20210227

Commodities Corner: Bitcoin Crashes 16%, Copper Scores Best Month Since 2016

Get Rich or Die Mining?  

Bitcoin, the peer-to-peer decentralized digital currency, is coming off its worst week in almost a year. Investors sold off their riskier assets in the global financial markets amid international bond yields going through the roof. As a result, traders were ditching non-yielding assets in favor of something more solid. Bitcoin exchange-traded funds (ETFs) also recorded substantial launches, flipping negative soon after recording tremendous inflows upon their debut. From Grayscale’s Bitcoin Trust to the Purpose Bitcoin ETF, many of these paper investments slipped below their debut prices.  

One market observer summarized the situation in an interview with Coindesk: “Cash is king in times of distress, not bitcoin.” Denis Vinokourov, head of research at Bequant, told the crypto news publication:

Despite the narrative being sold by crypto maximalists that digital assets are a safe-haven asset, the use of bitcoin suggests it is more of a risk asset. Thus, liquidity events such those witnessed this week in equity markets will subsequently feed into digital assets, even if fundamentally the two are not related.

During last week’s market rout among the leading benchmark indexes, investors were diving into the US dollar, Swiss franc, and Japanese yen. It became so bad for the cryptocurrency that bitcoin traded below its 10-hour and 50-hour averages, highlighting a bearish signal in the virtual currency. Is this a sign that bitcoin prices will suffer monumental losses as they did a few years ago after reaching $19,000? Not quite.  

Earlier this week, one of the reasons the virtual currency crashed was an overheated derivatives market. This forced investors to exit leveraged positions, or they were liquidated from these bets. As bitcoin prices plunged below $50,000, the rest of the stock market plummeted, too.  

The cryptocurrency market took another beating by Bill Gates, Treasury Secretary Janet Yellen, and Charlie Munger’s comments. They all described bitcoin as highly speculative, with these high-profile individuals demanding greater regulation and enforcement.

  • Friday Settlement: -$2,125.00, or 4.33%, to $46,995.00 per coin  
  • Weekly Performance: -15.93%  
  • February Performance: +25.87%  
  • YTD Performance: +60.83%  

What’s Brewing in the Coffee Market?  

The international coffee market might be brewing up a larger-than-expected supply deficit amid renewed demand and potential output disruptions in South America.  

Rabobank, a Dutch financial institution with an immense presence in the agricultural sector, projected that the global coffee industry will likely experience a bigger deficit in the 2021–2022 marketing season than what was initially anticipated. It cited Brazil, one of the world’s largest producers, enduring below-average rainfall.  

This has analysts predicting a global balance supply deficit of 2.6 million 60-kg bags in 2021–2022, more than double the original forecast of 1.1 million bags in December. Brazil’s new crop is being pegged at 56.2 million bags, down from 57.4 million bags in December. Rabobank also estimates that Colombia’s production will slide by 300,000 bags to 14.1 million bags.  

At the same time, the deficit is not greater because global demand is projected to slump by 500,000 bags.  

We trim our 2021/22 production number by just over 2 mln bags – 1.2 mln bags of this drop comes from a downward adjustment in Brazil.  

Net imports in non-producing countries continued to come in weak in Q4 2020.  

  • Friday Settlement: -$0.001, or 0.07%, to $1.374 per pound  
  • Weekly Performance: +6.22%  
  • February Performance: +12.3%  
  • YTD Performance: +7.93%  

Get to the Copper  

Copper prices enjoyed their biggest monthly gain since 2016, soaring nearly 16% in February. As supplies tighten, output slumps, and demand strengthens, the industrial metal is surging. Although copper futures plummeted close to 4% on Friday, they still settled the week with a gain of about 0.9%.  

The red metal is taking its cue from the broader financial markets and economic recovery. Investors are bullish on copper amid anticipated demand in the post-coronavirus economy, especially in China, which accounts for more than half of the world’s copper consumption. Beijing has substantially increased its copper imports as the planet’s second-largest economy restocks its declining inventories.  

According to a new report from the International Copper Study Group (ICSG), preliminary estimates highlight an imbalance of 590,000 metric tons in the refined copper market. DWS Group thinks copper consumption will grow 3% per year, which could accelerate the industrial metal’s value since very few announcements have been regarding new capital spending and increased supply.  

It is also crucial to point out that copper is an important component of renewable energy and alternative fuel technology. With more nations turning to green energy for a diverse array of aspects of the economy, copper’s demand is expected to intensify.  

Could rising interest rates send copper plummeting? Markets have indicated that they fear policy tightening could occur due to rising inflation. But industry observers contend that bullish conditions remain intact for copper to test all-time highs.   

  • Friday Settlement: -$0.1615, or 3.79%, to $4.102 per pound  
  • Weekly Performance: +0.87%  
  • February Performance: +15.86%  
  • YTD Performance: +16.53%  

Bears Take Control of Natural Gas?  

A disappointing week, but a strong February — this is how it was for natural gas prices. The so-called bridge fuel experienced an enormous selloff once investors due to Arctic-like conditions subsiding and domestic supplies not facing intense pressure as bulls initially hoped, despite the US posting the second-largest weekly withdrawal on record 

The latest weather models suggest that March temperatures will be at or slightly above seasonal norms, although there could be brief periods of frigid cold. With the US awash in natural gas, these weather patterns not severe enough to consume the country’s vast natural gas stocks.  

