Open: New York Session | Forex, Metals, Oil, Agriculture September 11, 2020



Farmers in Russia reduced their sugar beet sowing area by 18% this year as profitability was pressured by weak domestic sugar prices. If left unfettered, the worms could cut corn production by 17.7 million tons a year and threaten the food security of 300 million people. MARKET NEWS Chicago soybean futures rose, with the market on track for a fifth consecutive weekly gain on strong demand from China, the world’s largest importer of the oilseed. Photographer: EDUARDO SOTERAS/AFP At stake is the success of ambitious economic plans that include the full or partial participation of foreign investors in industries ranging from sugar to telecommunications.
Large wheat-growing areas in the South American grains powerhouse have had unusually dry conditions, prompting a reduction in sowing area and yield expectations. Candy crunch | European Union farmers are increasingly turning away from sugar, potentially leaving the region more reliant on imports.
The exchange estimates that 6.5 million hectares were finally planted with wheat this season, with harvesting expected in December-January. Meanwhile, Reuters confirms China has made several massive buys of soybeans and has also bought record levels of U.S.-produced beef. Granular concerns | Ukraine joined Russia in starting wheat sales to Saudi Arabia, giving EU exporters another rival in one of their top markets. Louis Dreyfus veteran Tancredi leaves commodity trader Anthony Tancredi is leaving Louis Dreyfus Company (LDC) after three decades at the global agricultural commodity merchant, notably at its cotton business.


Dollar (UUP) The dollar fell hard initially following the ECB announcement, but recovered dramatically, rising back to 93.50. The dollar’s latest attempt at rallying (below) is also why gold prices have been stuck in a holding pattern since last month, though gold remains near a record high. It was flat against the Japanese Yen and Australian dollar, sold off versus the euro and Swiss Franc and strengthened against sterling, the New Zealand and Canadian dollars.
Ms. Lagarde played down the recent strength in the euro which has been 10% up on the dollar since March. In currency markets, the euro rose as traders noted European Central Bank policymakers’ calm approach to the euro’s recent appreciation. If major world powers dumped their Treasury holdings and stopped accepting U.S. currency in international trade, the U.S. dollar’s privileged status and value would collapse. With that in mind, we expect the euro to outperform sterling, weaken against the Japanese Yen and struggle for direction against the U.S. dollar.
The British currency plunged 2% to 1.2729 against the dollar, and 1.64%, to 0.9225 against the euro. The euro has appreciated 9% against the US dollar in the last four months. less The euro rose 0.10% to 1.1815 against the US dollar on Thursday, September 10th.


Gold 7 days Gold 14 days Gold 1 month Gold 3 months Gold 6 months Gold 1 year Seeking AlphaFinancial Advisor | Today’s Market | Market OutlookSep. The average annual copper production should be around 950 million lb copper at an average mine site cash cost of $0.81/lb and an average total cash cost of $1.4/lb. The average annual production should be around 523 million lb copper at an average mine site cash cost of $0.64/lb and an average total cash cost of $1.44/lb.
The World Gold Council says the Federal Reserve’s higher inflation targeting policy could bode well for gold prices in the future. (Source: NYSE) To summarize, an increasing number of signs point to increasing inflation, which, in turn, should boost gold prices (based on gold’s improving currency component). Inflows of gold into ETFs are significant in their effect on the world gold market, pushing overall demand higher. As long as the gold price remains above this widely watched indicator on a weekly closing basis, gold’s intermediate-term (3-6 month) trend is assumed to be bullish.
ETFs added a net 39 tons of gold last month, according to the latest data from the World Gold Council.
While gold prices tend to co-move more strongly with the long end of the US real yield curve, silver prices respond more to changes in short-term US real rates. China, the world’s top metals consumer, brought in 1.49 million tonnes of copper scrap in 2019, Wang Jiwei, deputy president of CMRA, said at the China International Copper Forum.


The data showed that US crude oil imports increased by 0.5 million barrels per day last week to an average 5.4 million barrels per day. MARKETS TODAY OIL: Oil prices fell for a second day and were on track for a second weekly fall after U.S. stock markets tumbled and U.S. stockpiles rose unexpectedly. The EIA reported that in the week ending September 4th, US crude oil inventories rose by 2 million barrels. The EIA reported a crude build of 2.03 million bbl in the week ended the 4th of September, compared to expectations of a 1.34 million bbl draw.
Over the last four weeks, crude oil imports averaged around 5.5 million barrels per day. This time around, we won’t have to deal with the excessively bloated oil storage as we’ve seen a ~200 million bbl draw from oil-on-water and onshore storage already. In news from the commodities space, crude oil prices extended their decline, under pressure from a surprise rise in US stockpiles and ongoing weak demand from the coronavirus pandemic.
In a further bearish sign, traders were starting to book tankers again to store crude oil and diesel, amid a stalled economic recovery as the Covid-19 pandemic continues unabated. In a further bearish sign, traders were starting to book tankers again to store crude oil and diesel, amid a stalled economic recovery as the COVID-19 pandemic continues. Distillate inventory levels, including diesel and heating oil, were lower by 1.7 million barrels over the week.

United States

With the Fed’s new inflation strategy, many people were wondering if the BoC would make adjustments as well. With the Fed’s new “average inflation targeting” policy framework, the monthly jobs report will be losing some of its cachet. That would add some muscle to the Fed s shift to treating the 2% inflation target as an average over time, rather than a ceiling. Nasdaq Futures are trading up by 99 points (up 0.9%), while Dow Jones Industrial Average Futures are trading up by 175 points (up 0.6%).
Nasdaq Futures are trading up by 153 points (up 1.4%), while Dow Jones Industrial Average Futures are trading up by 190 points (up 0.7%). less Risk markets were displeased with the news the US Senate failed to advance the latest pandemic relief package, with stocks back under pressure as a consequence. This would undoubtedly lead to a long term totalitarian structure that, once again, benefits the elites that inhabit every aspect of government including Trump’s White House.
Inflation rates may be set to accelerate as the Fed aims for an “average” of 2%. Inflation will be the most important data to watch later in the recovery to assess the path of Fed rates, according to Citi. A yo-yo week for stock markets might end on a brighter note: Futures for the S&P 500 and Nasdaq are both up about 1% ahead of the open.


There are tensions with Beijing and Seoul, especially over Japan s wartime past.


U.S. House Speaker Nancy Pelosi warned that the U.S. would not support a U.S.-UK trade deal if Britain violates the EU withdrawal agreement. The move could sink negotiations between the two sides to sign a trade deal before the end of the Brexit transition period on Dec. 31. FrayingIt would be fair to say that talks between the European Union and the U.K. on a post-Brexit trade deal did not go well. Post-Brexit trade deal talks are set to resume today after the UK and EU failed to agree on terms.
Basically, the U.K. looks less and less likely to reach a trade deal with the European Union by the prime minister s Oct. 15 deadline.
The deal also allowed BoJo to show voters that Brexit is already giving them new options to strike favorable free trade deals. The EU gave Boris Johnson’s government three weeks to drop its Internal Market legislation which would allow ministers to override parts of the withdrawal agreement. The EU has ordered Britain to scrap a plan to break their divorce treaty, but Johnson’s government has refused, potentially sinking four years of Brexit talks.
While Britain hailed the deal as a “historic moment”, analysts remained mostly focused on the outlook for talks with Brussels, and most importantly, the outlook for BoJo’s Inter-market bill. Brexit talks are on the verge of collapse, a messy end to four years of Brexit talks is now looking extremely likely.