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



We also look into the global grain market supply situation as wheat hits five year highs, contrast US and European small cap performance and much more. Raw sugar futures closed up on Thursday after hitting a seven-month high, fueled by fund buying on news of adverse weather hurting some major producing countries. (h/t Just The News, Redstate’s ‘Shipwreckedcrew’ and Ben Tallmadge) Barring the spot market, sugar prices at the Naka and mill level continued on a steady trend on Friday.
The combined deals made for USDA’s largest daily soybean export sales announcement since Sept. 8, agency data showed. Say Bye to Your Local Cafe in America s Shakeup Coffee chains expand grip as independent cafes struggle with pandemic. Wheat hits multi-year highs. Now, sit down, grad a cup of coffee, and read about the dividend increases expected in October 2020.


The yuan was last up 1 per cent at 6.7218 per dollar in onshore trade and it rallied half a per cent to 6.7083 per dollar offshore. The Canadian dollar is set for its best weekly rise in more than two months, adding 0.9 per cent to C$1.3185 per dollar. The dollar eased 0.1 per cent against a basket of currencies and it is down 0.4 per cent for the week. The New Zealand dollar likewise recouped Thursday losses made after another dovish signal from the Reserve Bank of New Zealand and was last up 0.3 per cent at $0.6602.
Gold jumped, as the dollar weakened and renewed negotiations for U.S. stimulus prompted investors to buy bullion as a hedge against inflation. Gold jumped, as the U.S. dollar weakened and renewed negotiations for U.S. stimulus prompted investors to buy bullion as a hedge against inflation. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.15 per cent to 93.46. As reflected in rising equities and rising commodity prices, robust risk appetites, especially oil’s 10%+ gains this week, have underpinned the Canadian dollar.
The yuan’s leap, when China’s markets reopened after the mid-autumn break, was partly a catch-up since the offshore yuan has gained against a softening dollar during the week. The improving mood in the market is boosting demand for riskier assets such as stocks, whilst dragging on demand for the US Dollar.


ETFs, which store gold for investors, added 68.1 tonnes of gold to their hoard in September, taking their purchases so far in 2020 to 1,003 tonnes, the WGC said. Aside from the technology industry where copper is used in the construction of servers, semiconductors, and switches, it is also a great barometer for the housing industry. Lumber and copper are a great gauge of the health and direction of the housing industry, and both have surged in 2020. Whether it be new home sales or existing sales, both lumber and copper are a great gauge of the health, and direction of the industry.
Gold has rallied more than 1% today to about $1916, putting it within striking distance of the week’s high set on October 6 near $1921. Equity investors have bought the recent dips, USD 5y5y breakeven inflation is around a 16-month high, copper near two-year highs… Meanwhile long-dated nominal rates have barely followed suit. The other commodity most directly affected by the growing housing demand is the copper market.
To know more about gold, just visit our Youtube Playlist on gold investing. 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. Gold may also end the week on a high note as chipper mood keeps the Greenback on the defensive.


HVO can be produced from any vegetable oil, animal fat or used cooking oil but crucially it can be fully substituted for petroleum products such as kerosene or diesel. My focus is in the financial markets, cyber-security, hacking, agriculture, natural gas, crude oil, geopolitics and alternative investments. less Improving risk appetite across global financial markets pulled sentiment-linked crude oil prices upward alongside the bellwether S&P 500 stock index.
Used cooking oil has a greenhouse gas saving level of 87% compared to around 60% for other related products. Brent crude futures, the global oil benchmark, fell 0.16 per cent to $43.27 per barrel.
Oil (CL1:COM) is poised for its biggest weekly gain since May, even though prices have tracked back just a bit. Energy stocks soared, with the S&P’s energy sector gaining 3.8% on aggregate, as Brent Crude oil December contracts passed $43 a barrel. PIMCO Hurricane Oil is set for its biggest weekly gain since June as Hurricane Delta shuts 92% of crude output in the Gulf of Mexico. Admittedly BP could possibly provide a more desirable investment for those investors seeking short-term trading opportunities to capitalize on any recovery in oil prices.
Oil companies, workers and a state-appointed mediator are scheduled to meet today to help end the strike.

United States

After a stumble earlier in the week on President Trump’s announcement that there would be no stimulus until after the election, things have turned back up and then some. Investors have welcomed renewed efforts by Congressional leaders and Trump administration officials to bridge differences this week over a fresh round of economic stimulus. This week, Jerome Powell, the Fed Chair, called on the Federal Government during congressional testimony, to step up and take more responsibility in providing stimulus to the lagging economy.
The minutes from September s Fed meeting, released this week, showed that the relatively sanguine tone and economic projections were based on some assumptions of fiscal help. President Donald Trump backtracked on canceling talks with Democrats after markets fell earlier in the week, and is now pushing them higher with the willingness to compromise. Investors may be taking heart from the president s more-recent assurances of piecemeal stimulus, and the prospect of restarted talks between Treasury Secretary Steven Mnuchin and Nancy Pelosi.
Advanced Micro Devices (NASDAQ:AMD) is in advanced talks to buy rival chip maker Xilinx (NASDAQ:XLNX) in a deal that could be valued at more than $30B, WSJ reports. A deal for Xilinx would raise AMD to a more even competitive footing with Intel (NASDAQ:INTC) and give it a bigger position in the growing telecom and defense markets. Optimism appeared to be linked to renewed hopes for a second round of fiscal stimulus in the US.
Also see AOC “New Green Deal” Stunningly Absurd: Far More Ridiculous Than Expected Former Fed Chair Ben Bernanke chimes in today with more of his typical silliness.


Shanghai led the Asia Pacific bourses higher with a 1.7% gain, and the onshore yuan rose 1.1%, a bit more than expected after a favorable fix by the PBOC. There appears to be a regime change under which, as we have suggested, Beijing sees it in its interest to accept an appreciating currency. The firm doesn’t think the current tensions between Washington and Beijing will prevent U.S. operators from staying in Macau.


Not all wholesale counterparties have access to the ECB deposit facility, so they have to deposit with MMSR banks at rates that are lower than the ECB deposit rate. EU-UK trade negotiations are facing a moment of truth and US presidential elections are just around the corner. The EU has still not kicked the habits of the Juncker investment plan: a castle in the air combining hype and leveraged aspirations. The ECB has been quite relaxed in terms of its bond purchases recently, and PEPP volumes have remained low.
In addition to the U.S. food program and a dairy bailout, the European Union and Australia also earmarked funds for the industry.
In a separate matter, Qualcomm is currently being investigated by an EU antitrust probe for its 5G chipset business. According to research from Gallup, the as the European Union debuts a new migration pact. The EU is clearly overselling the green deal. He writes that the EU has picked all the low-hanging fruit, but has De-carbonisation will be very expensive.