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



Less sweet | The global sugar supply crunch is about to get worse amid a food-versus-fuel debate playing out in top exporter Brazil. Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit.


In international markets, gold prices edged lower as US Treasury yields rose to an eight-week high and the dollar firmed after a bigger-than-expected rise. This could force the Federal Reserve to raise interest rates, which in turn could boost US dollar against other currencies. BEFORE THE BELL Futures for Canada’s main stock index rose as gold prices gained on a weaker U.S. dollar after Federal Reserve officials downplayed inflation concerns. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.05 per cent to 90.70.
“Most of the Asian currencies are trading weaker against the dollar and could weigh on sentiments,” Reliance Securities said in a research note. Past & PrologueData Watch The South African rand has returned about 4% versus the dollar this year, the best performance in a basket of high-yielding currencies tracked by Bloomberg. At the interbank foreign exchange, the domestic unit opened at 73.41 against the dollar, then inched 6 paise higher to 73.36 against the American currency.
Only a drop in expenditure could further pressure the dollar, and that seems highly unlikely. On Thursday, the bleeding stopped, with stocks rebounding out from the weekly low and the US Dollar coming back under pressure. While another 9.8% leap is not on the cards, any expansion could reignite the rush toward the dollar.


The Gold price required to back the monetary base is calculated from US gold reserves, the Gold price, and the monetary base. Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic. In 2008, which was not too long ago, the Gold price reached a 30% backing of the monetary base. Gold prices are trading up by 0.3% at Rs 47,588 per 10 grams. less Anti-fiat gold prices aimed cautiously higher on Thursday, reversing some of the losses experienced the prior day.
That trend seems to be starting to reverse, with iron ore prices in Singapore tumbling below $200 a ton overnight, after trading as high as $233 earlier this week. In the 1930s and by the end of the 1970s, the Gold price reached a level that backed 100% of the monetary base. From 2001 to 2011, the percentage of global assets in Gold went up roughly 4x while the price gained almost twice that amount.
Today, the Gold price would need to reach $22,000 to achieve the same feat. That said, there is room for gold prices to weaken before testing that trendline.


Meanwhile, international oil benchmark Brent crude was trading 0.42 per cent lower at ₹66.77 per barrel. Global oil benchmark Brent crude futures fell 0.39 per cent to USD 66.79 per barrel. Oil prices rose, though gains were capped by the coronavirus situation in major oil consumer India and the restart of a fuel pipeline in the United States. Oil prices are almost unchanged this morning with the front-month ICE Brent contract seen at $66.93/bbl at 0800 GMT, down by $0.12/bbl compared to yesterday s settlement.
Crude oil prices are stabilizing in yesterday’s trough after June WTI slid 4.3% yesterday. Spilling over | The meteoric rise in palm-oil prices is poised to inflate costs for everyone from restaurants to confectionery and cosmetic manufacturers, and could potentially change consumption patterns. Goldman Rebrands Fracking Research as Green Shift Accelerates It s taking the oil out of oil services. The June 92 RON Gasoline contracts declined $2.94 at $71.70/bbl; 3Q ’21 was down $2.48 at $71.26/bbl and the 2H Cal ’21 contract declined $2.28 at $70.61/bbl.
This normally results in downward pressure on oil prices.
July ICE Brent futures were $1.60 lower at $67.06/bbl, while the rest of the 48-month forward contracts traded between -$1.63 and -$1.10.

United States

This happened due to fears of rising inflation in the US due to increasing consumer prices, high commodity costs as well as reports of labour shortages. It seems the recovery in the US jobs market has eased at least some worry associated with the rise in inflation. US stock futures are trading higher today, indicating a positive opening for Wall Street. Fed Vice Chairman Richard Clarida said rising inflation is a sign of pent-up demand in the economy.
In US stock markets, Wall Street indices climbed on Thursday, rebounding from steep losses in the previous session, as investors picked up shares after the pullback. Having said that, the Fed’s dovish tone could numb a market reaction to unexpected beats. For example, about 29% of banks eased their underwriting standards for credit cards in the first quarter, and only 2% tightened them, according to the Fed. Image Source: Unsplash St. Louis Fed President James Bullard spoke over the past 24 hours, saying that it is still ‘too early’ to talk about tapering bond purchases.
The US Center for Disease Control (CDC) announced new guidelines, allowing fully immunized people to drop their face masks, seemingly in an effort to stop slowdown in jabbing. Aurora’s shares will start trading on the Nasdaq on May 25 under the ticker symbol “ACB.”


Northern Ireland s Democratic Unionist Party selects a new leader today, setting the stage for a heightened campaign against the Brexit deal that has inflamed tensions in the region. Prime Minister Boris Johnson has come short of suggesting a reversal in policy but he has expressed concerns about the . As for the key news, we note the ECB’s report on its monetary policy meeting. The only problem is the European Union member hasn t reciprocated, and until it does most Brits won t be allowed in.
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