Open: New York Session | Forex, Metals, Oil, Agriculture January 06, 2021



Urging the scientists to look from the global perspective point of view, Singh said the country’s cocoa production to the global production is very small. These factors should help bring down the import of cocoa and help India becoming self-reliant in cocoa production, he said. “In such a situation, scientist can help develop technologies and connect with the cocoa farmers so that the cost of cocoa production goes down. Referring to the data of International Cocoa Organisation, he said the prices increased around 20 per cent year on year basis.
This will also do away with the vegetable fat as a substitute for cocoa in the chocolate industry,” he added. Coffee may speed its rally while cocoa may suffer more loss. 3 international corn supplier and the world’s top exporter of soymeal livestock feed used to fatten hogs and poultry from Europe to Southeast Asia. Months of hot, dry weather have put the country’s two main cash crops at risk. The South American grains powerhouse last week announced a two-month halt in corn exports from the world’s No.
Raw sugar futures on ICE rose 2% to reach a new 3-1/2-year peak on Tuesday with the market underpinned by short-term supply tightness and continued investment flow from funds.


Elsewhere, a rise in oil prices lifted exporters’ currencies, sending the Norwegian crown to a 21-month high of 8.4350 per dollar and the Canadian dollar to a 32-month peak. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.06 per cent to 89.48. Bets against the dollar have become crowded as investors wager that low U.S. interest rates and a big trade deficit can keep it heading lower for some time yet.
The dollar has fallen 13% against a basket of currencies since it hit a three-year peak last March. “Rising Covid-19 infections could push investors towards the safe haven appeal of the US dollar and cap gains for the domestic unit,” Reliance Securities said in a research note. “Considering ongoing economic recovery and persistent weakness in dollar with soft monetary policies across the world, FPIs flow should continue to remain supportive for Indian equities” Modi added. It has gained 12% on the dollar since last May as China’s economic rebound has led the world’s pandemic recovery.
The dollar index was steady at 89.491 on Wednesday, just above a 2-1/2 year low hit on Monday. A gauge of the dollar fell to near the lowest since 2018. On Tuesday, the rupee depreciated 15 paise to settle at 73.17 against the US dollar.


Although iron ore prices may soften slightly once supply improves, it would remain at elevated levels due to the structural change in the cost of miners paying premium. The division was able to sustain the growth post festive period and has recorded close to 15 per cent growth (excluding sale of raw gold of- ₹334 er.) Domestic iron ore prices in December 2020 have increased to ₹4,610/tonne (NMDC). Sales of gold coins and minted bars dropped to 76,806 ounces last month, declining 8.7% from a seven-month high reached in November and by 2.7% from a year earlier.
Developers will continue their effort to obtain a series of regulatory approvals, including construction permits, for the Resolution copper project after President-elect Joe Biden takes office. Oil traded at over $50 a barrel and gold added to recent gains. Gold may revisit its November low to complete a correction.


US crude oil inventories last week fell by 1.7 million bbl as per an industry body. NOK has benefited from the unexpected oil production cuts from Saudi Arabia which have pushed oil prices higher. Vaccination will result in oil demand recovering and somewhat higher oil prices. Brent crude futures, the global oil benchmark, rose 0.52 per cent to $53.88 per barrel. With demand holding strong in Asia on account of winter, traders have accelerated sales of crude oil held in floating storage.
Meanwhile, U.S. crude inventories fell by 1.7 million barrels in the week to January 1 to about 491.3 million barrels, data from an industry body showed.
REUTERS TECHNICAL ANALYSIS Q1 OUTLOOK 2021 – WANG TAO Crude, palm oil and base metals are expected to extend gains in next quarter. Two reasons for today’s NOK strengthening: The outcome of this week’s OPEC+ meeting ended up much better for the oil price that one could expect. Please also see our Cross Commodity Report published yesterday, a joint publication by the power, carbon, coal, oil and gas analyst teams in Refinitiv Commodities Research.
But in the near term, restrictions will continue to weigh on demand and oil prices.

United States

Futures tied to the technology-heavy Nasdaq-100 index fell 1.7% on expectations that a Democrat-controlled Congress would lead to higher taxes and tighter regulations on tech giants. Control of Senate by Democrats is likely to result in the reversal of lower tax rates in the US, which may create certain volatility in the market. Risk-on due to the increased likelihood for higher fiscal stimulus in the US after the Democrats seem to have gained control in the Senate.
Today, Wall Street continues to use Zacks research including the Zacks Rank and Zacks Equity Research, which combines the best of quantitative and qualitative analysis. Tell that to anyone who bought (Nasdaq: TSLA) for $100 earlier this year or anyone who bought (Nasdaq: MELI) for $500. Yet one Wall Street analyst said Tuesday that some homebuilder stocks are better than others heading into 2021. The tech-laden Nasdaq Composite fared even better, rising 45% including dividends.
Nasdaq has tapped ESG to be “one of the hottest trends” over the coming year. President Donald Trump is also trying to put pressure on Vice President Mike Pence to reject some electors. Unheard of in the days when all Wall Street could say was “Buy”.


Pound optimism fades along with Brexit glow for asset managers. Sustainable Finance in BriefDan Jorgensen Danish Climate Minister Dan Jorgensen, the European Union s climate leader, explains why 2021 has him feeling optimistic.