Open: New York Session | Forex, Metals, Oil, Agriculture July 29, 2021

A member of the National Guard plays a trumpet during a flag rai

Agriculture

Over the last three years, the yield per hectare of Indian cotton has dropped below 500 kg per hectare despite a rise in the area under the fibre crop. Australia tops the list, getting 2,0171 kg of cotton per hectare, followed by China (1,879 kg), Brazil (1,803 kg) and Turkey (1,645 kg), respectively. “India cotton yield is low since no new seed technology has been introduced since 2006. Bt seeds make up over 95 per cent of the area under cotton India, which accounts for over 40 per cent of the total global area.
CCPC data show that Maharashtra has the highest area under cotton at 41.84 lh, but its yield is the lowest among all States below 350 kg. “Countries such as Australia, Brazil and the US have gone five generations ahead of India in cotton seed technology,” the official said. According to the multinational firm official, farmers are not showing any interest in non-GM cotton since they have to spend more on spraying pesticides and insecticides.
According to the CCPC, cotton closing stocks, last season were 120.95 lakh bales, and for the current season, they have been estimated at 97.95. “There is no demand from farmers for non-GM cotton seed,” he said. “We got the best out of the genetically-modified cotton during 2013-14, but after that yield has stagnated.

Currencies

The dollar initially spiked on the initial taper talk, but as Powell sought to play down rates and the eventual inflation outlook, the dollar slides backward. Despite FPI outflows, outlook remains positive due to dollar weakness and bearish crude price The Federal Reserve completed its two-day meeting and announced its policy decision yesterday. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action.
The U.S. dollar remained under pressure for another day even after the Federal Reserve monthly policy meeting; it helps gold prices underpinned. However, based on the behavior intraday, it appears that the US Dollar may want to get set to go and retest the recent low near $89.50. This was the case for Japan’s bond market, thereby putting all three of these factors into the same general bucket: bonds, economy, and dollar. The dollar (USD) initially bounced as the Fed sounded positive on the economy but gave away the gains and declined as there were no signs of tapering.
These developments took a toll on the U.S. dollar, and the greenback suffered for another day. Certainly true for TIC (serious dollar warning) which seemingly set up the deflationary potential to get up more in June. But today was the first time in my life I actually used a dollar bill as toilet paper.

Metals

Demand from jewellers and investors in gold bars and coins,however, was lower than during the first quarter, but still higher than during April-June 2020. Many mining investors are overly focused on gold but something like 60% of all exploration dollars go into gold. Central banks buy moreCentral banks during April-June bought more gold than in any quarter for two years. They stockpiled huge amounts of gold, briefly driving prices above $2,000 an ounce, but stopped when economies returned to growth.
Gold prices are trading up by 0.1% at Rs 47,578 per 10 grams. Gold prices are trading up 0.8% at Rs 47,960 per 10 grams. You see, Moderna’s first authorized product was its COVID-19 vaccine, so it struck gold off the bat. On MCX, gold futures were trading 0.4% higher at Rs 47,764 for 10 grams. Gold price forecast remains bullish as it extended its gains for the second consecutive session. less The safe-haven asset Gold closed at $1807.95 after placing a high of $1808.95 and a low of $1791.20.

Oil

Meanwhile, international oil benchmark Brent crude advanced 0.30 per cent to $74.09 per barrel. Global oil benchmark Brent crude futures advanced 0.35 per cent to $75 per barrel. less A bullish inventory draw in weekly data from the US Energy Information Administration (EIA) sparked some upward movement in crude and brent oil benchmarks overnight. This bodes well for the demand narrative, as gasoline products are viewed as a leading indicator for oil demand.
The largest single reason for this monthly decline is a dramatic drop in Chinese export volumes as refiners run out of oil product export quotas.
Image Source: Pixabay Oil prices took a hit earlier in July when the highly transmissible COVID Delta variant started spreading through major economies, causing demand-side fears. Crude oil pushed above the 20-day Simple Moving Average (SMA), putting prices on a more solid footing. In addition to crude stocks, the EIA data showed a decline in fuel products as well. Alternatively, an acceleration in rates, particularly in developed economies, may see oil benchmarks move lower.
Further weekly draws in oil stocks in the US will likely hedge those fears.

United States

The Bank also noted that the economy had made significant progress on the employment and inflation goals set by the Fed. Of its dual mandate – maximum employment and price stability – the Fed is currently focused on the former, overlooking the sharp rise in inflation in recent months. However, with no rush to raise interest rates and Fed open market operations continuing, the could try the downside once again. less Moderna Inc. (NASDAQ: MRNA) stock skyrocketed last year, moving over 434% on global demand for coronavirus vaccines.
less A discussion of market volatility, inflation, Fed, and commodities. less Asian share markets are trading on a positive note today as the US Federal Reserve signaled it was in no rush to taper stimulus. The US Federal Reserve said the economic recovery is on track despite a rise in Covid-19 infections but did not set a timeline for tapering Fed asset purchase. The market showed no net action on the Fed as the price fell down quickly and then recovered all the losses.
Meanwhile, in another boost to the bulls, the US Fed has kept rates unchanged and reiterated that it is “nowhere near considering a rate hike”. During the press conference, the USD fell as Fed Chair Jerome Powell mentioned that inflation should persist for several months.

China

However, the sentiment was fragile as investors waited to see if Beijing could stem the recent bloodletting in Chinese shares.

Europe

Regionally, Asia Pacific is responsible for the largest share of carbon dioxide emissions, with more than double the combined emissions of the U.S. and the EU. Brexit has been completed in one way or another.

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