Open: New York Session | Forex, Metals, Oil, Agriculture September 23, 2020



The comments followed concerns that recent typhoons could reduce the output corn, which is already in tight supply. Sugar market ruled steady on Wednesday on routine demand, supply and volumes. The Bombay Sugar Merchants Association spot rates (₹/quintal): S-grade 3,280 – 3,352 and M-grade 3,386 – 3,502.


MARKET NEWS Gold prices eased for a third straight session as the dollar climbed to a near two-month high, though uncertainties surrounding global economic recovery limited the bullion’s decline. The US dollar is holding just inside yesterday’s range against the Canadian dollar. A stronger dollar against major currencies overseas also put pressure on the domestic unit, forex dealers said. It was hit by a stronger US dollar (UUP) which is trading at two month highs with no stimulus package forthcoming as yet to cap these gains.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, climbed 0.18 per cent to 94.15. PLTM is under sharp selling pressure, reflecting a broad-based sell-off across the precious metals space in a stronger dollar environment. The dollar was little changed against a basket of six major currencies. The fund has come under heavy pressure of late, reflecting a broad-based consolidation in the precious metals space in a stronger dollar environment.
The U.S. dollar was little changed against a basket of major currencies. The US Dollar is trading at 2 month highs, following surprisingly optimistic comments from Fed policy makers overnight.


(source: Company IR) The story here was the increasing output from the company’s two main operating gold mines at the Pilar gold mine “Pilar” and the Turmalina project “Turmalina”. Even with the recent volatility in prices, gold and silver remain among the best-performing commodities this year to combat the fallout from the coronavirus pandemic. With falling gold prices, is it time to buy gold? Jaguar Mining has presented an exceptional year of growth and firming earnings supported by the bull market in gold.
(OTCPK:JAGGD) with operating gold mining assets in Brazil and a current market cap of $400 million has had a spectacular year. In our view, strong physical demand and tighter global supplies coupled with the attraction of gold amid continued macro uncertainties support a positive outlook for the metal. Going forward, the pricing environment in gold is the main risk to watch with extended downside or weaker sentiment towards precious metals likely pressuring the stock.
Meanwhile, the price of gold (GLD) tumbled below $1,900 for the first time since July, trading down at $1,898 this morning. In addition to the election, Citi is very positive on gold amid low interest rates, saying it’s in the middle of a bull cycle.Election day is November 3. It doesn’t much matter even if gold and silver first decline below $1,800 and $22 respectively.


At current strip of around $42 WTI oil and $2.90 Henry Hub natural gas, Gulfport would end up with around $866 million in revenues after hedges. According to a US oil and gas agency, commercial crude stocks in the country rose by 691,000 bbl in the week ending the 18th of September. Malaysian palm oil futures fell for a third straight session, tracking weaker Dalian rival oils while rising output and concerns over fresh COVID-19 lockdowns in Europe also pressured prices.
In March this year, we have seen how, for instance, energy players’ yields soared as their market values cratered being dragged down by the oil price war. Oil demand recovery in Europe is expected to continue, but at a slower pace due to renewed localised lockdowns being imposed in some parts of the continent. Still, gasoline inventories plunged by 7.74 million bbl, compared to expectations of a 648,000 bbl draw. The planet cannot afford any more oil booms,” said [OCI]. If there is a big rally in Big Oil, you will miss that if you own SPYX, Balchunas said.
Elsewhere, supply was under threat in Iraq, where protests in the South led the Dhi Qar Oil Company to shut down its offices.
For specifics in this area, I have just written about the debt/bankruptcy issue in the oil industry.

United States

The Trump administration’s approach has created significant volatility in markets, and there is fear that a second term would mean even more erratic and aggressive moves against China. Each week, well over a million readers turn to John Mauldin to better understand Wall Street, global markets, and the drivers of the world economy. In the case of technology companies, enthusiasm fed itself: dealers buying stocks in advance, in the expectation that prices would continue to rise, eventually reinforcing and corroborating their rise.
The Fed helped establish the confidence that it would provide a buyer of last resort for assets, which kept the market from entering a free fall. That said, the actions of the Fed in providing credit zoomed through the markets, and pushed stock prices up. President Trump also confirmed the U.S. would not impose a lockdown to curb the spread of the coronavirus after Boris Johnson walked back some eased restrictions in the U.K.
After plunging in March and April, the US MEI rebounded sharply but has been treading water in recent weeks and remains well below the pre-pandemic level as of mid-September. Both the economic recovery, halting as it is, and the Fed’s pledge on interest rates, benefit O and WPC roughly equally, and both are well below pre-COVID-19 prices. less A reasonable person could ask why, if we’ve done such a superb job of managing the crisis in the US, we’ve done so poorly vis a vis Canada.
less This article first appeared in The Washington Times Whoever wins in November, American trade policy needs a reset but neither the Trump nor Biden camps offer encouraging visions.


TikTok trick talkChinese state-run media are denouncing the TikTok deal as “an American trap” and a “dirty and underhanded trick” as sentiment in Beijing swings against the proposal. President Xi Jinping s surprise announcement has left many questions.


The weaker-than-expected decline in EU sales in August could indicate that the recovery in prior months was mainly driven by subsidies and pent-up demand. Interestingly, according to a recent ECB study, the increase in the savings ratio in the entire eurozone is mainly driven by so-called forced, ie involuntary, savings. They will invite legislative measures to reduce strategic dependencies in sensitive industrial ecosystems such as health.Restrictions on public subsidies will be eased by updating the EU s state-aid rules.
Initial support programs are winding down and the U.K., with Europe s highest death toll, faces unquestionably difficult months to come, Prime Minister Boris Johnson warned. The ECB’s policy has supported sovereign bonds, leaving the yields of insolvent states at negligible levels, thus Fundamentals do matter. where the identity between companies and minority shareholders is greater, but of course In fact, you can fight the ECB whenever you want and it works.
David J. Merkel, CFA — 2010-present, I run my own equity asset management shop, called Aleph Investments.
By now, I have built up excellent skills and experience in analyzing macroeconomic and political developments in Europe, the Eurozone and Germany, including ECB watching. David Merkel is an investment professional, and like every investment professional, he makes mistakes. The latest statistics from the ACEA show that EU sales contracted by 18.9% YoY in August, a deeper contraction than the 5.7% YoY decline in July.