Open: New York Session | Forex, Metals, Oil, Agriculture July 27, 2020


Raw sugar futures closed down more than 2% on Friday as Brazilian production jumped 55% in July, keeping the world’s largest producer on track for a record season. They’re flooding Facebook groups, Nextdoor and Twitter with calls to action, creating so-called pandemic pods and “micro-schools, and a growing crop of startups are helping. The Bombay Sugar Merchants Association spot rates (₹/quintal): S-grade 3,320-3,382 and M-grade 3,416-3,580. Soft wheat harvesting in France is well underway, with 71% of the crop area harvested by July 20 against 47% a week earlier, the report showed. Buttressed by Allied and Turkish blockades, all cereals and wheat were prevented from entering Mount Lebanon, which at the time had a population of 400,000. Credit Suisse cuts target price to $39 from $40, citing weaker demand for ethanol and corn sweeteners which are likely to pose as obstacles for the company. Farmers generally start planting rice, corn, cotton, soybeans, sugarcane and peanuts, among other crops, from June 1, when monsoon rains typically arrive in India.


Forex dealers said stronger Asian currencies against the US dollar this morning helped rupee bolster sentiment. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.51 per cent to 93.95. During the bull market years between 2000 and 2011, the US dollar and currencies played a key role in the PM complex bull market. BL Research BureauThe Indian rupee (INR) that rallied initially last week, made a high of 74.5 on Wednesday against the US dollar (USD). The Canadian dollar often lags behind the other major currencies in moves against the US dollar. This came amidst US dollar weakness and ongoing US-China tensions, though equity markets were steady overnight after the US Nasdaq 100 Index touched a three-week low on Friday.


Gold rushThe recent rally in gold continued with the precious metal rising to a record $1,944.71 an ounce in trading this morning. Meaningful quarterly production growth was experienced also at Mungari (from 23,721 toz gold to 37,178 toz gold), Mt. Its aim is to optimize the mining operations, reduce costs below $1,000/toz gold, and elevate gold production to the 200,000 toz per year level. Rawdon (from 16,434 toz gold to 25,982 toz gold), and Cracow (from 22,227 toz gold to 27,428 toz gold). In Q4, Evolution produced 218,104 toz gold, 233,252 toz silver, and 6,684 tonnes (14.74 million lb) copper. The inferred and indicated resources contain 2.912 million toz gold, including reserves of 804,000 toz gold. As of the end of 2019, its resources contained 345,000 toz gold (including reserves) and its reserves contained 114,000 toz gold.


Adjusted funds flow will improve as the coronavirus situation settles and oil prices recover. If, however, you believe that oil and gas prices will recover, then the valuation allowance is simply a necessary accounting procedure caused by abnormally weak oil and gas prices. MARKETS TODAY OIL: Oil prices edged lower as rising coronavirus cases and tensions between the United States and China pushed investors toward safe-haven assets. There has not been any significant M&A activity this year in the energy sector with oil prices collapsing due to the COVID-19 pandemic. Saudi seaborne crude exports jumped up to 52.3 million bbl (7.5 million bpd) compared to the revised 35.8 million bbl (5.1 million bpd) the week prior. Reduced petroleum shipments pressured energy and specialized shipments, which is likely about to continue in the second half of 2020 as long as oil prices remain depressed. Now those write-offs or impairments only signal those type of problems if oil and gas prices remain at current low levels.

United States

However, as the stock market pays more attention to “big tech”, or the NASDAQ companies, AT&T is increasingly glossed over. The manufacturing and housing market seems to be leading the US recovery, and this is expected to be evident in today’s reports. – Facebook is the first of the US mega-cap companies this week to report earnings – on Wednesday after the close. China had told the US to shut its southwestern outpost following a US order to close the Chinese consulate in Houston, Texas, last week. In the age of rising market power, only six well-known high tech stocks now represent around 49% of the Nasdaq. The numbers this week are likely to indicate whether risks are stabilising in the US after local authorities and public awareness has reacted to the latest surge in cases. The US S&P 500 index merely closed last week at a one-week low, though notably after having broken above the major 3,220 resistance line (the post-Covid19 bear market high).


Flag down | Chinese authorities have taken over the U.S. consulate in Chengdu following its closure, the latest historic milestone marking the deterioration in relations between Washington and Beijing. Xinjiang, which last week suspended buses and subways in its capital Urumqi, reported 41 local cases. Beijing slammed Friday’s “forced entry” into its Houston mission by U.S. federal agents and local authorities, saying the move broke diplomatic conventions. They fear the government will question, undermine or disqualify candidates who ve criticized the local administration and Beijing. Beijing’s 15.5% rate was the highest since 2009.


By now, I have built up excellent skills and experience in analyzing macroeconomic and political developments in Europe, the Eurozone and Germany, including ECB watching. Meanwhile, a German industry official said the failure of trade talks between the EU and Britain is almost inevitable. Bundesbank President Weidmann cautioned that while he endorsed the action, it should not serve as “a springboard for large scale EU debt for regular household financing.” For now, the ECB economists see bright spots ahead, as a pickup in global value chain activity could also amplify trade. Domestics factors remain the key stumbling block for the Pound (FXB) with the lack of progress in EU-UK trade talks the main source of concern. Call of duty | The EU let its member countries suspend import duties on medical equipment needed to fight the coronavirus for three more months. The EU debt issuance under the Recovery Plan is embraced by some as the Hamiltonian moment.