Open: New York Session | Forex, Metals, Oil, Agriculture August 13, 2020

Agriculture

The crop outlooks, which also included average yields for both corn and soybeans as the largest on record, topped trade expectations. MARKET NEWS Chicago corn rose to its highest level in more than two weeks with short-covering driving up prices, although expectations of an all-time high U.S. crop capped gains. It produces biomass-based diesel from a range of feedstocks, including inedible corn oil, used cooking oil, soybean oil, canola oil, and inedible animal fat.
Interestingly, the USDA’s August corn crop forecast has been above the trade for 5 years, but this year’s difference was only 104 million bu. (SOYB) The USDA’s record US corn output of 15.278 billion bu came from strong yields across the Midwest lead by IL (207) and IA (202 bu). Given the recent high crop ratings, the market was expecting strong August US corn & soybean crops this week. The USDA didn’t disappoint with record yields and record/ near record output for US corn and soybeans this month.
Industry analysts expect that the storm was much more detrimental to corn than soybeans, which are now flirting with record harvest prospects. It also covers the commodities market daily focusing on in-depth technical developments in GOLD, CRUDE OIL, SILVER, CORN & WHEAT. Growers in the south American grains powerhouse have nearly finished planting this year’s wheat crop, with harvesting expected in December and January.

Currencies

The dollar is on its back foot, slipping against all the major currencies but the New Zealand dollar. Brent crude futures, the global oil benchmark, fell 0.18 per cent to $45.35 per barrel.“Asian currencies were trading mixed against the US dollar this morning. The dollar traded above JPY107 for the first time nearly three weeks yesterday, but could not sustain the move today. MARKET NEWS Gold rose on a softer dollar, consolidating further above the key $1,900 level after a dramatic retreat earlier this week from an all-time high.
The New Zealand dollar is trading within the ranges seen yesterday, but look for a retest on the low it saw near $0.6525. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. The dollar fell against a basket of currencies, while spot gold firmed up. The U.S. dollar fell against a basket of currencies, while spot gold firmed up.
Both gold and silver have benefited from cheap money, a weak dollar and stronger oil prices. Adjusted earnings were reported at $61 million, or $3.09 per share, or closer to $2 per share if little over a dollar in stock-based compensation is adjusted for.

Metals

The property currently has measured and indicated resources of 1.06 million gold ounces and an additional inferred gold ounces of .74 million. Currently, there were no producing Northwest Territories gold mines, but there are several gold mining companies with exploration and development prospects. Source: Seabridge Gold presentation At current gold prices, the project has an NPV of $1,285 million and a payback period of 4.2 years. If you want to check out gold mines in Canada’s other two territories, you can read about Nunavut and Yukon’s gold mines.
Within the Indin Lake Gold Property, there are several different high-grade gold projects that the company is focusing on. Source: Gold Terra Corp presentation As of November 2019, the project has inferred mineral resources of 735,000 gold ounces. Nighthawk Gold is the owner of the Indin Lake Gold Property located in the Northwest Territories and is three times the size of the Timmins camp in Ontario.
Gold Terra Resource Corp. is the owner of the Yellowknife City Gold project in Northwest Territories, which sits just 5-10 miles from Yellowknife.
Instead, the gold bulls drove the prices directly into unknown technical terrain and have so far pushed prices up to a record high of US$2,075. Last Friday, following another record run with new highs at US$2,075, gold prices pulled back somewhat more significantly to US$2,015 during the day.

Oil

The report predicted world oil demand would decline by 9.06 million bpd this year, more than the 8.95 million bpd decline expected a month ago. US fuel demand also reportedly rose to 19.37 million bpd last week, the highest since March while crude output decreased to 1.7 million bpd from 11 million bpd. Oil prices dipped after the International Energy Agency lowered its 2020 oil demand forecast. In its monthly oil market report, the IEA forecast a sharper contraction in global demand for 2020 for the first time in several months.
The agency also revised down its 2021 global oil demand estimate by 240K barrels per day to 97.1M bpd. The IEA similarly lowered its 2020 oil demand forecast following unprecedented travel restrictions. Wednesday s weekly report showed crude inventories fell by 4.5 million barrels, more than the 2.9 million barrels dip according to a preliminary Reuters poll. Iranian forces used two ships and a helicopter to board a Liberian-flagged oil products tanker near the Strait of Hormuz for four to five hours yesterday, the U.S. said.
COMMODITIES Crude oil update ahead of EIA’s weekly inventory report Democratising trading and investment for more than 25 years. Global oil majors are looking at expanding foothold in the vast Indian market, where local refiners are investing billions of dollars to boost their petrochemical capacities.

United States

Donald Trump maintained unsubstantiated attacks on mail ballots on Wednesday, which he said would produce an election that was “one of the greatest frauds in history”. Bond yields are a little lower across the board, with the US 10-year pulling back three basis points to around 0.65% (SPTL). Bond yields are a little lower across the board, with the US 10-year pulling back three basis points to around 0.65%. “Until coin circulation patterns return to normal, it may be more difficult for retailers and small businesses to accept cash payments,” the US Mint said in late July.
This episode reminds me of something my first boss on Bay Street (Canada’s Wall Street) told me years ago, “bulls make money, bears make money, pigs get slaughtered.” The top line was below the level Wall Street would like to see, but adjusted profit appeared to be remarkably strong, as it even surpassed the consensus estimate. As political scientist Dan Drezner said: It s impossible to imagine Donald Trump uttering anything like this sentiment.
All three of the major US stock indices jumped yesterday, led by the Nasdaq Composite, which closed the day out 2.1% higher with its year-to-date gain now at 22.7%. That could make for some fiery economic and political headlines in the weeks leading up to President Donald Trump s bid for re-election in November. But Mnuchin said it was Pelosi who refused to compromise, and the negotiations remained in limbo with no sign of the stalemate easing.

China

Remember when local CCP officials and top party health officials in Beijing tried to blame multiple COVID-19 outbreaks on imported shrimp (then later, salmon)? It’s the strongest signal yet that the manufacturing industry expects Washington-Beijing trade hostilities to fragment global supply lines. However, a small item in its balance sheet caught analysts’ attention, and some argue this could represent bond purchases by the PBOC. This is either ignorance of how YouTube works or indifference to donors money ending up in Beijing or Moscow s pockets, said Ben Dubow, chief technology officer of Omelas.
Beijing has bought only 5% of the energy products needed to meet the Phase 1 first year goal of $25.3 billion.

Europe

The U.S. hit Germany and France with extra tariffs on some goods to squeeze the EU into settling a dispute over illegal subsidies to Airbus. An escalation will likely come in the fall when the EU is expected to win WTO approval to level its own tariffs over subsidies to Boeing (NYSE:BA). Said French Finance Minister Bruno Le Maire: If there isn t a rapid resolution, the EU must prepare to retaliate, to retaliate firmly and in a united way. Outgoing member Lyndsay Hopkins, who posted a picture of her card, said: “I was disappointed in Theresa May but Boris Johnson is on another scale.
Conservative MPs are putting pressure on Boris Johnson to beef up his much-criticised plans for the climate emergency, including an earlier ban on fossil fuel cars. During the same eight-week run, the ECB’s balance sheet has grown by around 755 billion euros. News of his departure came as Boris Johnson was to meet his National Security Council.

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