Open: New York Session | Forex, Metals, Oil, Agriculture January 05, 2021

According to Indian Sugar Mill Association (ISMA), sugar mills have the opportunity to contract and export sugar till March-April 2021, by when Brazilian sugar comes into the market. “There is good demand for raw sugar in the world market compared to white sugar. Money managers and hedge funds raised their bullish bet in raw sugar by 8,253 contracts for the period, bringing their net long position in the sweetener to 153,760 contracts. Mills must increase the export without any delay,” said sugar trader Ashok Ghorpade.
The prices of raw and white sugar are almost the same at ₹2,700 per quintal. Industry players say that mills are facing a loss of ₹7 after per kg sugar production. Brazilian sugar production is estimated to be over a record high of 38 million tonnes from April 2021. Corn neared $5 per bushel on Monday before ending a tick lower as investors took profits. Ivory Coast, the world’s top cocoa producer, is in the dry season, which runs from mid-November to March.
The country’s wheat traded at $265 a tonne FOB in January 2016, it said in a statement.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.12 per cent to 89.76. Their strong performance on Mexico’s benchmark stock index coincided with a jump in global metal prices, including for gold, in line with the weakening dollar. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. Georgia’s Senate runoff elections today may serve as a key catalyst for the US Dollar, which will then influence broader asset classes, including commodities.
The U.S. dollar may fail to rally under conditions that would have signaled tighter monetary policy in previous eras, begetting even more inflation. London copper prices crept towards the psychological level of $8,000 a tonne, as a weaker dollar made greenback-priced metals cheaper to holders of other currencies. It opened at 73.02 against the US dollar and fell to 73.15 against the greenback, registering a fall of 13 paise over its previous close.
Similarly, one can find times when gold is correlated to the dollar, the yen, and most likely the popularity of peanuts at Cub games in some time frame. The rupee depreciated by 13 paise to 73.15 against the US dollar in opening trade on Tuesday tracking the muted opening in domestic equities. If Democrats gain control of the Senate we could see the Dollar dipping lower as Biden will be able to fully enforce tax hikes and further stimulus.

“In other words, gold and silver eventually became money because of this perceived mystical link that made it distinct from other worldly commodities. In Indian markets, gold prices were mixed today, a day after the precious metal had surged following a global rally. Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic. The associations of gold and silver derive not only from their lustre but from not suffering corrosion: unlike other metals, they may seem immortal.
In global markets, gold prices eased today after a 2.5% jump in the previous session. Gold prices are trading flat at Rs 51,429 per 10 grams. On MCX, gold futures were down 0.03% to Rs 51,410 per 10 grams after a Rs 1,200 surge in the previous session. The best correlation I can find to the price of gold is faith in central banks. Let’s investigate an alleged relationship between gold and M2, a measure of money supply in the US.
But the Satoshi creation story, like gold, explains why it’s worth something and not nothing.Joe Weisenthal is an editor at Bloomberg.Like Bloomberg’s Five Things?

Meanwhile, the global oil benchmark, Brent crude, was trading 0.14 per cent lower at $51.02 per barrel. Brent crude futures, the global oil benchmark, fell 0.18 per cent to $51.00 per barrel. Malaysian palm oil futures dropped to snap a four-session gaining streak as cheaper rival Dalian oils weighed on prices despite expectations of a slump in December stockpiles. The Saudis argue that new coronavirus lockdowns mean demand will be lower than expected, while Russia’s oil minister wants to stick to the original plan.
REUTERS TECHNICAL ANALYSIS Q1 OUTLOOK 2021 – WANG TAO Crude, palm oil and base metals are expected to extend gains in next quarter. Elsewhere, oil suffered a pump and dump ahead of important OPEC decision time on production targets. Divergence between Russia and Saudi Arabia with regards to whether to increase oil supply in February remains a top risk. This renders oil prices vulnerable to profit-taking activity should reality deviate from exuberant assumptions.
After failing to reach a consensus on Monday, the OPEC+ will resume talks today to try and align interests with regards to the output cuts. Trying again Yesterday’s meeting of OPEC and its allies to agree on production levels for February ended with nothing more than a commitment to meet again today.

We’ve already seen some position adjusting ahead of today’s Georgia state runoff, and more adjustments will likely be forthcoming ahead of the Fed Minutes and US jobs report. US stock futures are trading higher today, indicating a positive opening for Wall Street indices. Nasdaq Futures are trading up by 21 points (up 0.2%) while Dow Futures are trading up by 42 points (up 0.1%). Traders said market participants remained cautious ahead of the outcome over the run-off elections in Georgia that will determine control of the US Senate.
In addition, traders will be eyeing the minutes of the December Federal Reserve meeting, the US ISM manufacturing and non-manufacturing data and the US monthly jobs report. The US is also struggling with record hospitalizations, and data on both sides of the pond is probably incomplete amid the holidays. Since leaving Wall Street I’ve dedicated my financial career towards studying this situation and helping people understand what’s actually happening.
“Currently, Wall Street analysts are wildly exuberant on expectations of explosive economic growth, rising interest rates, and inflation. He has been featured in such notable publications as the Wall Street Journal, New York Times, USA Today, Investment Advisor, Fortune, and The St. Petersburg Times. In addition, the Fed holds unscheduled meetings, should the need be, as was the case last March.

German Chancellor Angela Merkel is consulting with regional officials and health experts today about extending lockdown measures after criticism over alleged failures in the government s vaccination program. The most significant one last year was the EU setting a legally binding target to reach net-zero emissions by 2050. The EU has a history of including references to the Paris Agreement, but this deal takes it one step further and makes it a make-or-break issue.
Take the Brexit deal, which the U.K. and EU approved in the nick of time before their Jan. 1 deadline.