Open: New York Session | Forex, Metals, Oil, Agriculture November 25, 2020

Agriculture

Grain traders and the government have agreed that the volume of wheat available for export this season must not exceed 17.5 million tonnes. The farmers who raise those animals, rely on a steady supply of feed grains, such as corn, soybean meal and wheat to produce and bring those animals to market. New York cocoa hit a nine-month high on Tuesday, boosted by continuing tightness in nearby supply in the physical and futures markets, while sugar prices fell.
Soybeans tend to follow a pattern where prices begin to decline in the July-August time frame, continuing through “February break,” before reaching their seasonal highs in the summer. Family-controlled Casillo is a large wheat trader and miller, specialising in the durum wheat variety used in pasta. Corn futures prices are nearly 20% higher than they were for Thanksgiving 2018 and 2019, and almost 25% higher than Thanksgiving 2017. Similarly, there is a seasonal trend in the supply of soybeans, influencing price and producing patterns along the way.
It also covers the commodities market daily focusing on in-depth technical developments in GOLD, CRUDE OIL, SILVER, CORN & WHEAT. Corn futures are trading at the highest price since a recent peak of about $4.60 in June 2019. If capital gains are on the table, enjoy the sugar rush.

Currencies

This reveals that adjusted earnings for the year rose half a dollar to $1.26 per share, as that number is quite ”clean”, not excluding large stock-based compensation expenses. During Yellen’s prior tenure as Fed Chair, Fed policy uncertainty fueled fairly long-lasting strength of the dollar, and we were consistently Dollar bulls then. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.16 per cent to 92.08. The perception must be that you could see a better, shall we say more formal setting, around the Dollar as we go forward next year. But the losses of the yellow metal were capped by a weaker dollar that made the bullion cheaper for investors using other currencies. In global markets, gold prices were muted today, supported by a weaker dollar.
During that same time period, both gold and silver were lower and the U.S. dollar traded in a sideways channel. He is also Chairman of SchiffGold, his precious metals dealer, Euro Pacific Asset Management, and Euro Pacific Bank, his brokerage firm for international clients. He is also … more Peter Schiff is the CEO and Chief Global Strategist of Euro Pacific Capital, an SEC-Registered Investment Adviser and a full service broker/dealer.

Metals

The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. Gold prices continued to drift lower in domestic markets for the third day in a row amid a strong risk-on rally in equity markets. In physical trading, data from the Hongkong Census and Statistics Department showed that China’s net gold imports in October plunged by around 84% from the six-month high in September. Later on in 2008, he began researching areas of the gold and silver market that, curiously, the majority of the precious metal analyst community have left unexplored.
National Australia Bank’s head of commodity research Lachlan Shaw noted a shift in the gold markets towards a new phase due to the development of COVID-19 vaccines. MARKET NEWS Gold fell as the formal start of Joe Biden’s transition to the White House and optimism over coronavirus vaccines dented bullion’s safe-haven appeal. On Wednesday, the prices of gold dropped close to its lowest level since July 17 as President-elect Joe Biden started the formal transition to the White House.
As rallies in equities, gold and silver began to lose some steam in the fall, bitcoin became a clear beneficiary.
In a related development, the holdings in the largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, fell 1.1% from 1,213.17 tons on Monday to 1,199.74 yesterday. Gold moves based on movements in real interest rates, which is driven by either rate cuts or rising inflation and inflation expectations.

Oil

Oil (OIL) prices continue to bound higher focusing on the prospect of a viable vaccine improving future demand, whilst shrugging off near term concerns of building crude supplies. Production has fallen from June even though Chinese oil companies have increased their spending to reduce the decline rate in their oil fields. An industry body in the US forecasted crude oil inventories to have risen by 3.8 million bbl against a Reuters poll forecast of build of 127,000 bbl.
For example, there is a seasonal trend in the demand for heating oil, pushing prices higher when demand goes up and lower when demand subsides. The NPD also reports that the production figures for oil in October include Norway’s promised production cut of 134 kb/d in the second half of 2020. Brent crude futures, the global oil benchmark, rose 1.27 per cent to USD 48.47 per barrel. less WTI crude oil prices registered a two-day gain of 6.8% as investors cheered a string of positive vaccine developments that brightened the prospects for economic normalization.
World oil production in July increased by 1,130 kb/d to 71,557 kb/d and is the first month to rebound from the June low. Today’s release of US durable goods orders, core PCE inflation, initial jobless claims and EIA crude oil inventories data will be closely eyed too. In terms of oil production there has been no new project commissioned since Western majors left and Russia is only carrying on with its “legacy” project, the Prirazlomnoye field.

United States

DWX offers investors an opportunity to pursue the 100-highest-yielding companies outside the US by tracking the S&P International Dividend Opportunities Index. less After a record setting session in the US, EU stocks are heading broadly higher, although the pace of gains suggest that the risk rally is easing slightly. I lauded Mnuchin’s selection and I think he has done a very strong job under truly unique circumstances, much like Paulson years before him.
He said America was “back, ready to lead the world” in a speech on Tuesday, marking a sharp reversal of President Trump’s “America first” policy. The S&P 500 is also nearing all-time highs and the Nasdaq is recovering some buyer support as capital is beginning to rotate back into tech stocks. Nasdaq Futures are trading up by 35 points (up 0.3%) while Dow Futures are trading down by 2 points (flat). At the time, the entire world was on lockdown and the US was said to be facing an economic collapse reminiscent of the Great Depression.
News that Donald Trump is allowing the presidential transition to Joe Biden to begin, despite not having publicly conceded the election, helped boost sentiment. The structural issues that haunt America’s competitiveness far outweigh the benefits brought forth from Trump’s tax bill and lower taxes. As Treasury secretary, Janet Yellen is almost certain to pursue tighter coordination with the Fed, while attempting to avoid any moves that could trigger Republican protests.

China

That neatly ties in with the three accumulated five-year Chinese plans all the way to 2035, approved last month at the CCP plenum in Beijing. Chinese officials have made it very clear that Beijing has been working as the representative of the Global South inside the G20. Beijing is militarizing disputed territories in the South China Sea, threatening Taiwan and suppressing Hong Kong’s democratic freedoms.

Europe

Vaccine optimism, EU governments starting to ease lockdown restrictions and more US political clarity have driven stocks firmly higher across the start of the week. However, news that Macron is easing lockdown restrictions after claiming that the second wave has passed is keeping the mood buoyant and risk assets in demand. We have entered Christine Lagarde’s “new mediocre.” This article is not an armageddonist assertion that a massive repricing of risk assets is due.
Sterling has been trading around two month highs as optimism for a Brexit deal grows. Brexit Deal Will Leave Carbon Market Question Wide Open Authorities in London will have to decide on how to price pollution starting Jan. 1.
His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. EU watchdog criticizes BlackRock s appointment as ESG adviser. – Christine Lagarde (2014), current President of the ECB, former IMF Chief.

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