Open: New York Session | Forex, Metals, Oil, Agriculture March 01, 2021



According to the Cotton Association of India (CAI) and Gujarat Cotton Trade Association, India’s benchmark Shankar-6 cotton is offered for exports at a little below ₹48,000 a candy. This has resulted in higher yarn production, but prices have increased primarily as cotton prices have gained. This resulted in higher yarn production, but prices have increased, primarily, as cotton prices gained. Ratings agency Ind-Ra said that global cotton prices have also increased due to the curbs imposed on Xinjiang region (China) cotton by the US administration.
According to the Trading Economics Website, cotton has gained over 13 per cent since the beginning of 2021, with prices rising nearly 10 per cent in February. With prices dropping a tad during the weekend, cotton prices in New York quoted at 88.48 cents a pound (Rs 51,300 per candy of 356 kg approximately). According to Trading Economics Website, cotton has gained over 13 per cent since the beginning of 2021, with prices rising nearly 10 per cent in February.
With prices dropping a tad during the weekend, cotton prices in New York quoted at 88.48 cents a pound ( ₹51,300 per candy of 356 kg approximately). “The percentage of increase in yarn prices is lower than the rise in cotton prices. The rise the has come despite the country carrying over record stocks of cotton from last season (October 2019-September 2020),” said Southern India Mills Association (SIMA) Chairman Ashwin Chandran.


FOREX: The Australian dollar and other riskier currencies rebounded against the U.S. dollar as U.S. Treasuries recovered from last week’s losses. The Indian rupee slumped 29 paise to 73.76 against the US dollar in opening trade on Monday, weighed down by significant foreign fund outflows and rising crude oil prices. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.03 per cent to 90.84. At the interbank forex market, the domestic unit opened at 73.76 against the US dollar, dropping 29 paise over its previous close.
Apart from the technical confluence, the euro may find it hard to take advantage of the dollar’s decline. The Swiss franc, the euro and the British pound fell 0.3%, 0.2% and 0.3% respectively against the U.S. dollar. Not as good as it looks Mexico’s Petroleos Mexicanos (Pemex), the world’s most indebted state oil company, reported on Friday a multibillion-dollar net profit.


The latest shortage is steel, where many US manufacturers are having difficulty procuring cold-rolled and hot-rolled steel from mills, reported Reuters. “Unfilled orders for steel in the last quarter were at the highest level in five years, while inventories were near a 3-1/2-year low,” Reuters said. One of the main reasons for the undersupply of steel in the first quarter is the slow restarts of mills, which were halted during the virus pandemic. Launched in 2015, Sovereign Gold Bonds are government securities denominated in grams of gold.
Spot prices for hot-rolled steel hit $1,176/ton this month, the highest in 13 years. Shanghai copper prices fell, after ending February with their best monthly gain in nearly 12 years, as top consumer China reported subdued factory growth due to brief COVID-19-related disruptions. US hot-rolled steel prices are rising the most versus the rest of the world. At the moment, steel shortages are sending spot prices through the roof.
Soaring steel prices have pinched margins of steel-consuming manufacturers. New calls from within the manufacturing industry want the Biden administration to end former President Trump’s steel tariffs.


Saudi seaborne crude exports for last week were seen at 33.1 million bbl (4.7 million bpd) compared to the revised 39.9 million bbl (5.7 million bpd) the week prior. Brent crude futures, the global oil benchmark, rose 1.51 per cent to $65.39 per barrel. The rally in oil prices this year remains driven by fundamentals, with a continued faster decline in inventories than even we expected (just like last month). US crude production dropped by more than a million bpd, mostly due to the output being severely impacted for the past week.
According to Baker Hughes, the Oil Rig count in the US for last week gained by 4 to 309, while Natural Gas rigs rose by 1 to 92.
Ahead of the OPEC+ meeting planned to be held this week, the oil prices extended further. WTI crude oil rises on economic recovery optimism, Iran news. The survey of 55 participants forecast Brent crude would average $59.07 per barrel in 2021, up from last month’s $54.47 forecast. The move came as onshore oil production fell in Texas and North Dakota, the top oil-producing states, outpacing a slight rise in offshore output in the Gulf of Mexico.
The agency also revised down crude production in November to 11.121 million bpd, 3,000 bpd less than previously reported.

United States

Nasdaq Futures are trading up 152 points (up 1.2%) while Dow Futures are trading up by 204 points (up 0.6%) The rupee is trading at 73.26 against the US$. The 50-day MA remains some distance away, although the MACD and On-Balance-Volume remain on established ‘sell’ triggers despite a strong relative performance to the Nasdaq (and S&P). It wants to get back to full employment and yet right now we’re nowhere close to the Fed’s goals. US stock futures are trading higher today, indicating a positive opening for Wall Street.
Textile industry sources say that if the US eases the curbs, then prices could head south. Positive momentum has also been aided by the progress in approving the $1.9trn stimulus package in the US and the authorization of new COVID-19 vaccines. The Nasdaq Composite (COMP), for instance, rose 1.4 percent, although it too gave back most of the gains. Also, I address whether the Apple stock (AAPL) is showing the future of the Nasdaq 100 (QQQ), related stocks and the potential break in the long-term trend-line.
Trump s decision to deprive the company of Google s core apps for its smartphones prompted Huawei to build its own version of Android, known as Harmony.U.S. He is an avid market watcher having followed capital markets in the US and India since 1993.


Beijing has stepped up requirements for entering the city ahead of the NPC meeting this week.


Banks in Europe resisted passing negative rates on to customers when the ECB first introduced them in 2014, fearing backlash. The ECB’s deposit rate, which it charges banks, is minus 0.5%. About 30% of all household deposits in the eurozone are in Germany, according to the ECB.