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


MARKET NEWS Chicago corn and soybean futures slid after a better-than-expected U.S. Department of Agriculture (USDA) report on the condition of both crops. The agency, in a weekly report, said 69% of soybeans were in good-to-excellent condition, up one percentage point from a week earlier. Increased soil moisture was helping trees develop tiny flowers and small pods, which was an encouraging start for the main cocoa crop, the farmers added. Crop Watch growers to increase corn condition and yield scores, bringing those eight-field averages to the highest levels for any week since Crop Watch began in 2018. COLUMN-Crop Watch: Producers boost corn hopes on better weather -Braun Last week s favorable weather led several U.S.


“Silver’s path of least resistance is up and strong equities are helping as well.” Silver, like gold, tends to trade in the opposite direction to the US dollar. FOREX: The euro hit its strongest level since early March after the European Union (EU) struck a deal for a massive stimulus plan to revive their coronavirus-hit economies. The deal supports the euro and should narrow euro area bonds spreads further. Meanwhile, European Union leaders agreed on a 750 billion euro ($859 billion) fund that would help uplift the economies of all 27 states. Europe has moved on from its messy handling of the euro zone debt crunch.


In addition to strong demand in Gold to hedge against inflation, demands on Treasury inflation-protected securities (TIPS) soar, as well as platinum, silver, and copper. “Silver’s path of least resistance is up and strong equities are helping as well.” Silver, like gold, tends to trade in the opposite direction to the US dollar. To beat the market you want to be in the sectors and stocks beating the market and this is why the gold and silver bugs now rule. Precious metals are also performing strongly this morning, with gold adding to gains and silver trading over $20 an ounce in the spot market. Silver futures are surging again this morning, dramatically outperforming gold (which is also up notably) with both pushing to new multi-year highs… Silver futures are back near $21…


While Brent oil prices have stabilized between $38-42 a barrel since June, earnings and revenue growth remain negative for these companies in both 20Q3 and 20Q4. OPEC’s own forecasters, for example, think that between the second and fourth quarters this year, demand for its crude will rise by almost 13 million b/d. The decline was widely anticipated considering the spot price of the US benchmark WTI crude averaged just $27.81 per barrel in Q2-2020, down from $45.76 in Q1-2020. U.S. crude futures were trading around $40 per barrel on Monday, at the bottom end of what most producers need to be profitable. These efforts have put Apache in a position to balance cash flows in a low $30s per barrel WTI oil price environment.

United States

Tim Murtaugh, the Trump campaign’s spokesperson, said protesters stopped supporters from entering the rally, held at the BOK Centre, which has a 19,000-seat capacity. “Silver’s path of least resistance is up and strong equities are helping as well.” Silver, like gold, tends to trade in the opposite direction to the US dollar. “The majority of people who made them deleted them after the first day because we didn’t want the Trump campaign to catch wind,” Daniel said. China’s foreign ministry said on Tuesday that it opposed the Trump administration’s latest economic sanctions, and accused the US of abusing export control measures. Mnuchin’s $1 trillion target is less than a third of what Democrats seek and the president’s contentious demand for a payroll tax cut may be part of it.


Meanwhile, a diplomatic row with Beijing grows more heated, following China’s move to bring Hong Kong more closely under its control with a so-called “national security law”. Beijing has also announced plans to provide free COVID-19 tests to residents of Urumqi, the capital of Xinjiang which is experiencing an outbreak. U.S.-China relations have deteriorated rapidly in 2020, especially since Beijing imposed a national-security law on Hong Kong earlier this month, dramatically curtailing the territory’s autonomy. The US Commerce Department imposed similar restrictions in June and October last year on 37 companies it said were “engaged in or enabling” abuses in Xinjiang. Monday’s announcement increases pressure on Beijing over Xinjiang, where Muslim minorities are believed to have faced mass detentions, forced labour and other abuses.


US Secretary of State Mike Pompeo is also in the UK to discuss China, 5G and a free trade deal with Prime Minister Boris Johnson. I will not be surprised by a deal, but it will not be the deal Lagarde hopes for. : New round of negotiations between the EU and the UK as part of the Brexit process (considered as the new “soft” deadline to reach a compromise). The EU deal required the unanimous approval of all 27 EU states and was a victory for Angela Merkel and Emmanuel Macron, who drafted an early outline in May. The Inside Story of the EU Stimulus Merkel, Macron at heart of negotiations on plan they devised.