Bespoke Weather Services says that these temperatures point to low demand in the first half of March.  

Given the look of the pattern out of day 15, it looks more likely than not that the warmth continues into the 16- to 20-day period as well, with very little in the way of any cool air source showing up thanks to a Pacific pattern that is quite hostile for cold. This is the pattern type that has dominated the season, save for the previous two weeks which were cold. 

Still, natural gas prices could find a modicum of near-term support on the sector being undersupplied by 4.1 billion cubic feet per day for the next ten weeks. Whether this is offset by easing demand or accelerated by an unexpected blast of winter remains to be seen.  

  • Friday Settlement: +$0.002, or 0.07%, to $2.811 per million British thermal units (btu)  
  • Weekly Performance: -8.79%  
  • February Performance: +9.93%  
  • YTD Performance: +10.84%  

If you have any questions and comments on commodities today, use the form below to reply. 


© AndrewMoran for Commodity News, 2021. | Permalink | No comment |
Published under: Bitcoin, Coffee, Copper, Natural Gas

Via Commodity News https://bit.ly/2OA2lVq

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United States Imports of Automobiles & Parts (bci 616)



Imports of Automobiles & Parts (bci 616) in the United States increased to 33481 USD Million in December from 31939 USD Million in November of 2020. Imports of Automobiles & Parts (bci 616) in the United States averaged 14628.38 USD Million from 1978 until 2020, reaching an all time high of 34537 USD Million in October of 2018 and a record low of 1755 USD Million in August of 1978. This page includes a chart with historical data for the United States Imports of Of Automobiles & Parts (bci 616).
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/imports-of-automobiles-parts-bci-616

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United States Imports of Consumption of Alloy Steel Products



Imports of Alloy Steel Products in the United States increased to 382566 USD THO in January from 313237 USD THO in December of 2020. Imports of Alloy Steel Products in the United States averaged 417787.45 USD THO from 2000 until 2021, reaching an all time high of 840889 USD THO in May of 2012 and a record low of 143296 USD THO in May of 2002. This page includes a chart with historical data for the United States Imports of For Consumption of Alloy Steel Products.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/imports-of-consumption-of-alloy-steel-products

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United States Imports of Consumption of Carbon Steel Produc



Imports of Carbon Steel Produc in the United States increased to 1111276 USD THO in January from 793375 USD THO in December of 2020. Imports of Carbon Steel Produc in the United States averaged 1335658.99 USD THO from 2000 until 2021, reaching an all time high of 2864757 USD THO in October of 2008 and a record low of 502731 USD THO in May of 2002. This page includes a chart with historical data for the United States Imports of For Consumption of Carbon Steel Produc.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/imports-of-consumption-of-carbon-steel-produc

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United States Imports For Consumption Of Stainless Steel Products



Imports For Consumption Of Stainless Steel Products in the United States decreased to 153810 USD THO in January from 179610 USD THO in December of 2020. Imports For Consumption Of Stainless Steel Product in the United States averaged 272860.34 USD THO from 2000 until 2021, reaching an all time high of 617797 USD THO in June of 2007 and a record low of 101624 USD THO in September of 2001. This page includes a chart with historical data for the United States Imports of For Consumption of Stainless Steel Pro.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/imports-of-consumption-of-stainless-steel-pro

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United States Imports of Consumption of Steel Products



Imports of Steel Products in the United States increased to 1647652 USD THO in January from 1286222 USD THO in December of 2020. Imports of Steel Products in the United States averaged 1955786.91 USD THO from 1997 until 2021, reaching an all time high of 4054735 USD THO in October of 2008 and a record low of 778677 USD THO in May of 2002. This page includes a chart with historical data for the United States Imports of For Consumption of Steel Products.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/imports-of-consumption-of-steel-products

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United States Overnight Repo Rate



The United States Overnight Repo Rate decreased to 0.03 on Friday February 26 from 0.07 in the previous day. Repo Rate in the United States averaged 2.29 from 1995 until 2021, reaching an all time high of 6.94 in September of 2019 and a record low of -0.01 in December of 2009. Overnight repo rate is the interest rate at which different market participants swap treasuries for cash to cover short-term cash needs. The repo rate is helping to ensure banks have the liquidity to meet their daily operational needs and maintain sufficient reserves. The repo rate usually trades in line with the Federal Reserve’s target interest rate. This page provides - United States Repo Rate- actual values, historical data, forecast, chart, statistics, economic calendar and news.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/repo-rate

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United States Steel Production



Steel Production in the United States increased to 6900 Thousand Tonnes in January from 6434 Thousand Tonnes in December of 2020. Steel Production in the United States averaged 7857.85 Thousand Tonnes from 1969 until 2021, reaching an all time high of 11951 Thousand Tonnes in May of 1973 and a record low of 3799 Thousand Tonnes in April of 2009. This page has Steel Production values for United States.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/steel-production

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Weekly Forex Technical Analysis (Mar 1 — Mar 5, 2021)

