Open: New York Session | Forex, Metals, Oil, Agriculture December 21, 2020

MARKET NEWS U.S. soybean futures scaled a more than six-year high, underpinned by concerns about production in South America. Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit.

But gains were capped by a stronger dollar, which rose 0.2% against a basket of viral currencies that made the bullion more expensive for investors using other currencies. London copper dipped from a key $8,000 per tonne level, after posting seven straight weekly jumps, as a stronger dollar dented the appeal of the greenback-priced LME metals. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action.
Also, the dollar index is currently trading near a resistance level. In FX markets, the haven-associated US Dollar and Japanese Yen largely outperformed, while GBP plunged lower against its major counterparts. Looking ahead, the Euro-area’s consumer confidence release for December headlines a rather light economic docket as investors remain intently focused on coronavirus developments. Yellen pressed to back strong dollar in reversing Trump-era tone. Sterling fell 2.2% against the dollar and 1.5% against the euro Monday.
The government’s fiscal exceptionalism was a feature of their anti-establishment nature that in turn introduced greater uncertainty and was then reflected in a weaker Euro. As Medallia improves its go-to-market motion, the signal to watch is DBNRR (dollar-based net retention rate).

In today’s market, investors seem eager to gain leverage to rising gold prices by investing in silver bullion and silver equities. MAG Silver has amongst the highest silver exposure out of any publicly listed companies with silver accounting for over 75% of its metal exposure by revenue. While a majority of gold mines produce gold as its primary product, the same cannot be said about silver mines. Even companies with the word “silver” in their name such as Pan American Silver (PAAS) generate under 50% of their revenues from silver.
(Source: Premier Gold) There aren’t many gold companies today that would embark on the development of such a large-scale project. This has resulted in gold companies being valued at a lower multiple than companies which have some silver exposure. (Source: Premier Gold) Looking at output, Mercedes produced a total of 59,901 ounces of gold in 2019, meaning Equinox is paying just over $8,000 per ounce of production. (Source: Premier Gold) The reserves, output, AISC, net present value and mine life position Hardrock as one of the best development-stage gold assets in Canada.
(Source: Premier Gold) The mine produced just 12,183 ounces of gold in Q3 2020, but the all-in sustaining costs were impressive – just $827 per ounce. Premier will spin out to its shareholders shares of a new Nevada-focused gold company named i-80 Gold Corp, which will get the South-Arturo, McCoy-Cove and Getchell projects.

Saudi seaborne crude exports for last week were seen at 36.0 million bbl (5.1 million bpd) compared to the revised 57.5 million bbl (8.2 million bpd) the week prior. He said the palm oil exporting countries seem to be free to impose export duty and levy as agreements are silent on this issue. Unfortunately, our fears have been proved correct as palm oil prices have risen big time since announcement,” Chaturvedi said. Indonesia has imposed $33 as export duty plus $180 as a biodiesel levy making crude palm oil (CPO) expensive.
Boeing was off nearly 7%.—Energy companies declined in off-hours trading as oil prices fell nearly 5% on fears travel restrictions could curb demand. The high pressure of all the components causes rocks to fracture and the sand keeps those fissures open, while the chemicals help ease the oil or gas out. This has allowed companies to start extracting oil and gas from less-permeable rocks such as shale, opening up vast new fields collectively called unconventional reservoirs.
Russian Deputy Prime Minister Alexander Novak estimated global oil demand to be 6-7 million bpd lower than before the pandemic started.
**Whilst the oil and gas industry to which they service has high economic sensitivity, given the more stable nature of the midstream sub-industry this was deemed to be average. That in turn has economic consequences.” Oil prices also retreated amid expectations that fresh restrictions on European travel and transport will pinch fuel demand heading into 2021.

US stock futures are trading higher today, indicating a positive opening for Wall Street indices. Nasdaq Futures are trading up by 37 points (up 0.3%) while Dow Futures are trading up by 11 points (flat). All three major US stock indices were in the green last week, with the Nasdaq Composite out in front with a 3.1% gain. Recent economic data has highlighted an urgent need for stimulus, with weak retail sales figures and increasing jobless claim figures, demonstrating the fragility of the US economic recovery.
less On Sunday evening, lawmakers reached a deal on a near $900bn stimulus package to help sustain the US economy as the pandemic continues to ravage the country. Today!The House and Senate will vote today on a roughly $900 billion pandemic relief package, with the White House saying President Donald Trump would sign it. Visteon Corporation (NASDAQ:VC) is a company that designs and manufactures integrated cockpit electronics solutions for virtually all of the notable car producers including Ford, GM, and BMW.
Following the results of another stress test, the Fed’s dividend restriction continues, capping them where they were in the second quarter and limiting them based on recent income. Depending on market conditions, the fund will distribute its monthly income in a manner that is taxed at the lowest rate by the US government. He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post.

Brexit talks continue this week between the UK and EU, with the deadline for the UK to exit the EU now just ten days away. The in London and Southeast England, causing Prime Minister Boris Johnson to announce new restrictions of the are – Tier 4, a new level created over the weekend. The U.K. is also now less than two weeks away from the end of the Brexit transition period, after which it won’t remain in European Union trade agreements. With only days left until the U.K. leaves the European Union’s Single Market, talks remain deadlocked over the issue of fishing rights.
A number of EU countries – including Germany, France and Ireland – have now halted travel with the UK, while millions of peoples’ plans for Christmas have been affected.