Open: New York Session | Forex, Metals, Oil, Agriculture May 26, 2021

Companhia Nacional de Abastecimento (Conab), the government’s food supply and statistics agency, said total coffee output would plunge 22.6% in 2021, to an expected 48.8 million 60-kilo bag. We’ve already mentioned coffee shortages are brewing as global supplies are shifting into a deficit as drought in Brazil slashes output. ICE Coffee futures for Arabica coffee have soared to multi-year highs on output declines in South America. Starbucks, and many other coffee chains, could soon feel the burn as wholesale price increases will likely be passed onto consumers.
There are two main species of coffee: Arabica and Robusta.

The depreciation of the dollar after the Trump-induced flight to dollar assets had already raised import prices. The fact that iron and steel import prices have diverged from the dollar exchange rate is consistent with steel tariffs have “bite” as overall economic activity picks up. Stephen Innes of SPI Asset Management noted that growing inflation risks and weaker dollar boosted gold’s status as an inflation hedge. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action.
Weaker US treasury yields and the US Dollar trading at 4.5 month low helped Gold push above resistance at 1890. A soft U.S. dollar and growing concerns over higher inflation rates pushed the yellow metal above $1,900 an ounce. While it appears to help drag up the Australian dollar, the greenback is mostly steady to a little firmer against the major currencies. The US dollar is part of the issue, as a falling greenback tends to help gold in general.
less Gold close to breakout and dollar close to break down. The yellow metal climbed during Wednesday’s Asia-Pacific trading session, capitalizing on more weakness in the US Dollar.

The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. While industrial commodities, like iron ore and steel rebar, are trading lower, gold has pushed above $1900 for the first time since January. BEFORE THE BELL Futures for Canada’s main stock index rose as gold prices jumped above the key $1,900 level for the first time since January. Import price index – iron and steel, 2000=100 (blue, left log scale), and PPI – iron and steel, 1982=100 (red, right log scale).
Ivanhoe has said it expects Kakula to be the world’s highest-grade major copper mine, with the concentrator producing concentrate grading around 57% copper. Gold prices are trading up by 0.3% at Rs 40,029 per 10 grams. Spot gold is currently trading at $1,905.31 per ounce as of 0904 GMT (GLD). Year-on-year April growth rate of PPI – iron and steel vs. year-on-year April growth rate in import price index – iron and steel, 2007-2021.
Gold prices edged higher in Indian markets today, following the uptick in global rates. less Gold prices continued their upward momentum on Wednesday.

Oil traded in a narrow range, supported by optimism about improving U.S. fuel demand but with the prospect of returning Iranian oil keeping any gains in check. Today’s investment survey from Statistics Norway shows higher estimates for both 2021 and 2022, supported by higher oil prices and last year’s tax relief package. An industrial body in the US estimated oil inventories to have fallen by 439,000 bbl while estimating gasoline inventories to have fallen by 2 million bbl.
less Today’s investment survey from Statistics Norway shows higher estimates, suggesting oil investments will not be a drag on the Norwegian economy this year.
Iranian government spokesperson expressed optimism on an agreement being reached soon which could lift the sanctions on the country s beleaguered economy and oil industry. Never before have climate concerns become so crucial to director contest at a major oil company, said proxy experts. Middle East fuel oil exports rebounded last week following a mid-month lull in loadings among key exporters. Oil investment in 2021 are estimated at NOK 181.9 bn, which is 4.8 % higher than estimated in the previous quarter.
This means that the actual decline in oil investments in 2022 will be much less severe than what the survey currently indicates. Gasoline inventories fell by 2 million barrels andd istillate stocks fell by 5.1 million barrels, the data showed, according to the sources.

Wall Street estimates have the company’s combined revenue from domestic and international theme parks returning to growth in the current quarter ending in June, according to Visible Alpha. The Fed had never bought corporate bonds; free addicting stock trading apps that encourage everyone to follow hot stocks were never this popular. Indeed, Wall Street analysts expect Disney’s theme park operating margins to reach a new high of 24% for the fiscal year ending in September 2023, according to FactSet.
But Wall Street estimates that growth has since decelerated significantly and should slow further to less than 24% growth for the quarter ending in April 2022. You can’t say the Fed caused x% of the stock market’s increase last year. Pinduoduo Inc: Chinese e-commerce platform s quarterly revenue beat Wall Street estimates, driven by steady demand for online shopping following the COVID-19 pandemic. On the other side, the Fed believes it must maintain extreme policies ($120 billion QE per month & 0% Fed funds rate) until the labor market reaches full employment.
This implies conditions will probably tighten within the next few quarters which would be in line with the Fed ending QE and potentially hiking rates thereafter. While Fed Chair Jerome Powell s term ends early next year, three quarters of economists surveyed by Bloomberg expect him to be reappointed. US stock futures are trading higher today, indicating a positive opening for Wall Street.

Still, China lashed out at New Zealand after its parliament passed a motion declaring severe human rights abuses are taking place against Muslim Uyghurs in Xinjiang. But the issue has come under scrutiny after Beijing imposed a range of tariffs on Australia during a period of rising diplomatic tension. Under President Xi Jinping, it has pledged to reach peak emissions before 2030, and to achieve carbon-neutrality by 2060.

EU Seeks Astra Court Order to Supply Vaccines Its slow vaccination start is being partly blamed on the supply shortfall. The European Central Bank (ECB) will review its emergency bond purchases in light of economic recovery and declining COVID-19 cases. The EU wants the company to deliver at least 120 million vaccines by the end of June. What you should read Boris Johnson Former Aide Assails Response Some officials went skiing instead of working the virus, he said.
But ECB policymaker Yannis Stournaras warned the central bank that the recovery remained fragile and there is no evidence of high inflation in the foreseeable future. His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He expressed support for the ECB’s €1.85 trillion Pandemic Emergency Purchase Program.