Open: New York Session | Forex, Metals, Oil, Agriculture September 08, 2020

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


Cotton products made in the Xingjiang region could be subject to a ban in the latest threat. Cotton products made in the Xinjiang region could be subject to a ban in the latest threat. As of Sept. 1, investors held net longs across CBOT corn, wheat, soybeans and products, and Kansas City wheat, the first such instance since July 2015. The U.S. is targeting cotton in its latest move and may ban products that use supply from the top growing region of Xinjiang.
With little change in the southern US, September’s national corn yield could decline to 177.7 bu, reducing 2020’s crop by 403 million bu. The volume is down due to a decline in corn sales, to 604,000 tonnes from around 1.9 million tonnes by the same date last season. They maintain bearish views in Minneapolis wheat, though they are the most bullish toward combined CBOT grains and oilseeds for the date since 2012. MARKET NEWS Chicago soybean futures gained for an 11th straight session climbing to their highest since June 2018 on strong demand from top importer China.
The coffee chain said it was introducing products in markets such as Hong Kong, Singapore, New Zealand, Taiwan and Thailand that suit local tastes and preferences. The measures could have a broad impact on the textile industry, which relies heavily on Chinese cotton.


The dollar’s trend continues, with both the Scandis lower for the sixth consecutive session and the euro and sterling off for the fifth day. On Friday, the euro and the Swiss Franc traded lower against the U.S. dollar but the rest of the major currencies higher or flat on the day. Kathy Lien Follow Job growth in the U.S. slowed in the month of August, but instead of falling, the U.S. dollar traded higher against the euro and yen. Job growth in the U.S. slowed in the month of August, but instead of falling, the U.S. dollar traded higher against the euro and yen.
If real rates remain low – if real growth expectations remain muted – then gold strength and dollar weakness are likely to go hand in hand. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. Support was also found from the recent weakness in the US dollar, rendering dollar-denominated WTI and Brent contracts relatively cheaper for holders of other currencies.
Gold prices are correlated with the dollar but the better correlation is with real interest rates. Commodities have also outperformed during the weak dollar period but like European stocks, lagged in August. The Canadian dollar sold off initially but ended the day higher versus the greenback.


Gold (GLD) was pushed below last week’s lows (~$1916), and oil prices are extending their drop. Gold was pushed below last week’s lows (~$1916), and oil prices are extending their drop. Last year, Microsoft’s board announced a nickel per share per quarter raise from $0.46, while also detailing a new large buyback program. Gold had dipped back-to-back the past two weeks and had only had one positive week in the last six. The surge in demand from the world s top user has been one of the main drivers in copper s recent rebound, with prices trading near a two-year high.
Gold hit a new high in the first week of August but has since pulled back to the trend. Since hitting a record high of $2,089.20 exactly a month ago, December gold has lost almost $160, or nearly 8%.That’s not all. Gold is also lacking strong downside momentum, even if the rallies are shallow in scope. S&P 500 futures pointed to drop at the open, with tech shares again driving the losses, the 10-year Treasury yield was at 0.689% and gold fell.
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.


Futures tied to West Texas Intermediate, the benchmark grade of U.S. crude oil, fell 3.4% to $38.43 a barrel in New York, their lowest price since late June. Record oil imports by China, the return of automobiles to U.S. roads and steep production cuts fueled a rebound after crude prices crashed this spring. At current strip prices, Whiting’s stock may have a modest amount of upside as its valuation is estimated at $24 to $29 per share based on $44 WTI oil. Refinitiv Oil Research was tracking 311,000 tons that could potentially discharge by the end of this week, up by around 6% from the previous week.
Given this scenario, it appears that a conservative middle-of-the-road estimate for their future distribution yield on current cost would range between 4% and 6.67% depending on oil prices. Now moving onto their future income prospects and the first important variable is their ability to generate free cash flow at various different oil prices. Oil prices have more than doubled since the March dip, but they’re still down around 35% this year.
BEFORE THE BELL Canada s main stock index futures were lower, pressured by lower oil prices. Whiting previously projected delivering $250 million EBITDAX in 2021 at mid-March strip prices, but that involved $36.59 NYMEX oil in 2021. When completing the analysis three different scenarios were included for each different oil price scenario to provide a full range of results, as the graph included below displays.

United States

Futures tracking the Nasdaq 100 index fell after a report said SoftBank made significant option purchases during a Wall Street rally since a coronavirus-driven crash in March. Tech-heavy Nasdaq Composite Index futures fell 1.3% after a bout of volatility last week led to big drops in the index. Breaking upPresident Donald Trump said he is going to “end” U.S. reliance on China and threatened to punish any American company that creates jobs overseas.
That policy would also lead to substantially lower real interest rates, compared to the policy the Fed actually implemented. Trump hinted the U.S. could approve a coronavirus vaccine in October, and Biden demanded transparency from the government as it studies the shots. Trump may pump up to $100 million of his own money into his re-election campaign, people familiar said. Fighting an election battle but still finding time to target China once more, Trump’s plan includes punitive measures against companies that choose to create jobs overseas.
Nasdaq futures are off more than 2%, as investors remain nervous about the drop in big tech shares last week. The US market was closed yesterday due to the Labor Day holiday, which also marks the end of the summer driving season in the US. Therefore, QID may continue to trend higher while the Nasdaq 100 and tech stocks in general cool off at a bit lower levels.


Bill Birtles, ABC’s Beijing correspondent, and Mike Smith, AFR’s Shanghai correspondent, were rushed out after police demanded interviews with them, ABC reported. The potential ban which could be announced as soon as Tuesday comes amid reports of use of forced labour on minority Muslims in Xinjiang, the report said. As much as they dislike it, other countries may yet need Beijing to help keep them afloat. Countries are talking more about the need for economic decoupling from Beijing.
Xi Jinping takes victory lap in fight against virus. The Foreign Correspondents’ Club of China called on Beijing to reverse the move.


Brexit brinkmanship | I will not back down, Prime Minister Boris Johnson vowed in a new threat to walk away from Brexit talks without a trade deal. This deal was deemed to be crucial for the EU to ensure a trade deal between both countries. Not convinced | Boris Johnson s threat to cut U.K. ties with the EU without a trade deal is leaving most economists and traders unruffled for now. The Merkel-Macron plan would offer 500 billion euros, or roughly 569 billion dollars, in grants as an economic lifeline to pandemic-stricken members of the union.
With only around 54 billion euros in outstanding debt, the EU has yet to leap big time into the bond fray, but that is about to change.
However, given the EU’s warning that the UK mustn’t hamper with the Brexit deal, these talks appear to be unraveling before they have even started. Financing the fund with joint EU bonds marks a big step towards mutualizing member states’ debt. (FXB) The Pound is adding to yesterday’s Brexit inspired losses as the 8th round of Brexit trade talks are due to kick off in London. Boris Johnson said that the trade agreement with the EU should be concluded before October 15, otherwise it will never be met.
European shares slipped on fears that the UK was in danger of leaving the European Union without a trade agreement.