Open: New York Session | Forex, Metals, Oil, Agriculture November 09, 2020



Downtrend scenario A downtrend will start as soon, as the cotton market drops below support level 67, which will be followed by moving down to support level 57. Uptrend scenario The uptrend may be expected to continue in case the sugar market rises above resistance level 15.10, which will be followed by reaching resistance level 16.50. less Uptrend scenario The uptrend may be expected to continue in case the cotton market rises above resistance level 71.80*, which will be followed by reaching resistance level 75.40.
Last month, high demand from importers and worries about a delay in winter wheat sowing had pushed Ukraine’s milling wheat export prices to the highest in two seasons. The USDA forecast that farmers will seed 90.0 million acres of corn in the 2021/22 crop year, down from 91.0 million for 2020/21. For soybeans, plantings are projected to rise to 89.0 million acres, from 83.1 million. Todd Becker, chief executive of biofuels maker Green Plains Inc., said a Biden EPA may be more favorable to corn-based fuel additives.


Dollar indexThe dollar index lost nearly 2 per cent last week, as it declined from 94.04 to 92.23. The dollar weakened more broadly, with the WSJ Dollar Index dropping 0.17% to 87.04, also reaching levels last hit in 2018. The dollar however weakened, which boosted the commodities priced on the dollar as they became more affordable for investors holding other currencies. Even as the rupee witnessed higher volatility, it ended the past week almost flat — closing at 74.2, as against preceding week’s close of 74.11 against the dollar (USD).
The reduction in perceived risk also means a weaker dollar (because people feel less need to shelter in U.S. assets) which in turn helps American securities prices. MARKET NEWS Gold prices rose to a near-two month high, propelled by a weaker dollar and hopes of more coronavirus stimulus measures under U.S. President-elect Joe Biden. Globally, gold prices edged higher supported by a weak dollar and hopes of more US stimulus amid optimism about the outlook under a Joe Biden presidency.
This has driven a sharply weaker US dollar, especially versus commodity currencies and EM currencies. less There’s been a whole lot of optimism around the result of the US election, with stocks higher and the US Dollar lower as a consequence. Tariffs in particular have pressured the yuan, and in August 2019 the currency broke below 7 yuan per dollar, a level authorities had previously defended.


It’s worth noting that while gold recovery rates remained strong at 93%, they did fall 100 basis points year over year due to the lower gold grades processed. (Source: Company Presentation) Currently, Sabina’s Back River Project is home to 7.18 million ounces of gold resources at an average grade of 6.26 grams per tonne gold. Galiano Gold owns a 45% interest in the Asanko Gold Mine Joint Venture (JV), but all figures are reported on a 100% basis unless otherwise noted.
This is due to non-recurring COVID-19 related costs, higher royalties paid due to higher gold (GLD) prices, and design changes to the tailings storage facility. Therefore, I would be shocked if gold production came in above ~63,000 ounces for the quarter, the current trailing twelve-month average. These are incredible grades that are well above the average resource grade of 6.26 grams per tonne gold. However, Harmony Gold Mining Company (HMY) is also available at a similar price with similar costs and a much more diverse portfolio with multiple assets.
Gold prices in domestic markets moved higher today as the precious metal extended recent gains in the global market. This is because the higher gold price is starting to make higher-capex projects more attractive, given their much faster payback. Based on the 2015 Feasibility Study, costs were expected to come in at $671/oz, below the peer average of $711/oz for large-scale gold projects across all jurisdictions.


Saudi seaborne crude exports for last week were seen at 42.1 million bbl (6.0 million bpd) compared to the 45.2 million bbl (6.4 million bpd) the week prior. It forecast oil demand to fall by 8.9 million barrels per day (bpd) in 2020, but rise by over 7 million bpd in 2021. The ongoing pandemic could mean that – without a major production cut from the oil producers – supply may continue to outpace demand. Crude oil prices might be walking a tightrope in view of weaker demand prospects (BNO).
Meanwhile, Brent crude futures, the global oil benchmark, rose 2.71 per cent to USD 40.52 per barrel.
China, the world’s No.1 crude oil importer, bought 42.56 million tonnes of the resource last month, data from the General Administration of Customs showed on Saturday. As for doubts over the incoming administration s attitude toward fracking, the current price of crude oil, hovering around $40 per barrel, renders them moot. A – Upstream segment Combining oil and gas production, Exxon Mobil produced this second quarter, down year over year and up slightly sequentially (please see graph history above).
The next logical step is to cut the dividend by until a time the demand for oil returns to normal, and the company can generate enough free cash flow. When headlines struck the other day that Russia and Saudi Arabia were discussing extending the output cuts past January 1, 2021, the market took notice and oil prices leaped.

United States

Those who have invested in the US market or are looking for opportunities to invest in the market should not be flustered about the outcomes of the election. Indian investors who are keen to invest in the US stock markets should not be impatient and re-plan their investment allocation based on the election results. They will now diversify across market capitalisation with the outcome of the US election getting clear, he said. less Stock markets in the US and around the world soared last week, delivering their best week since April.
Edited excerpts: With the election of the new US President, what will be the impact on the US market, from a near-term and long-term perspective? The US presidential election comes to a close with the Democratic party candidate Joe Biden set to become the next President of the United States. Provides investment operations outsourcing platforms to mutual fund companies, banking institutions, traditional and non-traditional investment managers worldwide and family offices in the US.
Low interest rates and Fed stimulus have helped buoy financial markets to the point where equity values may have been divorced from earnings prospects. Some sectors in the US that are likely to see either revival or accelerated growth after the election would be airlines, technology, electric vehicles, construction and engineering and renewables. Biden is largely ignoring President Donald Trump’s continued refusal to concede defeat, as the incumbent seeks legal avenues to challenge the election.


Beijing announced new draft regulations for fintech firms, earlier this month, which would force Ant to significantly change its business model. A look at the Chinese currency, which has been wielded as a weapon during the hostilities, shows that Beijing is now extending the hand of welcome.


While the FTSE may be pressing ahead on positive international drivers, the UK domestic outlook remains cloudy with little progress made on Brexit trade talks. EU governments are considering a coordinated crackdown on Islamist radicalization, according to a draft statement that has been prepared for a meeting Friday of home affairs ministers. (BNO) Brexit is very much back in focus as Michel Barnier returns to London to resume Brexit trade talks with his UK counterpart David Frost.
European Union ministers last month backed a binding 2050 climate neutrality goal. By now, I have built up excellent skills and experience in analyzing macroeconomic and political developments in Europe, the Eurozone and Germany, including ECB watching. The main difference is that he will work in close coordination with the EU, Japan and Australia in this matter. Main focus: Europe, Eurozone, Germany and ECB.