[12/02] It was turn around Thursday. Worlds need time to respond what to do about OMICRON. Most of equity markets and commodity markets were bounced back a bit today. DJ up 2.02%, S&P up 1.64% and NASDAQ up 0.83%. Nothing changed anything today, but world just need some space to breathe. Brent oil have recovered a bit, 0.4% up but could not recovered into $70 per barrel ranges. OPEC members had a meeting and agreed on keep the same production numbers in Jan as Dec. They worry about OMICRON but they think it’s over done. US have 140K of COVID19 confirmed cases today, last week was around 60~70K per day, so it’s been almost doubled in a week. Confirmed cases will be up for a while because of Thanksgiving travels and look, Christmas and new year’s holiday season is coming soon. Biden and FED, Mr. Powell, seems like, they fully agreed on one thing. That’s the controlling of inflation. Raising the interest rate and stop buying bonds will be in place much quicker than people are expecting at the moment. Remember, year 2021 is Biden’s first year as the president but already people got tired of him. He needs a kind of kick. In Ag market, it was turn around Thursday as other financial and commodities. Everything has surged today except soybean meal. Wheat has been raised up in double digit. That’s based on Russian guys. Russians might halt their wheat export program totally in the last half of year 2022. Why are they saying this now? We are still in 2021. Remember! Chinese need about 40M MT of wheat to restore their silos. Some people don’t want to see lower wheat price for sure. Chinese are buying more and more beans this week. Last night, they have covered about 4 cargos of US Gulf beans, 1 cargo from PNW and 3 cargos out of Brazil and it’s obvious that they are covering futures position in this OMICRON breaks. Similar patterns appeared in corn market. Strong buying pushed the grain and oilseeds market price to the north today and this kind of movement could continue for now. Any price breaks, end users will cover their needed positions, regardless of what. Look, Koreans are buying huge corn and meals now.
