Open: New York Session | Forex, Metals, Oil, Agriculture August 17, 2020

Sugar futures on ICE touched a five-month peak on Friday at 13.28 cents per pound, as sentiment remained positive despite a possibly record output in top producer Brazil. Raw sugar futures on ICE rose to a five-month high on Friday, driven by fund-buying against a backdrop of diminishing production outlooks in Thailand and Russia. But Trump also continues to express that desire to do business, as he did on Saturday, when he cited recent Chinese purchases of corn, cattle and soybeans.
French consultancy Strategie Grains forecasts this year’s soft wheat harvest in the European Union and Britain at 128 million tonnes, 13% down on 2019. Today it looks a little softer, perhaps coming down off the sugar high of a 20% bump in one-day gas prices. Crop Watch corn and soybeans, including those in Iowa.

Last week, the rupee (INR) ended largely flat at 74.9 versus preceding week’s close of 74.93 against the dollar (USD). Hedge funds turned bearish on the dollar for the first time since May 2018, indicating the currency’s summer slump may be prolonged. Once the ten stocks are determined, an investor invests an equal dollar amount in each of the ten stocks and holds them for the entire next year. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 93.08, lower by 0.01 per cent.
This relative improvement is mostly due to U.S. dollar weakness which is typically favorable to EM markets and especially the Turkish market. Your maximum loss is the dollar value between strike prices used less the premium credit earned, which are all reflected in the +5% move. If the US dollar weakens before maturity, Thermo will have to convert more US dollars to pay off these notes. The U.S. dollar edged lower and oil prices declined.
Gold prices were higher helped by a weaker dollar. If you see the US dollar getting much stronger all of a sudden, that is going to be bad for gold.

However, due to the COVID-19 impacts, the guidance was reduced to 655,000-685,000 toz of gold equivalent, consisting of 365,000-385,000 toz gold, 21.5-22.5 million toz silver, and 23,000-24,500 toz palladium. After 190,000 toz gold and 2.15 million toz silver are delivered, the stream will be reduced to 3.25% of gold and 50% of silver produced at Marmato. This applied for Franco-Nevada (FNV), Royal Gold (RGLD), Sandstorm Gold (SAND) and Osisko Gold Royalties (OR), and this applies also to Wheaton Precious Metals.
This situation is reflected in the volume of produced but not yet delivered metals, which declined by 8,900 toz gold, and 1.8 million toz silver. Wheaton was able to maintain relatively stable sales volumes, although its attributable gold equivalent production declined by 23.2% (from 182,533 toz to 140,112 toz). Wheaton will pay Caldas Gold $110 million and ongoing payments of 18% (later 22%) of the prevailing gold and silver spot prices.
Marmato should be able to produce 165,400 toz gold and approximately 100,000 toz silver per year on average (an article about its recently released PFS can be found here). The higher gold prices were able to only partially compensate for the lower attributable production volumes. The original guidance expected attributable gold equivalent production of 685,000-725,000 toz. While I have my doubts that bitcoin will ultimately replace traditional inflation hedges like gold, it is one of the most interesting trades one can make at this juncture.

The Oklahoma shale driller filed for Chapter 11 bankruptcy protection on Sunday, the latest U.S. energy sector casualty in recent months as COVID-19 crushes oil demand. Saudi seaborne crude exports for last week were seen at 39.4 million bbl (5.6 million bpd) compared to the revised 49.7 million bbl (7.1 million bpd) the week prior. According to the deal, 2020 target for energy products are at $25.3 billion, which includes Crude oil, LNG, coal and other energy products.
Lower demand means its oil sands operations will toil away at less than efficient levels. Crude oil prices may find a near-term lift as risk appetite firms across global financial markets.
However, Refinitiv Oil Research believes this surge in US crude shipments is mostly to stay in line with their trade deal signed earlier this year. As a result, Canadian oil sands producers swamped its exit pipeline capacity and led to a glut of Western Canadian Select (“WCS”). Malaysian palm oil futures rose, tracking stronger rival soyoil on the Dalian Commodity Exchange and Chicago Board of Trade, but lower August exports so far capped gains.
This is just as true for Canadian oil sands producers as it is for L-48 frackers. Other factors are the apparent economic and social problems, not least due to Riyadh’s own adventures on the oil market and the coronavirus crisis.

In terms of the US market, the groups BetMGM JV with MGM resorts (MGM) can provide the necessary foothold to gaining market share in the US sport betting market. Last week, it announced that it may seek legal action against President Trump’s executive order but it is unclear if management intends to follow through. “We will hold off on any investment or sourcing on the US market,” he said. less With only 56 trading days and fewer than 80 calendar days to the election, the Deep State camps seeking to torpedo Trump’s re-election have reached the do-or-die point.
President Trump is quite known for saying something outlandish, only to never act upon that statement and later act like it really never happened. “Well, we’re looking at other things, yes,” President Trump said without providing additional details. President Donald Trump and his petroleum-industry allies fell into near perfect agreement with climate activists and environmental groups on one thing: Harris is an aggressive crusader against fossil fuels.
Shares of Alibaba trading on the NYSE during Monday’s premarket session slumped 120bps to $251 following President Trump’s comments on Saturday about exerting more pressure on Chinese-owned companies. Gerrit De Vynck If you read one thing On Friday, President Donald Trump ordered the Chinese owner of the popular music video app TikTok to sell its U.S. assets. U.S.-China latest: Trump said he may pressure Chinese-owned firms like Alibaba.

Chinese President Xi Jinping urged citizens last week to put an end to the country’s “shocking and distressing” food-waste problem, including through legislation. There’s been an early attempt to rally stocks on Monday, this after the PBOC injected more liquidity into the banking system.

Boris Johnson said councils in England would have the enhanced powers from Saturday, after he set out new details for “a significant return to normality” by Christmas. The ECB and Eurozone stimulus plans end up as massive subsidies to low productivity with collateral damages to high productivity sectors in the shape of higher taxes. Another round of talks on a trade deal between the European Union and the U.K. is scheduled to start tomorrow in Brussels, with fisheries among the main sticking points.
Source: NY Times Under such conditions, it’s hard to imagine that the EU, Canada, China, the Bahamas and many other countries will lift their current ban on American travelers. German Chancellor Angela Merkel meets with President Emmanuel Macron on Thursday in France, as they seek to calm territorial tensions between Turkey and Greece in the Eastern Mediterranean. The ECB has bought bonds from Shell, Eni, Repsol, OMV, Total, Siemens, Daimler AG, BMW, Volkswagen, Renault etc.