Open: New York Session | Forex, Metals, Oil, Agriculture March 18, 2021



Last year’s lower continuous corn yields because 2020’s late season dryness could also boost bean acres along higher corn fertilizer prices this winter. Overall, a 500,000 jump in corn to 92.5 million and 1 million increase in beans to 91 million acres are expected vs the Ag Forum forecasts. This also likely means lower spring wheat, durum (WEAT), oats, and barley seedings vs. last year. 2020’s Midwest Derecho will switch many fields to soybeans to help control their volunteer corn problem.
Soybean intentions have also been lower than the USDA outlook 8 of the last 13 years. It is also used in the production of ethanol as sugar is needed to ferment. Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit. Starbucks is the world’s largest coffee house chain. Mish on Coffee and Sugar Exchange less Wealthsimple Trade or Questrade? Specifically, we look at sugar, which is found in most processed foods.


The aussie is today’s main growth engine for the FX market, moving higher against the dollar on the back of strong labor market data out of Australia. less What a difference a day makes – investors have changed their reaction to the Federal Reserve’s dovish decision and are now pushing Treasury yields and the dollar higher. Topping the leaderboard are the Australian dollar (+0.53%) and the New Zealand dollar (+0.27%). FOREX: Spiking U.S. bond yields boosted the dollar, helping it to revive from two-week lows after the Federal Reserve’s push back against speculation over interest rate hikes.
The flip side of this exceptionalism is a growing fear of higher inflation that could eventually reverse the dollar’s fortunes, according to some investors. If market participants continue to brush aside rising yields after the FOMC meeting, the downward correction in the dollar will gain momentum. In other words, it is the number of times one dollar is spent to buy goods and services per unit of time.
Spiking U.S. bond yields boosted the dollar, while spot gold fell. The US dollar fell sharply overnight making the greenback-denominated metal cheaper for non-US investors. The dollar has risen nearly 2.5% against the currencies of the U.S.’s major trading partners since early January.


BloombergNEF estimates that global copper demand in both the clean power and the clean transport sectors will double in the next decades, to almost 5 million tons per year. Those calls – including a direct tax on sales – have gained impetus in recent weeks as copper prices hit a decade-long high. Gold prices in Indian markets jumped today after the US Federal Reserve maintained its easy monetary policy stance. Gold and silver prices gained as yields on US 10-year Treasuries held relatively steady at 1.66%.
Gold prices are trading up by 1% at Rs 45,269 per 10 grams. ArcelorMittal Launches Green Steel Carbon Offset Program Customers can purchase vouchers along with their steel orders to help offset carbon emissions. The ETF wrapper has allowed all levels of investors access to the likes of stocks in South Korea, bank loans, gold, and hedge fund strategies, with a brokerage account. Nickel miners have been looking to swoop up projects and shore up their output, seeking to benefit from soaring prices of the battery metal used to make electric vehicles.
In his writing and research, Sumner specializes in monetary policy, the role of the international gold market in the Great Depression, and the history of macroeconomic thought. On MCX, gold futures rose 0.8% to Rs 45,189 per 10 grams.


In the 1970s, oil was still widely used as a power generation fuel, and coal-fired generating capacity was added to replace it when oil prices soared. Oil prices steadied after official data showed a further increase in U.S. crude and fuel inventories. Number one: If oil and gas prices rise consistently and the returns on capital increase, investors might demand more investment. State-run PKN will receive 3.6 million tonnes of crude oil per year from Russia’s Rosneft under a two-year supply contract signed on Tuesday.
That should increase demand for oil as increasing output fuels the need for the commodity, raising prices in the process.
From a fundamental perspective, oil prices have been suffering from news of rising US inventories of the commodity. But even when oil prices are rising, as they had been in 2018, for example, this has only meant a smaller miss (undershoot). The last time oil was $100 a barrel, in 2014, only 300,000 electric passenger vehicles were sold. In the 1970s, spiking oil prices created a boom that lasted into the early 1980s. Oil prices were “unexpectedly” crashing raining on her recovery-like parade.

United States

While the Fed remains on track to keep rates lower for longer, it’s notable that the central bank upgraded its economic growth and inflation forecasts for 2021. Japan s Nikkei ended higher, propelled by the Fed’s projection for a rapid economic growth and pledge for low rates. The rise came despite the Federal Reserve’s comments today that reaffirmed its commitment to hold rates steady – near zero percent for the Fed funds target rate. Stuck at 7 bps since mid-February, around 9 bps in late January, this technical cash side flood of money markets would surely have reached fed funds.
Powell said current policy was appropriate and there is no reason to push back against the rise in Treasury yields, which hit pre-pandemic levels before the Fed’s announcement. Japan s Nikkei ended in the green, propelled by the Fed’s projection for a rapid economic growth and pledge for low rates. But if this responsible for low bill yields, as many suggest, why hasn’t the effective fed funds rate moved at all recently?
Isolating market rates, factoring for repo, even the Fed is thinking this way even if it has no real idea why. With the Fed risking allowing policy to fall behind the curve, investors are showing signs they are worried about inflation. Despite the growth in Inflation, the Fed expects the growth to be highest in the nearly 40 years.


The deal is comparatively unambitious—but is a potential launchpad for further economic integration with Beijing as an influential participant.


The ECB last week announced that they will front load the bond buying program. less The Commission propose a Digital Green certificate to secure safe free movement inside of EU. The certificate will be open for all EU members and for Iceland, Switzerland, Norway and Liechtenstein as well and will include a QR code with the neccesary information. ECB Says Governments Must Get Stimulus Done EU recovery fund is still months away from disbursements. The EU medicines regulator is expected to announce its decision on the AstraZeneca Plc vaccine.
Whats the talk The EU Commision has proposed a a Digital Green certificate yesterday. Christine Lagarde is also speak later today. John AingerWhat s HappeningVaccine Fight | The EU s vaccine problems don t end there.