1.15 per cent to USD 40.56 per barrel. Oil is on track for its first monthly decline since April amid ongoing concerns about demand. U.S. crude fell 1% to $38.92 per barrel and Brent settled at $41.03.

United States

Timeline of events around the US election The US presidential debate was “contested” in six 15-minute timeslots on each of the following topics. Each week, well over a million readers turn to John Mauldin to better understand Wall Street, global markets, and the drivers of the world economy. Having said that, it is still clear when watching the debate, that Trump gains the most from 1-to-1 debates against Biden. Biden-Trump debate on tap.Macro Market Quick Take – September 29, 2020 Democratising trading and investment for more than 25 years.
The US outperformance narrative, which has generally characterized the Trump era, will therefore likely be allowed a final salute into the election date. The two sparred over topics ranging from health care to the economy to their respective families, with Biden calling Trump a “clown” and the president insulting his opponent’s intelligence. Trump’s biggest knock-out of the night came during theme number 5 on race protests as he kept asking Biden to name just one law enforcement union endorsing his ticket.
Mnuchin said the PPP program has played a role in enabling firms to continue paying their rent so landlords can pay their mortgages.
Biden-Trump debate on tap. Notably, Trump also declined to condemn far-right white supremacist groups during a heated exchange on race relations.


Brexit Moves | The U.K. sought to unblock stalled trade negotiations with the EU by submitting a new round of proposals on state aid rules. Elsewhere, EU leaders are set to call for a rebalancing of the bloc’s relationship with China which would result in greater reciprocity between the two sides. Following a successful pilot test this month, national apps will connect to the EU’s gateway server in October, allowing authorities to better contain the virus when people travel internationally.
More Chaos Prime Minister Johnson is also bracing for defeat in Parliament over his controversial plans to rewrite the Brexit withdrawal agreement and break international law. It’s also demanding that the EU official charged with upholding those norms be sacked for calling the country a “sick democracy.” By awarding so much less to the EU than the U.S. won, the ruling gives Washington the leverage in any negotiations to resolve the case. Merkel’s Foe | Chancellor Angela Merkel s long-time political adversary is working the phones these days, and the effort could shape the future of Germany.
Tracking Covid | The EU’s effort to make Covid-19 contact-tracing apps work seamlessly across borders is making headway. We also publish the Brexit Bulletin, a daily briefing on the latest on the U.K. s departure from the EU. If there’s no solution to the spat, the threat of delays in the flow of much-needed EU funds to countries such as Italy and Greece will become very real.