EUR/USD

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
1.1828 1.1945 1.2009 1.2126 1.2190 1.2307 1.2371

EUR/USD - Floor pivot points as of Feb 27, 2021

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
1.1932 1.1982 1.2113 1.2163 1.2294

EUR/USD - Woodie's pivot points as of Feb 27, 2021

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
1.1973 1.2023 1.2040 1.2056 1.2089 1.2106 1.2122 1.2172

EUR/USD - Camarilla pivot points as of Feb 27, 2021

Tom Demark’s pivot points

Support Resistance
1.1977 1.2158

EUR/USD - Tom Demark's pivot points as of Feb 27, 2021

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
1.2062 1.2105 1.2131 1.2153 1.2174 1.2243

EUR/USD - Fibonacci retracement levels as of Feb 27, 2021

GBP/USD

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
1.3443 1.3665 1.3796 1.4019 1.4149 1.4372 1.4503

GBP/USD - Floor pivot points as of Feb 27, 2021

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
1.3642 1.3750 1.3996 1.4104 1.4349

GBP/USD - Woodie's pivot points as of Feb 27, 2021

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
1.3733 1.3830 1.3862 1.3895 1.3959 1.3992 1.4024 1.4121

GBP/USD - Camarilla pivot points as of Feb 27, 2021

Tom Demark’s pivot points

Support Resistance
1.3731 1.4084

GBP/USD - Tom Demark's pivot points as of Feb 27, 2021

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
1.3888 1.3971 1.4023 1.4064 1.4106 1.4241

GBP/USD - Fibonacci retracement levels as of Feb 27, 2021

USD/JPY

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
103.64 104.28 105.42 106.06 107.19 107.83 108.96

USD/JPY - Floor pivot points as of Feb 27, 2021

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
104.41 105.67 106.18 107.44 107.95

USD/JPY - Woodie's pivot points as of Feb 27, 2021

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
105.58 106.06 106.23 106.39 106.71 106.88 107.04 107.53

USD/JPY - Camarilla pivot points as of Feb 27, 2021

Tom Demark’s pivot points

Support Resistance
105.74 107.51

USD/JPY - Tom Demark's pivot points as of Feb 27, 2021

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
104.92 105.34 105.60 105.81 106.02 106.70

USD/JPY - Fibonacci retracement levels as of Feb 27, 2021

AUD/USD

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
0.7279 0.7486 0.7594 0.7801 0.7909 0.8116 0.8224

AUD/USD - Floor pivot points as of Feb 27, 2021

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
0.7461 0.7545 0.7776 0.7860 0.8091

AUD/USD - Woodie's pivot points as of Feb 27, 2021

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
0.7530 0.7616 0.7645 0.7674 0.7732 0.7761 0.7789 0.7876

AUD/USD - Camarilla pivot points as of Feb 27, 2021

Tom Demark’s pivot points

Support Resistance
0.7540 0.7855

AUD/USD - Tom Demark's pivot points as of Feb 27, 2021

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
0.7692 0.7767 0.7812 0.7850 0.7887 0.8007

AUD/USD - Fibonacci retracement levels as of Feb 27, 2021

USD/CAD

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
1.2277 1.2372 1.2552 1.2648 1.2828 1.2923 1.3103

USD/CAD - Floor pivot points as of Feb 27, 2021

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
1.2393 1.2595 1.2669 1.2870 1.2944

USD/CAD - Woodie's pivot points as of Feb 27, 2021

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
1.2581 1.2657 1.2682 1.2707 1.2758 1.2783 1.2808 1.2884

USD/CAD - Camarilla pivot points as of Feb 27, 2021

Tom Demark’s pivot points

Support Resistance
1.2600 1.2876

USD/CAD - Tom Demark's pivot points as of Feb 27, 2021

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
1.2468 1.2533 1.2573 1.2605 1.2638 1.2743

USD/CAD - Fibonacci retracement levels as of Feb 27, 2021

If you have any questions or comments on this technical analysis, please feel free to reply below.

Posted on Forex blog.

from Forex Blog https://www.earnforex.com/blog/weekly-forex-technical-analysis-mar-1-mar-5-2021/

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United States - Credit Rating



Fitch Ratings changed on Friday 31 July 2020 the United States’ sovereign rating outlook to negative from stable and affirmed the debt grade at AAA, citing as main trigger behind the revision the ongoing deterioration in the U.S. public finances and the absence of a credible fiscal consolidation plan, issues that were highlighted in the agency's last rating review on March 26, 2020. Standard & Poor's credit rating for the United States stands at AA+ with stable outlook. Moody's credit rating for the United States was last set at Aaa with stable outlook. DBRS's credit rating for the United States is AAA with stable outlook. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of the United States thus having a big impact on the country's borrowing costs. This page includes the government debt credit rating for the United States as reported by major credit rating agencies.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/rating

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United States Personal Savings Rate



Household Saving Rate in the United States increased to 20.50 percent in January from 13.70 percent in December of 2020. Personal Savings in the United States averaged 8.96 percent from 1959 until 2021, reaching an all time high of 33.70 percent in April of 2020 and a record low of 2.20 percent in July of 2005. In the United States, Personal Saving Rate correspond to the ratio of personal income saved to personal net disposable income during a certain period of time. This page provides - United States Personal Savings Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/personal-savings

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Commodities Week in Review: February 22 to February 26

Commodities Week in Review: February 22 to February 26

Agriculture 

As the broader financial markets suffered significant losses in the final trading week of February, most of the agricultural commodities presented decent gains. Rising Treasurys, portfolio rebalances, and inflation fears weighed on equities, sparking predictions that the financial markets are going through a reflation trade: economic growth and accelerating inflation. Overall, agriculture had a superb week and an excellent February.

