Open: New York Session | Forex, Metals, Oil, Agriculture September 24, 2020



The volume is down largely because of a decline in corn sales, which stood at 619,000 tonnes, versus about 1.93 million tonnes a year earlier. Arabica coffee futures on ICE closed down on Wednesday for the eighth consecutive session, touching a two-month low even as the market was seen as finally finding some support. But, listen, I had my cup of coffee with the CIA back in the Reagan days (yes, that far back!). 3 corn and soybean exporter. But there s one unintended beneficiary: U.S. soybean crushers.


The Australian dollar vs US dollar exchange rate has fallen more than 5% in September already, a huge amount in the five-trillion dollar a day currency market. Dollar indexThe dollar index decisively breached the crucial resistance of 94 as it closed at 94.39 yesterday. The dollar was oversold and the short dollar trade was crowded. From mid-February to the peak in March the broad dollar index rose 8.5% and the EM index rose 12%. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.04 per cent to 94.42.
Copper prices fell as the U.S. dollar strengthened and as rising global cases of the novel coronavirus dashed hopes of a quick economic recovery. The US dollar index which was around 91-91.8 in the beginning of the month, is now trading at around 94.37. The trend has been relentlessly higher since 2014 no matter what dollar index you prefer. The broad dollar index is today at about the same level as the beginning of 2016.
Also, the dollar index has turned bullish showing a good demand for the greenback.


The average 100,000-ounce per year gold project requires an upfront capex of less than $160 million to build, and Spanish Mountain comes in at $273 million. So you don’t sell your house, but you do sell some gold, silver, mining stocks or if you have them, precious metals futures contracts. Money managers are trimming their speculative positions, but fundamentals of the metal are still intact Gold prices which left investors gasping for breath are now hitting a wall.
This is based on initial capex of $273 million to build the project and an After-Tax NPV (5%) of $447 million at $1,450/oz gold. If the rules of this game still apply, stocks, gold, and silver will keep falling until the Fed and/or Congress provide another big cash infusion. In March of this year, for instance, stocks tanked, but so, counterintuitively, did supposedly “non-correlated” assets like gold and silver. Domestic gold and silver prices continued their fall today, extending losses to the fourth day.
Gold prices are trading down by 0.3% at Rs 49,348 per 10 grams. Gold prices are trading down by 0.3% at Rs 49,340 per 10 grams. Gold and especially silver get slammed in the general rush into cash.


Onshore fuel oil stocks rose 2.323 million barrels, or about 366,000 tonnes, to 23.633 million barrels, or 3.722 million tonnes, according to the Enterprise Singapore data. Total said crude oil refining at Grandpuits would be discontinued in the first quarter of 2021 and the storage of petroleum products would end in late 2023. Despite the drawdowns, fuel demand in the US remains weak with the four-week average of gasoline demand at 8.5 million bpd last week, down 9% from a year earlier.
At least some of these demonstrations will depend upon the future prices of oil and natural gas. However, that does not mean this company will necessarily strike oil or natural gas early on. (Canadian Dollars Unless Otherwise Stated) Source: Paramount Resources September 2020, Investor Presentation As shown above, this company operates more like a mutual fund of various oil and gas projects. The market did draw some support yesterday from weekly US inventories data from the Energy Information Administration (EIA), which showed crude stockpiles falling by 1.6 million barrels.
Malaysian palm oil futures hit a two-week low, following sharp declines in rival oils and global equities, while concerns over rising output also dashed sentiment.
Contango Oil & Gas (MCF) management has been watching the bankruptcies and distressed sellers in the market place with some interest. The reason is that Juneau Oil & Gas generally suggested prospects whose returns exceeded the risk of success.

United States

Market volatility is not going away as Wall Street experienced more whiplash on Wednesday, with stocks closing broadly lower and futures pointing lower overnight. However, I don’t see this as a near term risk, as the Fed Chairman has committed to keeping the interest rates low until at least 2023. Though economic indicators including unemployment rates and home sales have been positive, the US economy will recover only slowly. US stock futures are trading lower, indicating a negative opening for Wall Street indices.
President Trump signaled he may veto any tightening of U.S. rules on the emergency clearance of a vaccine, saying it “sounds like a political move.” But in order to keep interest rates low, the Fed has been buying up trillions of dollars in assets—including government debt. Nasdaq Futures are trading down by 47 points (down 0.5%), while Dow Futures are trading down by 44 points (down 0.2%). Nasdaq Futures are trading down by 69 points (down 0.6%), while Dow Futures are trading down by 37 points (down 0.1%).
The Fed promises low interest rates for years to come, but stocks read this as “no further cuts” and proceed to roll over. The markets will be particularly sensitive to an unexpected increase in weekly jobless claims, especially given the lack of fresh measures by either the Fed or Congress.


China still expanding Xinjiang re-education camps, report says.


LEVERAGED PRODUCTSINVESTMENT PRODUCTSPRICING ACCOUNT TYPESLOYALTY Trade inspiration ABOUTCORPORATELEGAL GET HELPPOPULAR TOPICS Macro Head of Macro Analysis Two days ago, the ECB announced it will accept sustainability-linked bonds as collateral. Recall that the ECB’s balance sheet has been slowing increasingly as it continues to buy bonds under its APP and PEPP operations. But it is bright clear that the ECB, under Lagarde’s leadership, will do its part and commit to help fighting climate change.
We discuss the implications of the ECB decision and why investors should integrate ESG products in their portfolio in Q&A format. According to ECB member Yves Mersch, the recovery path might be a bit closer to a mild scenario. This will lead to another jump in the ECB’s balance sheet. European banks took 174.5 bln euros from the ECB’s latest Targeted Long-Term Refinancing Operation.