Open: New York Session | Forex, Metals, Oil, Agriculture September 30, 2020



The trade expects both Sept. 1 corn and soybean inventories, effectively ending stocks for the 2019-20 marketing year, to land within 0.2% of what USDA projected earlier this month. In the main cities, bars and coffee shops must close at 10pm and gyms and other sport facilities are asked to close entirely for at least two weeks. Raw sugar futures on ICE rallied on Tuesday after sharp losses in the previous session as the Brazilian currency recovered partially and the first-month contract nears expiration.
In the last 20 years, that has happened once for corn and never for soybeans.


Gold and silver prices paused gains after a three-day rally, as the US Dollar climbed after the first US presidential election debate. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. Gold prices are now trading below $1,900/oz as the US dollar regains some losses, but there’re plenty of positive points to keep a bullish view on the stock. The dollar then became a fiat currency, like all the others, and the government could print as many dollars as it wanted when it wanted.
In the near term, the outlook of gold largely depends on the direction of the US Dollar, due to their negative correlation and a lack of geopolitical events lately. Gold slipped as the dollar benefited from caution that crept into financial markets. Gold slipped as the U.S. dollar benefited from caution that crept into financial markets. Amid all this, the U.S. Dollar Index has risen about 1.6% this week, leaving gold exposed to further losses should the currency strengthen.
The biggest mistake the US made was when Nixon removed the dollar from the gold standard. The company reported a flat GAAP profit number, with adjusted earnings still trending at just over a dollar per share on an annualised basis.


Also consider the general low valuation of gold stocks with today’s gold price (see near bottom of this article). With gold stocks as measured by the Gold Bugs Index, the 300 area is important because it was a resistance level and also the 2016 high in the index. The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. Base case indicates a mine life of 16 years, producing 367,000 ounces gold annually with life of mine average all-in sustaining costs of $694 per ounce.
Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic. When gold was at $2,089, everyone was saying to buy gold. Source: Company data, author’s spreadsheet increased by 21% to $1,135 million compared to the first half of 2019 due to high prices for gold and silver. Gold prices has mostly been trending in the lower Bollinger Band since its trend reversed in early August, suggesting that bearish side might be taking control.
Gold prices are trading down by 0.8% at Rs 50,282 per 10 grams. Gold prices are trading down by 0.7% at Rs 50,365 per 10 grams.


BEFORE THE BELL Canada s main stock index futures fell, as oil prices dipped on concerns over fuel demand. An industry body in the USA forecast the crude oil inventories to have fallen by 831,000 bbl last week. Naturally, the price of oil and gas is what pretty much drives revenue for the company, in addition to changes in volumes. Oil major Royal Dutch Shell Plc said it will cut as many as 9,000 jobs as it struggles with low demand and tries to restructure towards low-carbon energy.
The oil price action hurt the company’s upstream operations versus a year ago, contributing to the overall revenue decline.
While volumes matter, as do movements in balance sheet line items, there is no denying the clear correlation with oil prices and revenues for the company. Oil production at Norway s Johan Sverdrup field with a capacity of 470,000 bpd could be curtailed from Wednesday as workers of one of the unions go on strike. As you are likely aware, oil and gas prices were pretty strong in 2018 and receded quite a bit in 2019, then collapsed in 2020 with COVID. Oil prices dipped on concerns over fuel demand.
After talks between the Norwegian Oil and Gas Association and the Lederne labour union failed, the workers associated with the union have declared a strike.

United States

BEFORE THE BELL Wall Street futures, European and Japanese shares fell, after a chaotic first U.S. presidential debate and rising COVID-19 cases turned investors cautious. Wall Street futures, European and Japanese shares fell, after a chaotic first U.S. presidential debate and rising COVID-19 cases turned investors cautious. Even so, it discounted the damage that the pandemic was going to cause because the market reversed right away as the Fed announced record stimulus.
The reason: the Fed’s explicit backstop of the corporate bond market since March, when Powell announced the Fed would purchase corporate bonds and ETFs. Biden-Trump debate on tap.Macro Market Quick Take – September 29, 2020 Democratising trading and investment for more than 25 years. While the debate yielded little new, it heightened concerns that President Donald Trump might not accept the result and that the outcome could therefore be delayed. 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.
Candidates aside, stocks hit record highs during President Trump’s term because Republican policies are good for equities. Nasdaq Futures are trading down by 123 points (down 1.1%), while Dow Futures are trading down by 293 points (down 1%). Nasdaq Futures are trading down by 122 points (down 1.1%), while Dow Futures are trading down by 266 points (down 1%).


In other words, Beijing is turning up the pressure on an American tech giant and creating a bargaining chip out of thin air. Now, Beijing is lashing out at an American tech giant – Google parent Alphabet – by taking a page out of EU antitrust head Margrethe Vestager’s playbook. It is also of importance that CKHUY can maintain, and hopefully build a good relationship with the various leaders in Beijing. As Beijing turns inward, trade partners have reason to fear the model will stick.
Then came COVID-19, and last but certainly not least, Beijing’s imposing laws covering National Security. So it’s unclear what, exactly, is being targeted by Beijing.


Most recently, the European Commission laid out plans to increase the EU’s 2030 renewable energy target from the current 32 percent up to 38–40 percent. At any rate, with the election for Merkel’s successor coming next year, The opposition Greens are doing everything they can to push the issue. There might be lack of even 10-30-year bonds as well because the ECB has bought a large share of the bond market under its asset purchase programmes. The ECB is worried about weak consumer prices after preliminary German Consumer Price Index figures showed ongoing softness.Will the Frankfurt-based institution add to its stimulus?
Between Brexit, a second virus wave, and the return of some business restrictions, we could easily see a 2 to 3% correction.
The latest ECB staff projections foresee annual real GDP growth at -8.0% in 2020, 5.0% in 2021 and 3.2% in 2022. While the head of the ECB is pushing in that direction, the hawks are ready to fight back. French President Emmanuel Macron continues his trip to the Baltic states with a visit to Latvia today. ECB to consider allowing inflation to overshoot, Lagarde says.
He’s remained positive even as talks between the EU and UK deteriorate.