Open: New York Session | Forex, Metals, Oil, Agriculture January 20, 2021



The world’s top soybean buyer last year brought in 25.89 million tonnes of the oilseed from the U.S., its second-largest supplier, up from 16.94 million tonnes in 2019. MARKET NEWS Chicago soybean futures slid 1.4% to their lowest in more than one week as rains across South America lifted crop prospects, boosting expectations of improved world supplies. Ukraine’s economy ministry and agricultural unions will decide on Jan. 25 whether to limit corn exports for the 2020/21 marketing season to 22 million tonnes.
Raw sugar futures closed down on Tuesday, retreating from last week’s 3-1/2-year high with a bout of profit-taking after the market’s recent strong advance. Corn leads the way, with prices rising over 10% in less than two weeks.


FOREX: The dollar sank against a basket of currencies for a third straight session as improved sentiment buoyed riskier currencies such as the Aussie dollar and the euro. In global markets, gold prices moved higher following a weaker US dollar amid expectations of a massive US stimulus. The Euro and the Sterling were flat to marginally higher against the US Dollar this Wednesday morning in Asian trade. Not so much, although the Bloomberg Dollar Index shows a positive performance for the greenback lately.
In a wide-ranging hearing, Yellen also said that – moving away from the strong dollar policy. Yellen says she won’t seek weaker dollar, wants market-set rates… …and she gets Wall Street buzzing about 50-year Treasuries. Vietnamese dong has been stable even in the year when Dollar was strong ( between 2015-2019). But again, they’re just fiat tax bills and Bitcoin is the payment system.This is a key part of the dollar’s persistent dominance.
Investors are awaiting President-elect Joe Biden’s first moves in the White House with high hopes, pushing the safe-haven dollar down. The Frankfurt-based institution is set to leave rates unchanged but may warn about the higher exchange rate of the euro.


less Does the rapid rise in the bitcoin price and the slide in the gold price over the past several months indicate that bitcoin is sapping demand from gold? Source: Bloomberg, DailyFX Nonetheless, a large fiscal spending package also points to a higher inflation outlook, which will likely lead to lower real yields and underpin gold prices. It’s likely that the gold price will embark on its next intermediate-term advance at around the time that the bitcoin price reaches an important top.
Tracking higher global prices, gold prices edged higher in Indian markets. Neither is money in the only practical definition of the term (the general medium of exchange), but gold trades like money. Reflation hopes may encourage investors to park their money in equities in search of yields and growth, resulting in a relative underperformance of gold compared to stocks. Yellen’s comments revitalized hopes for reflation and brightened the prospects for economic recovery, sending risk assets broadly higher alongside gold and crude oil prices.
Bitcoin has gone up a lot and it’s worth a lot of money, kind of like gold, but that doesn’t mean it’s getting closer to a reserve asset. Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic. Of particular relevance, the demand to hold money (and therefore gold) tends to rise during ‘busts’ and fall during ‘booms’.


Oil demand in China, the world’s top oil importer, remained strong last year even as the coronavirus crisis hammered global appetite. Brent crude futures, the global oil benchmark, rose 0.59 per cent to $56.23 per barrel. COLUMN-Oil price forecasts fall in the wake of the pandemic: Kemp Oil prices are expected to remain lower even once the coronavirus pandemic is over and the economy recovers. Malaysian palm oil futures fell 3% to its lowest in over two months as dismal Jan. 1-20 exports data dragged the market, and tracking losses in rival soyoil.
The WTI crude oil price is up 9%, and that puts pressure on energy prices too.
He said India is the largest importer of soyabean oil from Argentina and Brazil. But these are still oil and gas companies and you can’t measure the risks without getting to grips with that. It is logical to bet on the worst performing sectors of CY20, that is banking, oil & gas, utilities, capital goods, real estate, metals, telecom and FMCG. Total SE became the first oil major to quit the influential American Petroleum Institute due to a clash on climate change policy.
Before a perfect storm hit the industry in 2020, medium-term price expectations had been firmly anchored around $65-70 per barrel, based on the average annual price of Brent crude.

United States

These words from the former chairperson of the Fed have given the hope to the market that stimulus spending would happen as expected and would provide boost to demand. Nasdaq Futures are trading up by 75 points (up 0.6%) while Dow Futures are trading up by 6 points (flat) The rupee is trading at 73.12 against the US$. US stock futures are trading higher today, indicating a positive opening for Wall Street. The announcement followed four years of controversy around the waiver program under the Trump administration, but left many questions unresolved.
Looking ahead at , fears of violence from supporters of outgoing President Donald Trump may be somewhat hiding investors back. The Capital Spectator has been quoted by a range of news organizations, including The Wall Street Journal, Reuters and others. President Trump recognized the defeat, and tomorrow Joe Biden is expected to give his first speech as the new President of the United States.
The calendar today is barren in the US, but in Canada, the market will hear from BOC as it announces its rate decision. less The US money machine has been warming up – and global markets are heartened. Morgan Stanley wraps up what has been a strong earnings season for Wall Street’s biggest banks when it reports before the bell today.


Ant Group’s mega IPO was scuttled by Beijing soon after the Alibaba founder spoke in Shanghai.


President Emmanuel Macron hinted during a visit to troops that France could soon scale back its largest overseas military operation, fighting Islamist militants in West Africa. We also dive into the latest on volatile Italina politics and how the ECB continues to crush EU sovereign yield spread. Without cutting rates, any attempt by the ECB to talk down the common currency will likely be futile. Asia and the EU EUR CPI US CAD CPI 8:30 CAD BOC 10:00 Markets were mildly bid in quiet trading ahead of President-elect Joe Biden’s inauguration ceremony today.
The complaint concerns measures by the EU and its member states France and Lithuania. Merkel’s successor has some explaining to do in Washington.