Open: New York Session | Forex, Metals, Oil, Agriculture March 11, 2021



Robusta coffee futures on ICE rose on Wednesday, regaining some ground after their recent decline to a five-week low, while sugar and cocoa prices also gained. They could include offering more credit, crop insurance and trade support mechanisms for corn farmers to raise production. Russia doubled its wheat export tax to 50 euros ($60) a tonne in an attempt to curb coronavirus-driven food price inflation. “We started the programme with areca nuts followed by cocoa, rubber and, later, pepper from 2016. Pepper procurement in Kerala has started from Idukki and Kottayam.


MARKET NEWS Gold prices rose to their highest level in more than a week, after softer U.S. inflation data halted an advance in Treasury yields and the dollar. The government giving all that money for free means the US dollar is worth less and less. Your dollar is going to buy less than it did, and in the future it will buy even less. Silver also is in demand as a safe haven asset and as an alternative to the US dollar and other fiat currencies. As the government prints more money, the value of the US dollar continues to plummet in value.
Anti-fiat gold prices capitalized on this dynamic as the US Dollar weakened. Weak US inflation figures also contributed to cooling down the dollar. That could boost the euro, but the slow-moving institution is unlikely to act with speed.


It’s a poor-man’s gold, so far more investors can buy silver than gold, which increases demand and, therefore, the price. The key to the short squeeze in silver is that as the economy opens up again, demand will increase for silver for industrial uses, which will further strain supplies. The world’s biggest listed miner is looking to grow its exposure to “future facing commodities” or those expected to be cornerstones of the world’s transition towards cleaner energy.
It was only until 2020 when a massive 83 tons of Chinese gold bars used as loan collateral turned out to be nothing but gilded copper. Gold prices could extend gains if the central bank appears relatively more aggressive about rising longer-term rates in government debt. Physical gold and silver have been valued for thousands of years, which also gives them an advantage in terms of risk over Bitcoin. The story unfolded last summer when commodities firm Mercuria Energy Group Ltd bought $36 million of copper from a Turkish supplier.
Legal documents pieced together from Bloomberg outlined how the thieves swapped out the real copper while sealed in containers with shiny paving stones. Gold and silver offer far more stable value than fiat paper currencies. The latest fraud has forced Mercuria to seek damages in Turkish courts and a U.K. arbitration case against the copper supplier, Bietsa.


Stabilising crude oil prices would lead to capex by oil producers. less Crude oil prices aimed higher over the past 24 hours, brushing aside a fairly bearish inventories report from the Department of Energy (DOE). Crude inventories rose by 13.8 million barrels in the week to March 5 to 498.4 million barrels, compared with analysts’ expectations in a Reuters poll for an 816,000-barrel rise. However, while falling fuel stocks is supporting to prices, the EIA report also showed another week of large build in US crude inventories, which weighed on prices.
The country has been recovering slowly since November last year, primarily driven by the reviving demand for crude oil. Last week, crude stockpiles surged 13.8 million barrels against expectations of a 0.33 million gain. Interest rates already are rising and prices of basic commodities, such as grains and crude oil, are all rising rapidly. As such, crude oil prices may continue to benefit over the remaining 24 hours.
Malaysian palm oil futures snapped a six-session rally, hit by dismal partial March exports data, but falling inventories underpinned prices. Crude oil prices continue to consolidate between 64.05 and 66.58, peaks achieved in 2019 and 2020.

United States

In the US, more than 214 million people play video games one hour or more per week and 75% of households have at least one person who plays. Those three advanced economies had banking systems that survived relatively undamaged, meaning record low interest rates fed through to household lending far more directly. While the Fed sees higher returns as reflecting better growth prospects in the US, the old continent continues struggling. The growth-linked commodity seemed to focus on general risk appetite as Wall Street continued to move higher following some recent market volatility.
However, despite the softer core inflation reading from the US, Treasury yields could yet climb on fiscal stimulus bets.
For credit markets, however, the returns just kept coming once the Fed stepped in with its strong policy support in late March. Softer-than-expected core CPI data from the US somewhat cooled underlying inflation expectations, undermining gains seen in longer-term Treasury yields. Current fuel inventories in the US also experienced another week of large draw down according to the Energy Information Administration (EIA).
European indices are heading higher after an upbeat session on Wall Street which saw the Dow Jones reach a fresh all time high. The more conventional IPO market is also sporting extreme valuations as Wall Street is busy wheeling and dealing in a zero-interest rate environment.


Finally, from last week s arrivals, we saw HAFINA BEIJING (9856634) enter berth at Rotterdam however, she is now anchored outside port for Unipec with some cargo remaining.


In the domestic calendar, all the attention will be on the ECB interest rate decision, although consensus sees the central bank keeping the monetary conditions unchanged. If economic expansion is sluggish – in line with the EU’s snail’s pace vaccination campaign – will the bank act to lower bond yields? ECB President Christine Lagarde has the power to push returns on debt lower – either by front-loading buys, or even expanding the bank’s current “envelope” of €1.850 trillion.
No change in rates is expected, instead investors will be watching to see how the ECB looks to deal with rising bond yields. EUR/GBP trades lower for the 7th straight session as investors look ahead to the ECB rate announcement (FXB,FXE). However, traders are expected to closely follow Lagarde’s press conference and any comment on the recent rebound in yields. Ahead is also the ECB monetary policy announcement. Pfizer relief on the way to the EU to treat hotspots within the bloc.
The ECB’s new forecasts will likely be only marginally better. : ECB interest rate decision/Press Conference/Economic Projections (Thursday) – EMU’s Industrial Production (Friday).