DEC 17

[12/17] OMICRON confirmed cases have been doubled in this week at Denmark, UK. UK’s COVID19 confirmed cases have been the largest ever, hit more than 90K people in a day. UK and other European countries will announce new restrictions soon. That caused a new kind of fear to the market and remember, some countries including US, have started tapering their stimulus programs. That means, most of governances of the world are running out of money to sustain the healthy economy. That’s more scary part than OMICRON numbers honestly. USD Index raise 0.7% today. Investors are retreating fast from those riskier currencies, definitely Turkish Lira is one of them. USD will be once more, buying currencies. DJ fell 1.48%, S&P fell 1.03% and NASDAQ downed 0.07%, money is exiting from the riskier assets, but you have to aware that today’s the one of those FOUR WITCHES DAY. Crude oil market is falling fast as well. Brent oil futures downed more than 2%, ended the week at $73.52, back under $75 level once again. Big wide spread of OMICRON put the market into new fears, another big shrink of the energy demand. It doesn’t look so good. Completely opposite of last Christmas season, if you can recall. In Ag market, another recovering day, except soybean oil. Two factors are driving bullish Ag market this week. The first one is BRAZILIAN DRYNESS, not whole country, Southern part of Brazil, is getting serious. It will not be any rain for another two more weeks, at least. Argentine guys might have some more time and they’ve received some beneficial rains recently. People were talking about possible 150M MT of soybeans next Spring from Brazil but not anymore, they’re now talking about early 140M MT of soybeans and even under 140M MT. That’s big difference from a month ago. For Brazilian summer corn, it was 29.5M MT a few weeks ago but in this week, those numbers decreased to 28.3M MT. That’s big change. Another market driven factor is Chinese buying. This time, not Soybean, other feed grains. Chinese are buying French wheat, Ukraine corn and Australian wheats regardless of what their price level are. MATIF futures market is keep rising because of Chinese buying. Ukraine farmers are not selling their new crops again, raising up their cash market price. Those two factors are main market driven factors of this week and that pushed the market up a lot higher. COVID-19 is getting serious again please have a safe weekend, everyone.