Open: New York Session | Forex, Metals, Oil, Agriculture December 11, 2020



The government also lowered its forecast for global stockpiles of soybeans due to a reduced crop in Argentina following a months-long dry spell in that key export country. The World Board made some modest soybean and wheat demand updates while leaving corn’s balance sheet unchanged from last month. Given the trade’s enthusiasm going into this month’s report, the corn and bean markets were a bit disappointed that this year’s ending stocks weren’t reduced by pre-report expectations.
According to industry group Unica, mills crushed 8.73 million tonnes of sugar cane late in November, 19% less than in the similar period a year earlier. MARKET NEWS Chicago soybean futures rose, although the market was poised for a second straight weekly loss as a key U.S. report showed a smaller-than-expected reduction in supplies. Chicago wheat prices extended gains after Reuters’ report on Thursday, as Russia is one of the world’s largest wheat exporters. October’s record US soybean crush did prompt the World Board to up its domestic demand by 15 million bu to 2.105 billion this month.
The size of January’s final US crop and impact of La Nina on S. America’s corn output (Argentina sliced 1 mmt) remain major market factors going into 2021. This was not the case for wheat however when both the US and World ending stocks were reduced by the USDA. The USDA continued its measured approach in their US corn supply/demand update.


The problem occurred when I began chasing and adding dollar after dollar to my positions. Depreciating on the back of a resistance, the rupee (INR) settled the last session at 73.66 versus its Wednesday’s close of 73.56 against the dollar (USD). They’re putting money on surging import costs, exacerbated by a further slump in the pound — it’s already slid about 1% versus the dollar — driving consumer prices higher. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.12 per cent higher at 90.93.
MARKET NEWS Gold edged up as the dollar held near a two-and-a-half-year low, offsetting concerns over delays in a U.S. coronavirus package. Between some ECB optimism, mostly better data, declining virus cases and broad-based US dollar weakness, EUR/USD has fundamental support for further gains. Both the US Dollar and Treasury yields were down for the day, with declines in the former usually beneficial to commodity prices.
At the interbank forex market, the domestic unit opened at 73.65 against the US dollar and witnessed an intra-day high of 73.56 and a low of 73.71. On Thursday, the rupee snapped its two-day winning streak to close 9 paise lower at 73.66 against the US dollar. What if you bought equal dollar amounts of each of these shares, and bought optimal, or least-expensive puts on them to limit your downside risk?


That turns out to be four years of global gold mine supply totaling 440 million or 40 years of global silver mine supply of 32 billion oz. In global markets, gold prices edged higher today as muted US jobs data spurred concerns about swift economic recovery. Later on in 2008, he began researching areas of the gold and silver market that, curiously, the majority of the precious metal analyst community have left unexplored. However, gold prices struggled to edge higher in Indian markets amid muted global trends.
As well he is publishing his bi-weekly comprehensive for his numerous international readers focusing on Gold, Silver, Mining, commodities and cryptocurrencies. We provided many principles and data about Silver over the last two years to shed light on a possible bull run in Silver. He writes a bi-weekly in-depth analysis for one of Germany´s largest gold and silver retailer the “pro aurum group”. Ahead, crude oil and gold prices are eyeing preliminary US University of Michigan Sentiment data where the survey is expected to dip to 76.0 in December from 76.9 prior.
Gold prices are trading flat at Rs 49,088 per 10 grams.
He is well known for combining technical, fundamental and sentiment analysis into one accurate conclusion about the gold market.


Malaysian palm oil futures tracked rival oilseeds and crude oil higher, although slowing exports kept the benchmark contract on track for its first weekly drop in three. This does not bode well for oil demand, with the EIA showing a bigger than expected jump in crude oil stocks in the latest week of data. A recent proposal to add the main U.S. export price, WTI Midland, to the global oil benchmark from 2022 is a testament to shale oil’s importance in global supply.
Fossil-fuel companies of all shapes and sizes have overinvested in recent years to create gluts of oil, gas, liquefied natural gas and even refineries. SOCAR Trading received a right to load some 500,000 tonnes of oil from the Okarem oil field in 2021. Citadel, led by Chicago billionaire Ken Griffin, benefited from gains across the commodities business in oil, power, natural gas and agriculture markets this year, the people said. Historically, significant underinvestment in drilling has prompted a price spike when demand eventually rebounded, given the long lead time to find and develop new oil sources.
Within the Oil and gas industry, 42.7% of the accommodations market is owned by the company. Given the uncertainty around the future of the oil and gas industry, the addition of a diverse, yet complementary revenue stream should only boost Geospace in the future. The company mainly serves the oil and gas sector but also works with the government to provide premium accommodations.

United States

The Fed is likely to decide on a Twist to asset purchases next week but the risk picture is tilted towards no action at all. Despite the talk of funding the federal government and possible government shutdowns, there is still over $1.5 trillion in the federal government’s bank account at the Fed. In contrast, the consensus forecast implies the Fed is likely to be endorsing future tightening moves next year, or that the bond market will ignore the Fed.
Since the Fed cannot influence short-term economic developments via monetary policy, why should the Fed then add stimulus via Twisting asset purchases just due to a tough winter? That said in the near term, interest in these companies especially Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) may likely stay elevated on account of the upcoming seasonal tailwinds. In light of the company’s success, it announced that, effective March of next year, it would be increasing its price in the US from $6.99 per month to $7.99.
“The Fed’s reinforcement of no hikes in 2023 via the dot plot could push out timing of rate hikes priced in the market, further supporting curve steepening. In due time, as the US is topping the rolling two week new cases as well as current ICU hospitalizations per capita. The Fed is likely to act in December with an increase in the duration of the asset purchases as was also hinted by e.g. We also think that the Fed intends to launch a set of guiding principles on how long the asset purchases will run for.


Global Headlines Staff member held | Authorities have detained Haze Fan, who works for Bloomberg News in Beijing. Chinese authorities detain Bloomberg News Beijing staff member.


Five Things Follow Us Get the newsletter No stimulus deal yet, no Brexit deal likely, and experts agree on Pfizer vaccine. Is this a sign the EU has now made the mental adjustment to the prospect of Britain leaving without a deal?Thirdly, time is running short. These small but important adjustments tell us that the ECB on balance is less pessimistic but still plan to keep monetary policy easy for a very long time. It s typical for EU discussions to appear to be at the point of falling apart moments before a deal is finally struck.
European markets have opened in the red as investors dial down their risk as Brexit negotiations near a critical point ahead of Sunday’s deadline.
At least the path ahead for the EU’s historic fiscal spending effort is looking less thorny. The EU says that, in return for a no-tariff trade agreement, the U.K. will need to keep up with its changing regulations. That is aimed at protecting the integrity of the EU s single market, and is something Boris Johnson refuses to do. In yesterday’s note, we argued that unless their actions were more aggressive, EUR/USD could see a post ECB rally.
Johnson s threats may be another exercise in brinkmanship, an effort to persuade Angela Merkel and Emmanuel Macron to compromise.