Cocoa 

  • Friday Settlement: +$10.00, or 0.38%, to $2,614 per metric ton
  • Weekly Performance: +6.87%
  • February Performance: +3.65%
  • YTD Performance: +0.65%

Coffee 

  • Friday Settlement: -$0.001, or 0.07%, to $1.374 per pound
  • Weekly Performance: +6.22%
  • February Performance: +12.3%
  • YTD Performance: +7.93%

Corn 

  • Friday Settlement: -$0.0075, or 0.14%, to $5.49 per pound
  • Weekly Performance: +1.1%
  • February Performance: +0.32%
  • YTD Performance: +13.02%

Cotton 

  • Friday Settlement: -0.69 cent, or 0.77%, to 89.00 cents per pound
  • Weekly Performance: -1.86%
  • February Performance: +10.33%
  • YTD Performance: +13.8%

Lean Hogs

  • Friday Settlement: -$0.02375, or 2.65%, to 87.375 cents per pound
  • Weekly Performance: +3.25%
  • February Performance: +25.18%
  • YTD Performance: +24.2%

Orange Juice 

  • Friday Settlement: 0% to $1.1175 per pound
  • Weekly Performance: +1.73%
  • February Performance: +1.18%
  • YTD Performance: -11.2%

Rice 

  • Friday Settlement: +$0.001, or 0.08%, to $12.76 per pound
  • Weekly Performance: -0.16%
  • February Performance: -0.89%
  • YTD Performance: +7.09%

Soybeans 

  • Friday Settlement: +$0.0025, or 0.02%, to $14.0775 per pound
  • Weekly Performance: +2.14%
  • February Performance: +2.92%
  • YTD Performance: +7.44%

Sugar 

  • Friday Settlement: +0.03 cent, or 0.18%, to 16.48 cents per pound
  • Weekly Performance: -2.54%
  • February Performance: +3.97%
  • YTD Performance: +6.32%

Wheat 

  • Friday Settlement: -$0.155, or 2.29%, to $6.6025 per bushel
  • Weekly Performance: +0.34%
  • February Performance: -0.38%
  • YTD Performance: +2.88%

Bitcoin 

What happened to the peer-to-peer decentralized digital currency bitcoin? The cryptocurrency had a meteoric ascent, soaring to an all-time high of around $58,000. Since then, the virtual currency has wiped out approximately $11,000, sparking concerns that bitcoin is going through a correction or that its bubble has been burst. Could this be the end of the bitcoin surge or will forecasts of $100,000 come to fruition?

  • Friday Settlement: -$2,125.00, or 4.33%, to $46,995.00 per coin
  • Weekly Performance: -15.93%
  • February Performance: +25.87%
  • YTD Performance: +60.83%

Energy 

Could crude oil prices face a selloff ahead of next week’s Organization of Petroleum Exporting Countries (OPEC) meeting. This is a crucial meeting because it will focus on discussions over output curbs, particularly on the restoration of 500,000 barrels per day (bpd) of production in April and Saudi Arabia either maintaining or reducing its output cut of one million bpd. Meanwhile, natural gas endured another selloff as warmer weather patterns are forming and the weekly supply withdrawal, despite being the second-largest on record, matched market expectations.

West Texas Intermediate (WTI) Crude Oil 

  • Friday Settlement: -$1.87, or 2.94%, to $61.66 per barrel
  • Weekly Performance: +4.44%
  • February Performance: +18.26%
  • YTD Performance: +27.34%

Brent Crude Oil 

  • Friday Settlement: +$0.21, or 0.33%, to $64.63 per barrel
  • Weekly Performance: +2.85%
  • February Performance: +17.3%
  • YTD Performance: +24.96%

Natural Gas 

  • Friday Settlement: +$0.002, or 0.07%, to $2.811 per million British thermal units (btu)
  • Weekly Performance: -8.79%
  • February Performance: +9.93%
  • YTD Performance: +10.84%

Gasoline 

  • Friday Settlement: -$0.0259, or 1.31%, to $1.9505 per gallon
  • Weekly Performance: +4.37%
  • February Performance: +25.61%
  • YTD Performance: +38.23%

Heating Oil 

  • Friday Settlement: -$0.0568, or 2.99%, to $1.8411 per gallon
  • Weekly Performance: +2.23%
  • February Performance:+15.39%
  • YTD Performance: +24%

Metals 

The metals market was dominated by the spike in copper prices as the industrial metal enjoyed its best month in five years, buoyed by strengthening demand and falling supply. But precious metals failed to mirror this performance, with gold and silver having lackluster performances in the last week and February, despite single sessions of considerable rallies. A stronger greenback weighed on the dollar-pegged commodities, with the US Dollar Index (DXY) climbing 0.7% this week.

