Open: New York Session | Forex, Metals, Oil, Agriculture March 16, 2021

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


Egypt, the second largest buyer of Russian wheat after Turkey, bought 360,000 tonnes of Romanian wheat last week. MARKET NEWS Chicago corn futures edged higher to notch an eight-day peak after a U.S. government report showed that export demand for the grain remained high. Russia imposed high wheat export tax from March 1, and the pace of its exports is down sharply. Raw sugar prices slipped on Monday as the dollar strengthened, although near-term supply tightness limited losses.
Ivory Coast, the world’s top cocoa producer, is in the dry season that runs from mid-November to March, when downpours are poor or scarce. Total U.S. corn exports have not been dragging, though. Coffee and cocoa also fell.


Last year’s finale in criminal prosecution of JPMorgan Chase, and the billion-dollar fine, apparently changed nothing. There have been COVID lockdowns, a disputed presidential election, and multi-trillion-dollar federal deficits and bailouts. That is a key downside driver for the euro.


However, as the global economy has gradually reopened and the demand for steel has picked back up, the steel industry is poised to make a strong comeback. Shanghai aluminium prices hit a 9-1/2-year high, as supply concerns rose after an aluminium hub in top consumer China ordered power cuts and output curbs. With excess reserves and falling prices, global steel production fell 1.4% year-over-year in the first quarter of 2020. In global markets, gold prices were flat today ahead of the outcome of a U.S. Federal Reserve policy meeting.
Source: Unsplash The global lockdown and subsequent social distancing restrictions compelled by the COVID-19 pandemic caused the steel industry to plummet over the first two quarters of 2020. The near halt in industrial and manufacturing activities in China contributed significantly to a global supply glut because China is the world’s largest consumer of steel. MARKET NEWS Gold prices firmed as U.S. Treasury yields eased, while investors awaited a U.S. Federal Reserve meeting which is likely to tackle concerns over rising inflation.
Gold prices are trading up by 0.2% at Rs 44,980 per 10 grams. Amid weak global cues, gold prices struggled in Indian markets. So Monday I bought silver mining stocks WPM and PAAS along with gold miner FNV.


A Reuters poll of analysts forecast the crude oil inventories to have increased by 2.7 million bbl during the week to Mar 12. Oil prices dropped as rising stockpiles in the U.S. added to the risks to a demand recovery after countries including Germany and France halted COVID-19 vaccinations. US crude oil inventories are forecasted to have increased over the week as US refineries shut during the Texas deep freeze are yet to resume full operations. Crude benchmarks have steadily climbed throughout 2021 as major oil producers restrained supply and coronavirus vaccine distribution quickened, feeding hopes of stronger economies and fuel demand.
Meanwhile, the global oil benchmark Brent crude was trading 0.83 per cent lower at $68.31 per barrel. That said, even if warmer weather doesn’t manifest this week as the NOAA’s forecast lays out, natural gas prices face decreased demand going into the summer. Overall, the expected warmer weather – especially across the northeastern US – will likely weigh on demand, driving natural gas prices lower.
London-listed Petrofac shares fell as much as 12% to hit session lows after the company said UAE’s state-backed oil firm, ADNOC, had notified it of the decision. Prices have broken below a key trendline from the September swing lower earlier this week, severely degrading natural gas’s technical posture. Major oil importer India has also been seeing rising cases of infections in the recent weeks.

United States

Post the Federal Open Market Committee (FOMC) meet and a possible affirmation of the dovish stance by the Fed, the market may resume its upward move. The major trigger now is the US bond yield which has the potential to move huge money,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. A weak retail number may provide some short relief from inflation worries for Fed policymakers who begin their two-day meeting today. The Fed will likely walk a fine line between acknowledging the economic improvement without scaring investors of rising borrowing costs.
Money managers are looking to the Fed to address the rise in bond yields when the policy review concludes Wednesday.
This in turn has created an enormous money supply, and with constant bond purchases, the Fed’s balance sheet is massive. Contracts for the technology-focused Nasdaq-100 gained 0.3%, suggesting the tech sector could extend its rebound when the stock market opens. Current Fed policy was put in place to support the economy and protect it (and 330 million Americans) from a second devastating Great Depression.
Since leaving Wall Street I’ve dedicated my financial career towards studying this situation and helping people understand what’s actually happening. Many people have opinions about the policy, but I’m not here to judge current (or past) Fed policies.


Beijing wants Alibaba to sell media assets including the South China Morning Post, concerned by the tech giant s influence over public opinion. Xi Jinping warns against tech excess in sign crackdown will widen.


Already badly lagging on distribution, EU countries including Germany, Italy and France suspended use of AstraZeneca Plc s Covid-19 vaccine over fears of blood clotting. The botched EU vaccine rollout campaign will dominate the call of the bloc’s health ministers this morning. Senator Amy Klobuchar, and EU antitrust chief Margrethe Vestager speak at Bruegel event EU finance ministers hold video conference Like the Brussels Edition?Don t keep it to yourself.
The EU is also working on creating a digital contact-tracing system which will let member states better track outbreaks as people travel across borders. Tech Taxes | EU finance ministers today will discuss progress toward taxing tech giants like Google for revenue they generate in Europe, no matter where they book it. The survey was also mostly taken before the weekend’s regional elections, which dealt a blow to Chancellor Angela Merkel’s center-right party. This will significantly impact an already hampered EU vaccine roll-out.
It s been a disastrous few days for the European Union vaccine rollout. Jack Daniels | American rum distillers and French winemakers celebrated this month when the U.S. and EU suspended tariffs on billions of dollars of each other s exports. Germany and France have both halted the shot, despite the European Union’s drug regulator reiterating its support for the treatment.