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

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


Liquidity problem | Brazil, the world s biggest exporter of coffee, sugar and orange juice, just had a rainy season that brought hardly any rain, threatening the global supply. Coffee is one of the commodities the world economy is running low on, per Bloomberg. Coincidentally, one of those exchange-traded products, the iPath Series B Bloomberg Coffee Subindex Total Return ETN (JO) was one of our system’s top ten names on Monday. Corn, coffee, wheat and soybeans.


BEFORE THE BELL Wall Street futures rose, and the dollar dipped on renewed expectations of the Federal Reserve not hiking interest rates anytime soon. Wall Street futures rose and the U.S. dollar dipped on renewed expectations of the Federal Reserve not hiking interest rates anytime soon. The US dollar falling could also come into play, so I think that could also be a reason why oil will continue to rise. The rupee started on a flat to stronger note against the dollar, tracking the weakness of the greenback, Reliance Securities said in a research note.
At the interbank foreign exchange, the domestic unit opened at 73.18 against the dollar, then inched 7 paise higher to 73.15 against the American currency. Each has increased less than 0.5% over the past three months.Still, the Canadian dollar has surged almost 5% as the central bank signaled it may dial back stimulus. Most of the Asian currencies are trading stronger against the dollar and could lent support, the note added.
Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. Gold prices also tracked higher in tandem, while the US Dollar wilted. less (Videl length 00:00:44) As we come into Tuesday, we’re back to seeing stocks on the bid and the US Dollar under pressure.


One, if China continues to stimulate steel demand and its production stays higher, iron ore demand will remain at higher levels. Australian ore exports make up 61 per cent of total Chinese iron ore purchases. Chinese factor China is the largest consumer of iron ore, importing nearly 70 per cent of the global shipments. The London-based analyst firm said that Chinese demand for iron ore has been robust after the Covid-19 outbreak in early-2020. This is where analysts and experts feel that sooner or later, iron ore prices could come under pressure.
Copper, iron ore and steel. Till April, China’s steel production was 375 million tonnes (mt), up 16 per cent compared with the year-ago period. In gold’s case, the critical points this year were the mid-to-high $1,700 (breached finally in the last fortnight) and the $1,880 to immediate $1,900 levels open now. With gold shattering the $1,870-an-ounce resistance for the first time since January, silver, its shadow, has been spinning a little magic of its own at the $28 levels.
In Indian markets, gold prices for the latest contract on MCX are trading down by 0.1% at Rs 48,413 per 10 grams.


Middle East crude oil exports were lower week on week at 105.4 million bbl vs 122.7 million bbl seen a week earlier. Global oil benchmark Brent crude futures rose 0.35 per cent to $69.70 per barrel. less Crude oil prices rose in a move that the newswires tied to a brighter demand outlook. No fuel oil exports were observed from Iraq last week, the first such occurrence in the past six months, although export volumes from the country are subject to revisions. BEFORE THE BELL Futures for Canada’s main stock index rose as oil prices gained on optimism of a demand recovery after the reopening of the U.S. and European economies.
Stop The International Energy Agency said the world needs to stop developing new oil and gas fields immediately to have any chance of reaching net-zero emissions by 2050. Southeast Asia dominated the off-taker mix for Middle East fuel oil cargoes last week, with four cargoes signaling for Singapore and another for Malaysia. The world has a stark choice stop developing new oil, gas and coal fields today or face a dangerous rise in global temperatures.
less (Video length 00:04:19) Bill Baruch joined BNN Bloomberg to talk about leisure and travel stocks as well as crude oil’s demand outlook.
For oil traders, 2050 is obviously a long time away as they push the price of a barrel of Brent crude above $70 this morning.

United States

The company’s share price barely budged Monday—a contrast compared with the 7.5% jump last year after The Wall Street Journal reported that NextEra Energy had made a takeover approach. Nasdaq Futures are trading up by 123 points (up 0.9%), while Dow Futures are trading up by 104 points (up 0.3%). Yesterday the S&P 500 closed down 11 points, at 4,163, the Dow closed down 54 points, at 34,328 and the Nasdaq Composite closed down 51 points, at 13,379.
The U.S. Navy will request funding for eight new vessels in the next fiscal year budget, down from the 12 originally sought in a Trump administration blueprint. In the past year, the Fed made no secret that it will remain accommodative beyond the point where the economy will recover. Their Wall Street arms, which underwrite stock offerings and trade stocks, posted strong results in a roaring market. McConnell has somehow managed to survive being an occasionally harsh critic of Trump, even on matters that Trump cares about, without losing his leadership position.
May arrivals have surpassed the previous month and were currently totalling 152,000 tons compared to April which saw 145,000 tons arrive from the US. The only standout is Dallas Fed President Robert Kaplan, who supports raising rates already next year. Both the Fed and the ECB have indicated that monetary policy will stay accommodative until the scars from the coronavirus crisis have healed.


Trade spat | Hong Kong has closed its trade office in Taipei, the latest tit-for-tat exchange between the cities as Beijing works to isolate the democratically ruled island. Hong Kong has closed its trade office in Taipei, the latest tit-for-tat exchange between the cities as Beijing works to isolate democratically ruled Taiwan. The Beijing-based company said total revenue rose 25% to 28.13 billion yuan in the first quarter, boosted by non-advertising revenue growth of 70%.
In our view, this signals that Beijing is mainly aiming to rein in unfair competition and monopolistic behaviors regarding data.


In December last year the EU adopted its huge Next Generation EU recovery package (NGEU) worth EUR 750bn, of which a large part will be financed through joint loans. The EU ETS price is the natural reference for auction prices and allowance traded price in the new UK ETS kicking off 19 May. Help wanted | The U.K. government is recruiting an external adviser to identify new opportunities created by Brexit. This has never happened before, and before the Recovery Fund can be set to work, the EU national parliaments must ratify the agreement.
But the situation exposes the EU’s weaknesses in much the same way as the EU’s scandal-ridden vaccination programme has done. U.S. officials are also considering the issue, and the European Union has opted for its own standard-setting body.