Gold 

  • Friday Settlement: -$42.40, or 2.39%, to $1,733.00 per ounce
  • Weekly Performance: -2.81%
  • February Performance: -6.31%
  • YTD Performance: -8.87%

Silver 

  • Friday Settlement: -$0.985, or 3.56%, to $26.70 per ounce
  • Weekly Performance: -2.45%
  • February Performance: -1.28%
  • YTD Performance: +0.66%

Copper 

  • Friday Settlement: -$0.1615, or 3.79%, to $4.102 per pound
  • Weekly Performance: +0.87%
  • February Performance: +15.86%
  • YTD Performance: +16.53%

Palladium 

  • Friday Settlement: -$109.80, or 4.55%, to $2,305.00 per ounce
  • Weekly Performance: -3.13%
  • February Performance: +3.43%
  • YTD Performance: -6.13%

Platinum 

  • Friday Settlement: -$38.70, or 3.14%, to $1,192.80 per ounce
  • Weekly Performance: -6.97%
  • February Performance: +10.45%
  • YTD Performance: +10.5%

Steel 

  • Friday Settlement: +$4.00, or 0.32%, to $1,264.00 per ton
  • Weekly Performance: +1.28%
  • February Performance: +16.61%
  • YTD Performance: +31.26%

If you have any questions and comments on commodities today, use the form below to reply.


© AndrewMoran for Commodity News, 2021. | Permalink | No comment |
Published under: Cocoa, Coffee, Copper, Corn, Cotton, Gold, Hogs, Natural Gas, Oil, Orange Juice, Palladium, Platinum, Rice, Silver, Soybean, Steel, Sugar, Wheat

Via Commodity News https://bit.ly/2OA2lVq

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20210226

Bitcoin Can Rally to $100,000 by May – Samson Mow

Bitcoin (BTC) lost value on February 26, failing to hold on to $50,000. Still, the industry has full confidence in the largest digital currency.

Samson Mow, CSO of blockchain technologies provider Blockstream, suggested that Bitcoin will see a new all-time high (ATH) soon.

In his February 26 post, Mow stated that Bitcoin is constantly changing hands and moving from weak hands to strong hands.

For some, the correction in the price of Bitcoin in the past five days wasn’t seen as worrisome but rather as an opportunity for institutional investors to buy.

For example, on February 23, financial services giant, Square announced investing another $170 million in Bitcoin. According to the company, the purchase represents about 5% of its estimated $4.4 billion cash reserves.

In addition, business intelligence giant MicroStrategy, a leading institutional Bitcoin investor, also bought $1 billion worth of BTC. The company’s total BTC reserves exceeded 90,000 after this acquisition.

In his response to a Twitter user who asked if it’s possible to see Bitcoin at $100,000 in May, Mow answered by saying “this is very possible.”

Mow is not the only person who thinks the Bitcoin bull market will continue. Blockstream CEO Adam Back also pointed out that institutional investors are continuing to buy BTC and cautioned those who sell Bitcoin for less than $50,000.

Mow is not the only name that has positive predictions about Bitcoin. Fundstrat Co-Founder, Tom Lee made a similar statement in his February 23 post, claiming that the Bitcoin price is targeting $100,000

Moreover, the US-based cryptocurrency exchange, Kraken shared a chart of the stock-flow model of the famous analyst PlanB in its January 25 post. According to the chart, the Bitcoin price should reach $85,000 approximately one year after the halving in May 2021, and that it will be at a point between $100,000 and $288,000 by the end of the year.

At the time of writing, Bitcoin, which has lost 4.25% in the last 24 hours, is trading at $46,743.

If you have any questions and comments on Bitcoin today, use the form below to reply.


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Published under: Bitcoin, Forecasts

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EUR/USD Erases Week’s Gains on Friday

EUR/USD sank today, erasing all of the gains it had managed to acquire during the rest of the week. Some market analysts explained the move by the weakness of global stocks that drove traders towards the safety of the dollar. As for US data, it was largely underwhelming, with the exception of personal income and PCE inflation.

Personal income and spending rose in January. Personal income climbed by 10.0%, exceeding the average forecast of 9.4%, after increasing by 0.6% in the previous month. Personal spending rose by 2.4%, missing the forecast of 2.6%, after falling by 0.4% in December (revised from a decline of 0.2%). Core PCE inflation remained unchanged at 0.3%, whereas economists were expecting it to slow to 0.1%. (Event A on the chart.)

Chicago PMI dropped from 63.8 in January to 59.5 in February. While market participants were expecting a drop, they were counting on a smaller decline to 61.0. (Event B on the chart.)

Michigan Sentiment Index fell to 76.8 in February from 79.0 in January according to the revised estimate. That is compared with the consensus forecast of 76.5 and the preliminary reading of 76.2. (Event C on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

Posted on Forex blog.

from Forex Blog https://www.earnforex.com/blog/eur-usd-erases-weeks-gains-on-friday/

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Gold Crashes 3% on Rallying US Dollar, Treasurys

Gold futures are cratering to finish the volatile trading week, driven by rising bond yields and a strengthening US dollar. The precious metals could find support next week after the US government is on track to pass the Democrats’ $1.9 trillion pandemic relief package, fueling inflation concerns. But could gold prices slide below $1,700 next?

