DEC 14

[12/14] It was another tumbled day. Wide spread of COVID-19 and Inflations dragged down the global equity markets. DJ fell 0.3%, S&P downed 1.1% and NASDAQ 1.8% downed. US Producers Price Index showed big surge in Nov. PPI is the leading index of US economy and surged 9.6% in Nov. That’s the highest numbers since 2010 and strong signal of serious inflations are coming. USD up again and Crude oil downed. Brent oil futures fell 0.9% and settled at $73.70. So, money is moving out of risk assets and moving into more safe heavens. In Ag market, it was big inverse day from yesterday’s down market. Soybean, meal and corn market recovered but soybean oil and wheat market downed. Nothing really big pivot points these days, just a lot of intermarket spreading and technical buying and selling, Strong boxed movements. At least, rest of the year, this kind of movements would be continued. Argentine and Brazil, both countries received good rains last night but still, Rio Grande Sol is dry, no rains. Christmas and end of the year season is approaching, and those fund guys are busy to calculate how much they can get for the bonus. That means, they are exiting from their positions. It could be good chance to cover positions for the hedgers while those speculators are exiting fast. Remember, so far, it’ll be big supplies everywhere.

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