|Day's Range||298.50 - 303.90|
** Crude prices rose sharply as a meeting of OPEC and its allies agreed to extend output cuts by 500,000 barrels per day in early 2020, sending the energy sector surging 3%. ** The additional cuts by the Organization of the Petroleum Exporting Countries and allies including Russia - a grouping known as OPEC+ - will last throughout the first quarter next year. * At 9:40 a.m. ET (1440 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 104.94 points, or 0.62%, at 16,959.86.
Spot gold was down 0.2% at $1,473.16 an ounce at 0802 GMT. U.S. gold futures fell 0.3% to $1,478.00. "This week gold continued to march on the higher side and today we can see some profit booking," said Ajay Kedia, director at Kedia Advisory in Mumbai, adding that China's move on Friday was pressuring prices further.
The British pound rallied again during the trading session on Thursday, breaking above the 1.31 level yet again. At this point, there is a lot of bullish pressure underneath and it should be obvious that we are broken out.
The S&P; 500 fell rather hard during the trading session on Monday after a dismal ISM Manufacturing PMI figure came out. That being said though, it’s very likely that we are going to continue to see support underneath.
Soybean futures in the January contract is trading higher by 2 cents at 8.79 a bushel breaking a 7 day losing streak as this market could possibly be experiencing oversold conditions at this time.
Based on the early price action and the current price at 1.1023, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to the downtrending Gann angle at 1.1027 and the main 50% level at 1.1029.
There’s uncertainty over the trade deal at the start of the new week, but this is being offset by China’s solid manufacturing reports. Furthermore, if financial market traders saw a major problem developing, they’d be buying Treasurys, thereby lowering interest rates and making gold a more attractive investment.
Weather during harvest season in the U.S. Red River Valley, a fertile sugar beet region in Minnesota and North Dakota, has felt like a series of plagues to farmers. Next came a deep freeze, ruining the underground sugar beet crop, and dealing a harsh blow to farm incomes. "I can take a couple of perils from Mother Nature and after that I’m on my knees," said Dan Younggren, 59, who was unable to harvest 500 acres (200 hectares) of sugar beets, or 40% of his plantings near Hallock, Minnesota.
Weather during harvest season in the U.S. Red River Valley, a fertile sugar beet region in Minnesota and North Dakota, has to farmers felt like a series of plagues. Next came a deep freeze, ruining the underground sugar beet crop, and dealing a harsh blow to farm incomes. "I can take a couple of perils from Mother Nature and after that I’m on my knees," said Dan Younggren, 59, who was unable to harvest 500 acres (200 hectares) of sugar beets, or 40% of his plantings near Hallock, Minnesota.
Soybean futures in the January contract is trading lower for the 5th consecutive session down another $0.07 at 8.85 a bushel hitting a 10 week low continuing its bearish momentum.
Investing.com - Reading the U.S.-China negotiations have become as much of an art as parsing tea leaves, with any market likely to rise or dip depending on the reading. While oil prices rose on Monday, gold prices slipped, hitting more than two-week lows.
(Bloomberg) -- A barrage of trade-talk headlines and attacks in the Middle East has resulted in a turbulent year for the oil industry, but an unusual buying strategy has made it even more challenging for firms servicing China’s independent refineries.The refiners, known as teapots and clustered in Shandong province, have been keeping their counter-parties up all night due to a purchasing method known as trigger pricing. Rather than buy cargoes at a one-off price based on monthly averages, the industry norm, these processors lock-in prices in portions at different levels over a period of around a month.If, for example, a teapot buys a shipment of 1 million barrels of crude it can pay for it in separate lots of as small as 1,000 barrels. When the refiner thinks prices look sufficiently cheap it buys part of the shipment and can purchase more later. And given that oil generally moves more in European and American trading hours, many of these orders - sent via phone calls, email or instant messaging services -- are made in the wee hours of the Asian night.While trigger pricing gives teapots a chance to time their buying to get an overall lower price, their ability to out-smart the market depends on a combination of acumen and luck. Regardless of their success, however, counter-parties that include trading houses, oil majors and Chinese state-owned companies are finding themselves swamped with orders and paperwork.