April gold futures plummeted $56.20, or 3.17%, to $1,719.20 per ounce at 16:23 GMT on Friday on the COMEX division of the New York Mercantile Exchange. The yellow metal will finish the week down nearly 4%, adding to its year-to-date slide of about 10%.

Silver, the sister commodity to gold, recorded even greater losses at the end of the trading week. May silver futures erased $1.297, or 4.69%, to $26.34 per ounce. The white metal will post a weekly drop of 4%, sending silver prices into negative territory for the year.

The most significant factor for metal commodities this week had been soaring bond yields. A boom in Treasurys is bearish for the metals market because it increases the opportunity cost of holding assets that do not offer interest or dividends.

Bonds have eased in intraday trading, with the benchmark 10-year Treasury down 0.019% to 1.496%. The one-year bill dipped 0.005% to 0.084%, while the 30-year bond slumped 0.08% to 2.29%>

A stronger greenback further weighed on gold prices on Friday. The US Dollar Index (DXY), which gauges the dollar against a basket of currencies, advanced 0.81% to 90.86, from an opening of 90.13. A stronger buck is typically bad for dollar-pegged commodities because it makes it more expensive for foreign investors to purchase.

Gold investors will be monitoring the state of the $1.9 trillion COVID-19 stimulus and relief package. Reports suggest the bill is poised to clear the House of Representatives on Friday night, although the Senate struck down the $15 minimum wage proposal.

House Speaker Nancy Pelosi (D-CA) told reporters:

House Democrats believe that the minimum wage hike is necessary.  Therefore, this provision will remain in the American Rescue Plan on the floor tomorrow.  Democrats in the House are determined to pursue every possible path in the Fight For 15.

Senate Minority Leader Mitch McConnell (R-KY) said in an interview with FOX News that a $600 billion plan is a lot more feasible.

My ten moderate Republicans went down to see the president, suggested that they could justify about $500 [billion] or $600 billion. This is $2 trillion. To put that in context, that’s what we spent at the height of the pandemic last April.

In other metal commodities, April copper futures crashed $0.1585, or 3.72%, to $4.1075 a pound. April platinum futures plunged $45.70, or 3.71%, to $1,185.80 an ounce. April palladium futures shed $101.80, or 4.22%, to $2,313.00 per ounce.

If you have any questions and comments on commodities today, use the form below to reply.


© AndrewMoran for Commodity News, 2021. | Permalink | No comment |
Published under: Gold

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United States Initial Jobless Claims



Initial Jobless Claims in the United States decreased to 730 thousand in the week ending February 20 of 2021 from 841 thousand in the previous week. Initial Jobless Claims in the United States averaged 372.45 Thousand from 1967 until 2021, reaching an all time high of 6867 Thousand in March of 2020 and a record low of 162 Thousand in November of 1968. Initial jobless claims have a big impact in financial markets because unlike continued claims data which measures the number of persons claiming unemployment benefits, Initial jobless claims measures new and emerging unemployment. This page provides the latest reported value for - United States Initial Jobless Claims - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/jobless-claims

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Building momentum on the ethical approach towards Artificial Intelligence endorsed by Pope Francis

The Rome Call for AI Ethics is a document created to support an ethical approach to Artificial Intelligence and promote a sense of shared responsibility among organizations, governments and institutions with the aim of guaranteeing a future in which digital innovation and technological progress are at the service of human ingenuity and creativity.

source http://www.fao.org/news/story/en/item/1377771/icode/

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United States Personal Consumption Expenditure Price Index



Pce Price Index in the United States increased to 112.53 points in January from 112.15 points in December of 2020. Pce Price Index in the United States averaged 59.68 points from 1959 until 2021, reaching an all time high of 112.53 points in January of 2021 and a record low of 16.07 points in January of 1959. In the United States, the Personal Consumption Expenditure Price Index provides a measure of the prices paid for domestic purchases of goods and services. While the Consumer Price Index assumes a fixed basket of goods and uses expenditure weights that do not change over time for several years, the Personal Consumption Expenditure Price Index uses a chain index and resorts on expenditure data from the current period and the preceding period (known as Fisher Price Index). This page provides the latest reported value for - United States Personal Consumption Expenditure Price Index - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/pce-price-index

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United States Personal Spending



Personal Spending in the United States increased 2.40 percent in January of 2021 over the previous month. Personal Spending in the United States averaged 0.53 percent from 1959 until 2021, reaching an all time high of 8.70 percent in May of 2020 and a record low of -12.70 percent in April of 2020. Personal consumption expenditures (PCE) is the primary measure of consumer spending on goods and services in the U.S. economy. 1 It accounts for about two-thirds of domestic final spending, and thus it is the primary engine that drives future economic growth. PCE shows how much of the income earned by households is being spent on current consumption as opposed to how much is being saved for future consumption. PCE also provides a comprehensive measure of types of goods and services that are purchased by households. Thus, for example, it shows the portion of spending that is accounted for by discretionary items, such as motor vehicles, or the adjustments that consumers make to changes in prices, such as a sharp run-up in gasoline prices. This page provides the latest reported value for - United States Personal Spending - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/personal-spending

