Open: New York Session | Forex, Metals, Oil, Agriculture July 23, 2020



We are gradually drawing closer to “decision time”, however, so constant monitoring of both weather and the background fundamentals data will be critical in determining where prices ultimately go. I believe the company is highly likely to weather through the recession with its balance sheet relatively intact and return to its normal run-rate after the pandemic passes. The weather cleared up before the halfway mark, and they got to go swimming with dolphins along with other amazing experiences. MARKET NEWS Chicago soybeans slid as mounting diplomatic tensions between Beijing and Washington stoked fears over China’s demand for U.S. supplies. Bespoke Weather Services – The premier blended weather and natural gas analytics service custom-designed for gas investors, traders, and brokers. Sugar prices at the Vashi wholesale market firmed up by ₹8-10 a quintal tracking eased selling at naka level. But continuous selling by mills kept the sugar tender rates steady.


The Dollar Index is falling for the fifth consecutive session and 10 of the past 11, illustrating the recent push lower. Deflation did not last, and the surprisingly high inflation rate has catalyzed a breakout in precious metals and a possible devaluation of the dollar. Today would be the fourth consecutive decline in the US dollar and matches the longest depreciating streak of the year. The risk of penalties is worrisome for the bank, with billions of dollar claims passing through its balance sheet daily. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. Higher-than-expected June CPI readings from Canada yesterday helped push the US dollar to CAD1.3400 yesterday, and follow-through selling today has seen the greenback fall to almost CAD1.3370. The dollar crept off milestone lows against other majors, and held on to gains against the yuan, as heightened Sino-U.S. tensions kept currency markets cautious.


If gold makes new highs, it is possible silver will eventually surpass its past peak, likely bringing silver miners up by triple digits. This corresponded to a gold/silver ratio of nearly 110, which meant it took that many ounces of silver to buy one ounce of gold. The silver ETF (SLV) and the silver mining ETF (SIL) have seen very strong inflows over the past few weeks. In general, the core portfolio is focused on gold & silver miners which have large silver operations, while exploration and opportunistic are focused exclusively on silver. Silver began to outperform gold until late 2011 when it took only 32 ounces of silver to buy one ounce of gold. Gold’s boring cousin Silver has rallied about 100% since the March lows (compared with Gold up 27%). Back then, the silver market was in despair, as silver was at a level where many miners could not make a profit.


Lower oil prices combined with low exports have contributed to the fall in the value of the exports. Pertamina, the Indonesian state oil company announced plans to test production of a jet fuel made up of 3% palm oil by the end of the year. The U.S. oil major said on Wednesday that it agreed to buy land from Kelt Exploration in Canada’s Montney shale oil play, in a $375 million deal. Malaysian palm oil futures eased as rival soyoil prices fell, but supply concerns limited losses as heavy rains hit top producers Indonesia and Malaysia. U.S. oil major ConocoPhillips said on Wednesday that it agreed to buy land from Kelt Exploration in Canada’s Montney shale oil play, in a $375 million deal. This happened over the period as the Norwegian currency has declined against many others over the past year, which is partly due to it correlating somewhat with oil prices. Chevron Is Installing Solar Panels To Produce Oil More Cheaply Solar is powering oil pumps at a Chevron oil field in California.

United States

The social media company missed Wall Street’s lowered expectations for quarterly revenue despite surging usage, as the coronavirus-spurred economic slowdown battered the company’s largely events-oriented digital ads business. This may in turn lead long bond yields higher and tighten financial conditions too soon for the Fed’s taste (as was the case during the GFC recovery phase). This way of thinking has in turn led several Fed members including Brainard, Harker and Evans to de facto make the case for so-called average inflation targeting (AIT). One of the key questions being asked by market participants is how this might affect the next political strategy of President Trump. Adjusted for one-time items, Tesla (NASDAQ:TSLA) earned $2.18 a share, swinging from an adjusted loss of $1.12 a share a year ago, while sales fell 5% to $6.04B. But that’s the important point: the Fed reacted proactively, used its financial crisis playbook, added some new “wrinkles” and prevented a run at the all-time high.

The Federal Reserve (Fed) has thus far come to the rescue to avoid another financial crisis, realizing how vital it is to prevent another meltdown from a funding perspective.


Beijing – already angered with London’d U-turn had vowed to retaliate ahead of the move related to HK. Chinese President Xi Jinping also faces a crucial leadership test in 2022, when he will vie to continue his indefinite rule in a break from his predecessors. It s another blow to a city already reeling from months of unruly anti-Beijing street protests followed by the pandemic s emergence. Red card | Chinese state television is taking English Premier League soccer matches off the air, amid increasingly strained political relations between Beijing and London. European stocks and US equity futures advanced as investors monitored earnings pouring in and seemed to look past the latest tensions between Beijing and Washington. China Central Television (CCTV) has “demoted” Premier League football matches amid the escalating diplomatic row between Beijing and the British government, according to reports. Beijing may respond to the closure of its Houston consulate with cuts to the U.S. mission in Hong Kong.


Even a UK-EU FTA (free trade agreement) will not allow Japanese companies to maintain current supply chains,” she said. “We don’t have a free trade agreement [with the EU, so] you would need a substantially greater number of customs agents,” he said. The European Union has a trade deal with Japan, but Britain will no longer benefit from it from the start of 2021 when the Brexit transition period ends. The ban on people from different households meeting together indoors is likely to be eased, as Boris Johnson also reopens cinemas, museums and art galleries. The latest net approval ratings from Opinium put Boris Johnson on -4 per cent and opposition leader Sir Keir Starmer on 21 per cent. Greece’s prime minister also said this week that EU sanctions await Turkey if it moves forward with illegal drilling. News > UK > UK Politics A Brexit trade deal is now looking “unlikely” because of British intransigence on key issues, the EU’s chief negotiator has warned.