Open: New York Session | Forex, Metals, Oil, Agriculture June 14, 2021

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

Agriculture

Rather, it’s to note that a big surge in actual output (a “sugar high”) has different implications depending on the path of potential GDP, which is unobserved. Imports of soybean oil increased to 1.64 mt during November-May against 1.57 mt in the year-ago period. First, the chatter: Google Trends count for “Sugar High”, accessed 6/13/2021.

Currencies

Global yields continue to favor the dollar and investors are taking advantage which should push the dollar up and inflation down. There are still things to worry about on the inflation front but sustaining current inflation rates is probably going to require an assist from the dollar. In the last weak dollar period from 2002 to 2008, the annual rate of inflation exceeded the Fed’s 2% target for 5 consecutive years (2003-2008). By contrast, the generally strong dollar of the last decade kept CPI inflation under the Fed’s target almost the entire time.
Maybe it will eventually but in the short term, the dollar looks poised to resume the gentle uptrend it started at the beginning of the year. The dollar is still near the bottom of its 6-year range but it refuses to fall any further. The dollar edged lower. The U.S. dollar edged lower. the value of the dollar. Funding soared in 2014 after the European Union launched research programs such as the nearly 80 billion-euro ($97 billion) Horizon2020 initiative.

Metals

Even central banks around the world, despite refusing to redeem their fiat currencies in gold, continue to hold and accumulate gold in their own reserves. Gold prices for the latest contract on MCX are trading down by 1% at Rs 48,432 per 10 grams. Gold prices are trading down by 0.6% at Rs 48,593 per 10 grams. To the upside, if we can break above the highs of the last couple of weeks, that is very likely that gold will go looking towards the $1950 level. S&P 500 futures pointed to a small rise at the open, the 10-year Treasury yield was at 1.465% and gold fell.
Gold prices fell. The value of gold and silver is the metal itself. Meanwhile, silver prices are trading down by 0.7% at Rs 71,792 per kg. Among the largest buyers were mutual-fund giant Capital Group Cos., venture-capital firm Sequoia Capital, e-commerce company Shopify Inc. and buyout firm Silver Lake, some of the people said. Real money is represented by gold and silver.

Oil

India imported 4.56 million tonnes (mt) of palm oil (including crude palm oil and RBD palmolein) during November-May 2020-21 compared 3.67 mt in the corresponding period a year ago. Mehta said that the higher spread between soft oils and palm oil encouraged the import of palm oil to India during the first seven months. India imported 1.27 mt of sunflower oil during the review period against 1.64 mt in the corresponding period a year ago. Signals from oil market are also pointing upwards on optimism that increased vaccine roll-out has led to higher mobility and higher fuel demand.
Crude oil prices traded near multi-year highs today, underpinned by an improved outlook for demand as increased Covid-19 vaccinations help lift travel curbs. BV Mehta, Executive Director of SEA, said that the import of soft oils (which includes sunflower oil) decreased due to high prices in the global market. Sunflower oil imports declined by 22.35 per cent during the period in view of the high price.
Spending on oil extraction fell last year to about $330 billion, less than half the total from its 2014 record, according to research firm Wood Mackenzie. Oil prices rose supported by the prospect of fuel demand as vaccination campaigns in developed countries accelerate. Two monthly prints in a row now, with the most recent June print showing the largest increases in used cars/trucks, transportation services, fuel oil, and apparel.

United States

Wall Street futures rose as focus shifted to the Federal Reserve’s meeting this week, where the central bank is expected to maintain its accommodative stance on monetary policy. less Over the last couple of months, the Fed started its campaign to prepare markets for a “taper” of its asset purchases. The bond market remains very calm about Fed policy, with Chair Jerome Powell s messaging on inflation s transitory nature clearly being heeded. The US yield is at 1.46% after shedding 10 bp last week, the most since last June.
The Fed’s preferred “core” rate of inflation excludes food and energy and fails to track actual home prices—some of the biggest real-world costs for consumers. The website-builder company made its Wall Street debut in a direct listing last month, opening at $48 per share. The sustained increase in prices have been on the back of recovering demand, especially the peak summer driving demand in the US and a big part of Europe.
All told, Fed officials will have a rich discussion this week even if they decide to do nothing for the summer. Is the Fed’s new “wait and see” approach on inflation to blame for transport-specific price gains?
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China

US, Europe, Canada, and Japan’s disapproval of Beijing’s domestic and foreign policy is clear, and it does not appear to have much impact.

Europe

Global Headlines Reality check | The G-7 summit couldn t paper over divisions on issues from climate change to Brexit. Arguments among European leaders about Brexit escalated at the summit.

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