Open: New York Session | Forex, Metals, Oil, Agriculture October 19, 2020

A member of the National Guard plays a trumpet during a flag rai


Cocoa futures recovered on Friday after touching the lowest prices in several weeks as the market digested data showing plunging demand for the chocolate ingredient during the coronavirus pandemic. It also covers the commodities market daily focusing on in-depth technical developments in GOLD, CRUDE OIL, SILVER, CORN & WHEAT. It said farmers had collected 10.0 million tonnes of corn from 2.2 million hectares, or 40% of fields planted with this crop. Ongoing EU wheat sowings to rebound despite adverse weather.
However, investors bullish corn run is still alive. The Bombay Sugar Merchants Association spot rates (₹/quintal): S-grade 3,226 –3,292 and M-grade 3,276 – 3,440.


Dollar indexThe dollar index ended last week on a positive note after registering loss in the preceding two weeks. BL Research BureauLast week, the rupee (INR) ended 21 paise lower against the dollar (USD), it ended at 73.34 versus 73.13 – its previous week’s close. Gold clamber back above the $1,900/oz mark and silver stormed 1.7% higher, as the haven-associated US Dollar slid lower. The US Dollar index was little moved at 93.70, offering few clues to commodity trading in terms of the currency impact.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.09 per cent to 93.76. Though the dollar value of capital recycling has been increasing, returns have shown little sign of deteriorating – a key positive. The local unit opened at 73.38 against the US dollar at the interbank forex market, then lost ground and touched 73.42, down 7 paise over its previous close. The yuan has appreciated by almost 4% against the dollar this year, making it among the strongest currencies in the world.
The stronger dollar pulled down bullion prices, but its impact was offset by U.S. House Speaker Nancy Pelosi’s statement on the coronavirus relief package. A weaker dollar pushed gold prices higher.


The company reported fiscal Q1 2020 gold production of 170,000 ounces, down 11% year over year, with all-in sustaining costs hitting a new multi-year high of A$1,198/oz [$857/oz]. As per our short term oriented gold forecast we believe that the gold price will turn bullish or bearish during election week. Without this divestment, the company would have had flat production year over year, and the slight escalation is also due to lower gold sales. Meanwhile, Evolution is one of the only gold producers with margins above 50% at a $1,750/oz gold (GLD) price.
The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. The gold market is hot, the gold market sells off. To know more about gold, visit our YouTube Playlist on gold investing. (Source: Company Presentation) Evolution Mining released its preliminary fiscal Q1 2020 results last week, and the headlines were quite disappointing for investors not familiar with the intermediate gold producer.
This has left a dark cloud over the company following a strong Q2 report with gold production of 131,000 ounces. Based on Evolution’s current production, more than 70% of its gold production comes from the #1 mining jurisdiction in the world: Australia.


The company posted its fourth-straight quarterly loss, as the world’s second-largest oilfield services provider struggles with a plunge in demand and lower oil prices. Oil prices fell as concerns over rising coronavirus cases globally dampened prospects for a quick demand recovery. US equity futures edge higher amid favorable sentiment, which may also buoy crude oil prices. The country processed 57.35 million tonnes of crude oil last month, or 13.96 million barrels per day (bpd), according to data from the National Bureau of Statistics (NBS).
Oil prices and consumer demand also plummeted.
Oilfield Equipment is highly exposed to the subsea sector, and E&P in the sector may not be economical at current oil prices. Global oil prices traded at $42.56 a barrel on Friday, down 36% this year. A widened regional conflict in the Caucasus could close the main oil and gas arteries bringing Azerbaijani and Central Asian energy resources to Europe. Offshore naval confrontations are unlikely to be confined to the specific parties involved but threaten maritime trade flows (including the Black Sea and Caspian oil and gas transports).
At the same time, a Turkish-Greek confrontation would put existing Southern European oil and gas projects at risk.

United States

Steven Mnuchin has been saying for years as Treasury Secretary that fixing Fannie and Freddie would be easy and they would get it done relatively fast. The fact that Trump is also pushing for a deal over $2 trillion, certainly closer to the Democrats $2.2 trillion package demand is also helpful. Twitter Deletes Trump Adviser Post About Masks Medical adviser Atlas said wearing masks doesn t help slow Covid’s spread. President Donald Trump said that he wanted “a bigger number” and that Senate Republicans would agree to it “in the end.”
The Fed has resisted crossing the zero interest rate line, but any slowdown in our economy, or increase in our economic pandemic, could change this in a heartbeat. With inflation rates down and the Fed’s pledge to keep interest rates low for the next few years, it seems that the banks could struggle. This includes the likes of heavyweights such as: Of course, stock markets will also be fully focused on election polls which have Joe Biden leading Donald Trump.
The outcome on Nov. 3 will also have a major impact on what comes next; a big question is what Trump might do after the election. While Joe Biden remains way ahead in the polls, a surge over 30K on the Dow would really help Trump get back in the race. A Trump re-election in November would bring “more of the same” trends, he said.


America saw its actions as “catching spies in accordance with the law,” while similar actions by Beijing were dismissed as “hostage diplomacy,” Hu said. Lemahieu also cited wolf warrior diplomacy — more aggressive rhetoric and actions from Beijing’s envoys — contributing to that drop. Equal measures | China passed a new law to restrict sensitive exports to protect national security, helping Beijing gain reciprocity against U.S. as tech tensions mount. The PBOC moved to make it easier to speculate against the Chinese yuan, seen as a signal that Chinese policy makers are against further yuan strength.
The previous report showed retail sales rose only 0.5%, and Beijing was criticized by some observers for emphasizing supply-side issues over demand. Precisely how the PBOC is able to achieve this is a bit of a mystery, owing in part to the lack of transparency of Chinese reporting. His efforts were set to be crowned with a state visit by Chinese President Xi Jinping that was planned for the spring.


Meanwhile, British officials are reportedly preparing to water down Johnson’s controversial Internal Market Bill after the EU took legal action over the proposed legislation. EU diplomats and officials have cast Johnson’s move as little more than rhetoric, portraying it as a frantic bid to secure concessions before a last-minute deal is done. British Prime Minister Boris Johnson may be forced to water down controversial international law-breaking legislation by the House of Lords — the U.K.’s unelected upper chamber.
Read: U.K. Could Rewrite Lawbreaking Brexit Bill as Part of EU Deal Published on October 18, 2020, 5:30 PM EDT Have a confidential tip for our reporters?
U.K. chief Brexit negotiator David Frost is due to hold discussions with the EU’s Michel Barnier later as they seek a way to quickly restart stalled talks. Five Things Follow Us Get the newsletter New stimulus deadline, another coronavirus milestone and a fresh twist in Brexit talks. Buxl spread drifting higher, bp We could of course blame the ECB/APP/PEPP and argue that the negative net issuance is squeezing German yields lower and sending swap spreads wider.
Michel Barnier, the EU chief negotiator, is due to come to London next week to continue the negotiations. Investors have not let the surge of the virus or uncertainty over the UK-EU talks or US fiscal stimulus to stand in their way. However, as some market participants think, the ECB could hammer the E/E down by new measures.