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United States Goods Trade Balance



Goods Trade Balance in the United States decreased to -83740 USD Million in January from -83190 USD Million in December of 2020. Goods Trade Balance in the United States averaged -21760.57 USD Million from 1955 until 2021, reaching an all time high of 1492.20 USD Million in June of 1975 and a record low of -86113 USD Million in November of 2020. In the US, goods trade balance is equal to goods exports less goods imports. This page provides - United States Goods Trade Balance- actual values, historical data, forecast, chart, statistics, economic calendar and news.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/goods-trade-balance

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United States Personal Income



Personal Income in the United States increased 10 percent in January of 2021 over the previous month. Personal Income in the United States averaged 0.54 percent from 1959 until 2021, reaching an all time high of 12.40 percent in April of 2020 and a record low of -4.70 percent in January of 2013. Personal Income refers to the income that persons receive in return for their provision of labor, land, and capital used in current production, plus current transfer receipts less contributions for government social insurance. This page provides the latest reported value for - United States Personal Income - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/personal-income

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United States Wholesale Inventories



Wholesale Inventories in the United States increased 1.30 percent in January of 2021 over the previous month. Wholesale Inventories in the United States averaged 0.36 percent from 1992 until 2021, reaching an all time high of 2.10 percent in May of 2011 and a record low of -2 percent in March of 2009. The Wholesale Inventories are the stock of unsold goods held by wholesalers. Inventories are a key component of gross domestic product changes. A high inventory points to economic slowdown in the US, while a low reading points to a stronger growth. This page provides - United States Wholesale Inventories - actual values, historical data, forecast, chart, statistics, economic calendar and news.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/wholesale-inventories

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Cold weather results in near-record withdrawals from underground natural gas storage


Significant demand for natural gas in mid-February led to the second-largest reported withdrawal of natural gas from storage in the United States, according to the U.S. Energy Information Administration's (EIA) Weekly Natural Gas Storage Report (WNGSR). Weekly stocks fell by 338 billion cubic feet (Bcf) in the week ending February 19, 2021, nearly three times the average withdrawal for mid-February. A record amount of natural gas, 156 Bcf, was withdrawn during that week in the South Central region, which includes Texas.

Read more at eia.gov

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Bitcoin Price Drops Nears $44,000 – Will the Downtrend Continue?

The price of Bitcoin (BTC) continued to depreciate on February 26, despite constant purchases by institutional investors.

At around 07:00 GMT on Friday, the BTC/USD pair fell to $44,150 on Bitstamp — a level last seen two weeks ago —  after rising to $50,000.

Bitcoin has recently witnessed positive news, such as asset management firm Stone Ridge’s announcement of plans to become the first Bitcoin mutual fund and MicroStrategy and Square’s purchase of Bitcoin. However, this news was insufficient to stem the bearish mood, as the premier cryptocurrency has lost almost 10% in the past 24 hours.

Commenting on the downtrend, popular crypto investor, Scott Melker said on Twitter:

 

Earlier, crypto analyst Michaël van de Poppe said that if Bitcoin fails to find higher levels of buy volume, the final support level would be around $38,000.

A 1-hour candlestick chart of the BTC/USD pair. Source: Tradingview

Institutional investors continue to buy

Meanwhile, data from the professional trading arm of the US crypto exchange Coinbase shows that large amounts of BTC have been transferred from exchanges to private wallets. This often points to institutional investors buying.

This week saw a second jump in the number of BTC exiting exchanges, with 12,100 BTC moved from Coinbase.

Detailed graph of Coinbase Pro outflow. Source: Lex Moskovski / CryptoQuant

CryptoQuant CEO Ki Young Ju said that whales prefer to buy at current price levels, so it is unlikely for Bitcoin to drop below $44K.

At the time of writing, Bitcoin is trading above $47,000 as institutions are reaping the benefits of weak hands who are not done selling.


If you have any questions and comments on Bitcoin today, use the form below to reply.


© MarkStevenson for Commodity News, 2021. | Permalink | No comment |
Published under: Bitcoin

Via Commodity News https://bit.ly/2OA2lVq

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FAO’s Investment Centre doubles down on efforts to create more robust and sustainable agri-food systems

Mohamed Manssouri, Director of FAO’s Investment Centre discusses the Centre’s work and expansion plans.

source http://www.fao.org/news/story/en/item/1377511/icode/

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US Dollar LIBOR Three Month Rate



US Dollar LIBOR Three Month Rate was at 0.19 percent on Friday February 26. Interbank Rate in the United States averaged 3.63 percent from 1986 until 2021, reaching an all time high of 10.63 percent in March of 1989 and a record low of 0.18 percent in February of 2021. The three month US Dollar LIBOR interest rate is the average interest rate at which a LIBOR contributor bank can obtain unsecured funding in the London interbank market for a three month period in US dollars. This page provides - United States Interbank Rate- actual values, historical data, forecast, chart, statistics, economic calendar and news.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/interbank-rate

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20210225

FAO supports China-Latin America and the Caribbean partnership to boost agri-food systems

The second China-CELAC Forum was held under the joint chairmanship of the Secretary of Agriculture and Rural Development of Mexico, Victor Villalobos, and the Minister of Agriculture and Rural Affairs of China, TANG Renjian. Twenty-six Latin American and Caribbean countries were represented by their ministers or vice ministers.

source http://www.fao.org/news/story/en/item/1377572/icode/

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Natural Gas Flat Despite Second-Largest US Supply Withdrawal

Natural gas futures are trading relatively sideways on Thursday after the US government reported a weekly supply withdrawal that matched market expectations. The energy commodity is on track for a significant decline after peaking at $3.30 early last week. Are the bears in full control of natural gas markets?

