Open: New York Session | Forex, Metals, Oil, Agriculture December 01, 2020



Arabica coffee futures on ICE weakened on Monday, slipping from the prior session’s 2-1/2 month high, while cocoa and sugar prices also fell. MARKET NEWS Chicago wheat futures edged higher on bargain buying following previous session’s deep losses, although forecasts of a near record Australian crop and higher Russian exports curbed gains. The surge in corn prices since August, along with an expected increase in the number of planted acres next season, will support demand for LXU’s products going in 2021.


Moreover, the dollar index is showing that the dollar is trading weak. The rupee (INR) last week ended marginally higher at 74.04 versus its preceding week’s close of 74.14 against the dollar (USD). An under pressure U.S. dollar handed back part of its month-end bounce, as investors reckoned on more monetary easing by the Federal Reserve and a gathering recovery elsewhere. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action.
In global markets, gold prices edged higher today supported by a weak dollar. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.19 per cent to 91.69. The dollar index was down 0.05%, making gold cheaper for holders of other currencies. By capping the long-term yields and letting inflation run higher, the Fed will further put pressure on the US dollar. less We come into December with US equities trading just off record highs and the US Dollar broadly under pressure.
There is also a forecast that the dollar will gradually devalue against other currencies.


It is one reason why the gold price realized is much lower than the average gold price for the quarter, which is about $1,908 per ounce. New Gold also has a gold stream obligation with Royal Gold (RGLD) on Rainy River, totaling over $160 million as of September 30, 2020. Details per metal comparing the 2Q and the 3Q: New Gold is producing gold, silver, and copper. The New Afton mine produced 51,315 GEOs and sold 49,179 GEOs (15,955 ounces of gold and 18.2 million pounds of copper) for the quarter.
The gold production was better than the three preceding quarters but still lagging compared to the same quarter a year ago. The company indicated that the Rainy River Mine produced 64,221 GEOs and sold 61,726 GEOs (63,004 ounces of gold and 102,814 ounces of silver) for the third quarter. Image: Rainy River mine Courtesy: Royal Gold The Canadian-based New Gold, Inc. (NYSEMKT:NGD) released its third-quarter results on November 5, 2020. New Gold posted revenue of $173.7 million for Q3’20, up 3.1% from the same quarter a year ago and up 35.2% sequentially.
Source: Presentation Q3 Gold production is now expected between 284K Oz and 304K Oz, with copper production unchanged at 65-75 Mlbs. The gold price realized in 3Q’20 was $1,613 per Au Oz and $2.99 per Cu Lbs.


Oil production rose 61,000 bpd in North Dakota and 315,000 bpd in the offshore Gulf of Mexico, offsetting cuts in Texas, where output fell 60,000 bpd. The company expects 2021 average production of 740,000 to 780,000 barrels of oil equivalent per day, about 10% higher than the midpoint of the forecast range for 2020. The data exclude trader positions in the NYMEX financial crude oil futures contract, which is normally included in our aggregate calculations. Malaysian palm oil futures reversed early losses to trade 0.6% higher, tracking soyoil gains on the Chicago Board of Trade and as supply remains tight.
According to a Reuters poll, US crude stocks are likely to show a draw of 2.27 million bbl for the week ending the 27th of November. This includes China’s top chipmaker, SMIC, and oil and gas producer CNOOC. Bank of America Says It Won t Finance Oil and Gas Exploration in the Arctic The announcement comes after opposition from environmentalists.
Revenues from Oil and Gas are tumbling and – let’s be blunt – unpopular. Separately, six analysts polled by Reuters estimated, on average, that crude stocks likely fell by 2.3 million barrels in the week to Nov. 27.
Further, the entire oil industry will watch any changes on energy sanctions, particularly with Iran.

United States

That was the day Pfizer (PFE) announced its positive vaccine news, which significantly raised investor hopes that the US economy would begin to get back to normal next year. The president and his lawyers have also been calling for Republican-controlled legislatures in swing states to ignore Biden’s popular vote victories and name competing slates of Trump electors. Pfizer said that an authorization is expected to be in place already during December (and they attend an FDA advisory commitee meeting on the10th of December in the US).
Lawmakers Reach Deal on Outline for Annual Spending Bill Among the outstanding items are the $2 billion for Trump’s border wall in the Senate version of the bill. The Fed is set to maintain an accommodative monetary policy to help drive growth. The most liberal lawmakers want to restore and even toughen post-financial crisis rules weakened during the Trump administration. But with the incoming Biden administration likely to re-allocate the funding, it’s less a do-or-die issue for Democrats this time.The wild card remains Trump.
The Fed made some huge changes already to its monetary policy mandate. The outcome of the elections in the United States also contributed to this, foreshadowing an end to the uncertainties of the Trump era. In other words, it is fair to assume that the cooperation between the Fed and the Treasury will increase during Biden’s administration, leaving no room for divergent opinions.


On the Iran Nuclear Deal, Israel Gets a Vote The chief executive’s interview inadvertently highlighted two points that should be discomfiting to the Hong Kong government and Beijing.


“Boris Johnson’s Government has failed to use this latest lockdown to put a credible health and economic plan in place,” Starmer said in an email. With time running short to ratify any agreement before the U.K. leaves the EU single market on Dec. 31, momentum is building for a pact this week. In this EU-wide framework, interbank fixing rates such as Stibor much be approved according to standards set by the regulator otherwise they need to be discounted. I will continue to say No to Independence, but if it’s going to happen, let’s learn from the mistakes of Brexit and make it happen well.
Despite the positivity, Beaune said the EU and the U.K. were still “very far” from an accord. Markets are also waiting for a potential Brexit trade deal.Download PDF 16 Click to enlarge Notes: This post originally appeared on the BlackRock blog. Core HICP inflation remained very weak in November, supporting universal expectations of a December ECB easing package.
Scotland in the EU would become another small country to be side-lined, and a stick for Brussels to beat England with. By now, I have built up excellent skills and experience in analyzing macroeconomic and political developments in Europe, the Eurozone and Germany, including ECB watching. The global reformation of interbank fixing rates manifests itself on an EU-level through the Benchmark Regulations.