Open: New York Session | Forex, Metals, Oil, Agriculture November 23, 2020

Agriculture

Downtrend scenario The downtrend may be expected to continue, while the cocoa market is trading below resistance level 2410, which will be followed by reaching support level 2160. Downtrend scenario A downtrend will start as soon, as the cocoa market drops below support level 2665, which will be followed by moving down to support level 2410. MARKET NEWS Chicago soybean futures rose more than 1%, gaining for a seventh consecutive session as dry weather in key suppliers Brazil and Argentina stoked supply concerns.
According to several market sources, Hershey moved to take delivery of thousands of cocoa lots before the December contract expires on Dec. 15. A look at commodity markets includes a rare look at cocoa after a huge spike last week. Farmers had completed the wheat and barley harvest and collected 24.5 million tonnes of corn from 4.7 million hectares, or 86% of the sown area, the data showed.

Currencies

less The haven-linked US Dollar aimed broadly lower against ASEAN currencies such as the Malaysian Ringgit and Singapore Dollar this past week. FOREX: Progress towards a COVID-19 vaccine rollout lifted riskier currencies, keeping the dollar on its downward trend. Once the ten stocks are determined, an investor invests an equal dollar amount in each of the ten stocks and holds them for the entire next year. In global markets, gold prices edged higher today supported by a weaker dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.13 per cent to 92.26. Currently, the index is testing the support of 92 and a break below this level can result in dollar weakening considerably, which can be good of the Indian currency. The US dollar is a paper fiat currency with no real backing to protect its intrinsic and purchasing power. Stocks are higher and the US Dollar lower as a consequence. The US dollar has fallen about 98% compared to gold since 1971 and is continuing to fall.
The dollar then became the petro-dollar, more tied to the price of oil than to gold.

Metals

Silver 7 days Silver 14 days Silver 1 month Silver 3 months Silver 6 months Silver 1 year Preliminary PrepaymentsMarketing communication. One of the reasons we focus on gold is that gold is going to be a major beneficiary of the situation. 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 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.
However, despite positive global cues, gold prices dipped in Indian markets. Gold prices are trading up by 0.2% at Rs 50,333 per 10 grams. In the previous session, gold prices had finished 0.5% higher. London copper prices retreated from a 29-month peak touched in the previous session amid thin trade, as rising coronavirus cases globally tempered optimism over a rollout of vaccines.
Gold collapsed in March related to the tremendous sell-off in equities, which also affected precious metals. Speaking of the precious yellow metal, how lucrative has gold been as a long-term investment in India?

Oil

Additionally, the company holds and manages oil and gas properties; holds oil and gas royalties, and foreign bonds and equities; and provides investment management, counseling, advisory, and dealer services. MARKETS TODAY OIL: Oil prices rose more than 1%, extending last week’s gains as traders eyed a recovery in demand due to successful coronavirus vaccine trials. The price of oil (OIL) held at over $43 a barrel in overnight trading on Sunday and into this morning’s European open, its highest level since early September.
Seventy-three percent of its portfolio consisted of midstream equities that own pipeline assets for transporting natural gas/natural gas liquids, refined petroleum products, and crude oil, as shown below.
The UAE on Sunday announced the discovery of two billion barrels of conventional oil reserves and 22 billion barrels of unconventional oil reserves. That follows the third straight week of gains for oil prices, as progress towards a widely available COVID-19 vaccine has raised hopes of an improvement in energy demand. Unfortunately, crude prices remain depressed which does not bode well for growth in the Oil & Gas industry.
Brent crude futures, the global oil benchmark, rose 0.47 per cent to $45.17 per barrel. These companies are increasing cash flows – and stock prices – by finding ways to get more oil and gas out of the ground. The purchase is the largest by the refiner since the COVID-19 pandemic broke out in the world’s third largest crude oil importer in second quarter.

United States

Because of the Fed’s swift and strong policy response this time around, it was able to arrest the decline and reignite the bull market to new highs. Of the three major US stock indices, only the Nasdaq Composite turned in a positive last week with a 0.2% gain. While the Fed supplies a temporary LIBOR, the market trades a futures contract, then settles these contracts through the delivery of the Fed-defined instrument at the Fed-provided index rate.
The US rig count (RIG-OL-USA-BHI) dropped after eight consecutive weeks of gain with last week s count reported to have decreased by 5 units. (For years investors have referred to “The Fed Put” as protecting them from downside as the Fed continually steps in to prop up the market when trouble arises). The Nasdaq Composite, the market’s home of tech, has notched a better than 1,000-point gain since its October pre-election 30-day lows. This was then followed by positive vaccine news from Pfizer (PFE), which raised investor optimism that the US economy would begin to get back to normal next year.
US stock futures are trading higher today, indicating a positive opening for Wall Street indices. The company has a large vaccine business as well and is actually providing crucial input to BioNTech (NASDAQ:BNTX) and Pfizer (NYSE:PFE) in their clinical programs related to Covid-19. No matter how reluctant the Fed might be to set LIBOR, even temporarily, they are apparently bowing to market participants’ needs.

Europe

Of course, it is also meant to be the final week of negotiations between the EU and UK with many believing a deal could be announced soon. The highlight of this week regarding COVID-19 and restrictions will be Macron’s speech tomorrow that should offer clarity on lockdown end. German GDP (QoQ, Q3), German Ifo business climate index (Nov.), Macron’s televised appearance to offer clarity on lockdown end. We also look at sterling as we await an expected Brexit breakthrough soon and discuss a very interesting move from Chancellor Sunak on infrastructure.
In France, President Emmanuel Macron will deliver a televised speech tomorrow evening at 19:00 GMT to clarify the lockdown rules. Brexit is not in the spotlight this week, but there is another pantomime game to focus on: the endless talks about U.S. fiscal stimulus. less The EU directive for harmonization of covered bond legislation is one step closer to becoming Swedish law. As a result, since March, the ECB has been the first buyer of European public debt, purchasing 70% of newly issued bonds.
Other characteristics include denying climate change, voting for BREXIT and non-readership of the GUARDIAN.
A Swedish investigation on how to implement the EU rules in Swedish law was presented on 4 November 2020.

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