April natural gas futures edged up by $0.002, or 0.07%, to $2.797 per million British thermal units (btu) at 16:19 GMT on Thursday on the New York Mercantile Exchange. Natural gas prices are poised for a weekly loss of about 8%, paring their year-to-date rally to below 10%.

According to the US Energy Information Administration (EIA), domestic inventories of natural gas decreased by 338 billion cubic feet for the week ending February 19. The market had penciled in a decline of 333 billion cubic feet, according to estimates from S&P Global Platts. This represented the second-largest storage withdrawal on record.

In total, US inventories stand at 1.943 trillion cubic feet, down 298 billion cubic feet from the same time a year ago. They are also 161 billion cubic feet below the five-year average.

Market observers argue that the weekly supply withdrawal would have been a lot higher if it were not for the demand destruction in Texas. Following the massive winter snowstorm that blanketed the Lone Star State, power outages were felt across America’s energy capital, resulting in output disruptions and supply interruptions.

According to a Goldman Sachs research note, long-term stocks seem adequate.

The impact on our longer-term U.S. gas balance is, in fact, negligible given the combination of warmer weather forecasts for March, and upward revisions to our supply estimates

In the end, it is obvious that the bears are in full control of the market. Despite having the second-largest decline in stockpiles on record, the bulls could not muster a substantial rally. Although financial analysts are bullish long-term, near-term prospects appear to be weak.

The weather will now dominate short-term trading patterns. With March contracts about to expire, April futures are being dominated by forecasts, and the latest weather models suggest warmer patterns. But there will be brief periods of chilly air in key parts of the US.

In other energy commodities, April West Texas Intermediate (WTI) crude oil futures added $0.12, or 0.19%, to $63.36 per barrel. May Brent crude futures dipped $0.09, or 0.14%, to $66.09 a barrel. April gasoline futures shed $0.0088, or 0.44%, to $1.9689 per gallon. April heating oil futures slipped $0.0075, or 0.39%, to $1.8925 a gallon.

If you have any questions and comments on commodities today, use the form below to reply.


© AndrewMoran for Commodity Blog, 2021. | Permalink | No comment |
Published under: Natural Gas

Via Commodity Blog https://bit.ly/2OA2lVq

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Transforming agri-food systems is powerful lever for achieving global goals

A holistic redesign of the world’s agri-food systems can make outsized contributions to achieving global pledges such as ending hunger by 2030, FAO Director-General QU Dongyu said in a keynote lecture at Italy’s historic Accademia Nazionale dei Lincei.

source http://www.fao.org/news/story/en/item/1377484/icode/

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Silver Price Forecast: XAG Settles, Can Bulls Force a SLV Breakout?

Silver kicked off February with a fresh seven-year-high but quickly retreated after touching above the 30 level. Can buyers force a sustainable break?

source  Read More!

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Be Careful When Selling BTC for Under $50k, Adam Back Warns

Bitcoin (BTC) experienced a correction of more than 20% after reaching its all-time high of $58,330 on February 21. Still, institutional investors continue to buy the largest digital currency.

Adam Back, co-founder and CEO of blockchain technologies provider Blockstream, warned those selling Bitcoin for under $50,000 in his February 24 post.

Commenting on Square’s recent Bitcoin investment of $170 million, Back stated:

Worth noting that Square bought in the last 7days. Either before $58k or after, or a mix of peak & dip buying average. Keep that in mind before selling BTC under $50k: both institutional and retail ETF buying up for cold storage.

Financial services giant Square announced on February 23 that it had purchased 3,318 Bitcoins worth $170 million. After this investment, the company invested 5% of its total reserve in Bitcoin.

The business intelligence giant MicroStrategy, which triggered the influx of institutional investors in the industry by investing $250 million in Bitcoin in August 2020, bought $1 billion worth of BTC on February 24  and raised its Bitcoin savings to over 90,000. MicroStrategy bought Bitcoin at an average of $52,765.

In the futures market, where $5.6 billion worth of contracts were liquidated in just two days after Bitcoin’s sudden price drop, investors seem unaffected by the correction. After the BTC price bottomed, many investors took a long position again.

Bitcoin, which has gained 3.5% in the last 24 hours, is trading at around $50.691 on Bitstamp as of the time of writing this article.

If you have any questions and comments on Bitcoin today, use the form below to reply.


© MarkStevenson for Commodity Blog, 2021. | Permalink | No comment |
Published under: Bitcoin

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