Open: New York Session | Forex, Metals, Oil, Agriculture December 22, 2020



Russia decided to impose the export tax on soybeans to secure domestic supply amid rising global prices, its economy ministry said on Saturday. Ukrainian 12.5% protein wheat traded at $255-$259 per tonne FOB Black Sea at the end of past week, the consultancy said in a report. For the lower-quality 11.5% protein wheat, prices were between $254 and $258 a tonne. Ivory Coast, the world s top cocoa producer, is in the dry season, which runs from mid-November to March, when rain is normally light and infrequent.
It’s time to come down from the sufgania sugar high.


Dollar indexThe dollar index, after opening the session marginally lower, rallied strongly to mark an intraday high of 91.02. The dollar was firm but was well below peaks hit on Monday’s wild ride higher, as a new coronavirus strain in Britain sent jitters through holiday-thinned currency markets. Needless to say, valuations were high at $60 in terms of the earnings multiple, with earnings coming in around the dollar mark. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action.
With GAAP earnings power just above the dollar mark, or perhaps around $1.20 per share, valuations are very steep. In FX markets, the haven-associated US Dollar and Japanese Yen continued to outperform their major counterparts, while the cyclically-sensitive Australian and New Zealand Dollars lost ground. The market sell-off boosted the safe-haven dollar, sending EUR/USD to around 1.2130, but as time passed by, investors returned to their senses.
Global diversification still makes sense, especially if you believe that (a) non-U.S. growth and earnings will outpace the U.S. and (b) the U.S. dollar will continue to slide. China set to reduce dollar’s influence on yuan trading basket. The news helped the pound recover but the euro is still hesitant.


Cryptocurrencies and gold are both seen as hedges against currency debasement, and while cryptocurrencies are (rightly) regarded as riskier than gold, they are also seen as potentially more rewarding. Beyond next year, he also sees gold prices heading higher, with an acceleration in price gains in the 2023 to 2025 timeframe. Tracking firm rates in international markets, gold prices edged higher in Indian markets. Domestic gold prices edged lower, mirroring a similar trend in international markets.
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. Translation – KPMG had to use subjective judgement rather than objective evidence and records when attempting to confirm exactly how much physical gold is actually held by the fund. In the previous session, gold prices had edged 0.2% higher. Readers may remember that the 2011 peak in gold prices was also preceded by a sudden flood of mainstream endorsements.
Gold prices are trading down by 0.3% at Rs 50,269 per 10 grams. Gold prices are trading down by 0.3% at Rs 50,245 per 10 grams.


At the peak last year, the top five shale oil fields combined production reached nearly 9.2 million barrels per day. Oil production from the Anadarko declined from 603,000 barrels per day (b/d) at the peak last year to a forecasted 363,000 bd in January. Facing heavy debt burdens and weak oil prices, shale oil producers have been selling at low- to no premiums to market value. Cumulative crude throughput in April-November 2020 was 139337, which is 17.82 per cent lower than the crude throughput of 169,555 MT in the corresponding period last year.
US crude oil inventories likely fell by 3.3 million bbl according to a preliminary Reuters poll of analysts.
buy oil CFDs for $100 000’s, and the oil price goes up by 5 percent, you will make $5 000 profit. China has issued the first batch of 2021 crude oil import quotas for non-state refiners as per a Reuters report. That makes the company the largest publicly traded Canada-based oil company, with its massive valuation and commitment to shareholder rewards (with a near 8% dividend yield). It’s a massive company that delivers oil and natural gas across the continent with substantial renewable energy operations in its portfolio.
From a liquids standpoint, the company transports 25% of North America’s crude oil, making it #1 by miles of pile.

United States

Nasdaq Futures are trading down by 28 points (down 0.2%) while Dow Futures are trading down by 160 points (down 0.5%). Nasdaq Futures are trading up by 42 points (up 0.3%), while Dow Futures are trading down by 54 points (down 0.2%). Big-caps remain extended, as bears continue ‘fighting the Fed’, even as for sure, a post-Expiration pause would be normal, but Tesla might mix that up. The New York Fed’s survey, conducted over the summer, found that people expressed an even higher likelihood to save and pay down debt if there were more stimulus benefits.
When the company concluded that its last-mile delivery was not as efficient as it could be, via UPS and the like, it developed their own delivery capability. US stock futures are trading lower today, indicating a negative opening for Wall Street indices. All while the US government announced that they’re going to print another $900 billion, which apparently only lasts until the end of the first quarter!
Besides the valuation, the other key (competitive) risk includes much larger and innovative competitors such as Agilent (NYSE:A), Bruker (NASDAQ:BRKR), Danaher (NYSE:DHR), Flir (NASDAQ:FLIR) and PerkinElmer (NYSE:PKI), among others. Since leaving Wall Street I’ve dedicated my financial career towards studying this situation and helping people understand what’s actually happening. E-commerce has been like a massive wave that has washed over much of the traditional retail footprint in the US and Europe.


U.K. crisis The U.K.’s last-ditch effort to get a breakthrough in negotiations with the European Union on a post-Brexit trade deal was rejected this morning by the bloc’s officials. President Tsai Ing-wen’s decision in August to allow imports of U.S. pork containing ractopamine, a leanness-enhancing additive banned in the European Union and China, has roiled Taiwan politics. Another potential positive development comes from another EU-UK topic – Brexit. The European Commission has granted Pfizer/BioNTech the authorization and vaccines will now be rolled out to 27 countries in the EU.