“It’s just like gambling: sometimes they win, sometimes they lose,” said Chen Tong, an analyst at First Futures in Tianjin. “For the trading houses, it’s a never-ending job, being constantly stuck on cellphones when clients put in orders.”International oil majors and bigger traders -- such as Trafigura Group Ltd. and Vitol Group -- are able to respond to the round-the-clock orders from their offices across Asia, Europe and the U.S. BP Plc has even launched a mobile phone app -- BP TriGO -- for teapots to input their requests, which is supported by a team of traders who execute the orders in real time.Chinese companies such as PetroChina Co. and Sinopec have staff on standby 24-7 in Beijing to service the teapots. For these companies, and others, fear of missing out on business means they have no choice but to respond at all hours.Recently, there’s been a lot to keep them awake. Rapid shifts in sentiment on the U.S-China trade relationship, White House sanctions, heightened tension in the Middle East and speculation over OPEC’s output limits have all buffeted crude this year. Volatility in West Texas Intermediate oil has averaged 36% over the past 12 months, compared with 25.7% in the previous year.“This year, there’s been so many events for oil markets to trade on,” said Gao Jian, an analyst at Zhaojin Futures Co. in Shandong. “There are loads of distractions and price deviations, which have resulted in a higher frequency of triggering by teapots in order to control costs.”Trigger-pricing predates the teapots, which have only been able to import crude since 2015, originating with Chinese buyers of commodities like soybeans and fuel oil. The high-risk approach appealed to the entrepreneurs who moved into refining from other industries such as textiles and oil-seed processing.The Chinese teapot sector has been challenging for international oil companies to penetrate due to issues around credit-worthiness and non-performance on deals. But the independent refiners have grown quickly as Beijing awarded them more import quota and have become increasingly hard to ignore. Teapots processed a record 1.79 million barrels a day of imported crude last month, more than twice as much as three years earlier, according to data from industry researcher SCI99.Trigger pricing owes much of its popularity to the “delusional confidence” of teapots who think they can beat the market, said Chen at First Futures. But it’s the Chinese way of doing things, so the counter-parties “can’t do much about it if they want a seat in the market,” he said.(Updates with details on teapot processing volumes in 11th paragraph.)To contact Bloomberg News staff for this story: Sarah Chen in Beijing at firstname.lastname@example.org;Alfred Cang in Singapore at email@example.com;Serene Cheong in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Serene Cheong at email@example.com, Andrew JanesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Malaysian palm oil futures fell more than 1% on Friday as prices of rival oils on the Dalian exchange and the Chicago Board of Trade slipped, though a weaker ringgit limited the losses. The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange fell 0.2% to 2,524 ringgit ($610.84) per tonne, extending losses to a third straight session. The contract opened 1.3% lower at 2,520 ringgit.
India's gold demand is expected to fall to its lowest level in three years in 2019, the World Gold Council (WGC) said on Tuesday, as domestic prices climb to a record against a backdrop of falling earnings in rural areas, a key source of custom for the precious metal. Gold demand in 2019 could drop 8% from a year ago to around 700 tonnes, the lowest since 2016, said Somasundaram PR, the managing director of WGC's Indian operations. In a report, the WGC said India's gold consumption in the quarter ended September slumped nearly a third from a year ago to 123.9 tonnes.
Excessive rains and an October snowstorm have stalled the harvest in the U.S. grain belt's northern tier, one more blow to farmers already struggling with the effects of planting delays and a trade war that has pressured commodity prices. The corn and soybean harvests are especially delayed in North Dakota and Minnesota - precisely the states suffering the most from the U.S.-China trade war due to their reliance on exporting to Asia through West Coast ports.
"The recovery is on its way," proclaimed one analyst, speaking about the dry bulk sector ... in 2014. "The trough is now squarely in the rear-view mirror," said another a half-decade ago. As it turned out, dry bulk earnings set fresh lows in early 2015, came up a little, then crashed to an all-time nadir in early 2016.
COT on commodities in week to October 22 showed hedge funds buying futures across all three sectors. Buyers returned to oil, gold and silver albeit at a modest pace while grains once again saw the bulk of demand
Investing.com - A surprise weekly drawdown in U.S. crude stocks and OPEC jawboning about deeper production cuts have suddenly energized dreary trading in oil, pushing prices to three-week highs.
Investing.com --- Gold prices crept back above $1,500 an ounce Thursday as more weak economic data out of Europe and Japan kept up hopes of yet more monetary stimulus.
The EPA's plan to begin replacing 4 billion gallons of ethanol lost to waivers for oil refiners was met with displeasure Tuesday by some trade groups.
President Trump is trying to patch up his badly damaged relationship with American farmers, and large US refiners are the most likely losers of this ‘compensation package’