[01/20] US main equity indexes ended sharply lower today. DJ fell 0.89%, S&P fell 1.1% and NASDAQ downed 1.3%. Seems like, stockholders are losing their confidence to the market in this week. Weekly jobless claim numbers increased a lot, from 55K to 286K people. If you look at continuing Jobless claim numbers, 84K people increased in a week period, put the total number as 1.6M people. Still, it’s much better situation than a year ago but recent trend shows quite fast increscent. OMICRON variant is hurting US labor market deep again but even all these facts, FED hardliners will take actions as tapering faster and raise the interest rates before Mar anyway. Interesting thing is that Chinese Central Bank is lowering their rate this time. Of course, China needs more money into their market. They can’t stop injecting money for their hard running train, otherwise, whole railways could collapse. Understandable decision and who would’ve known the end anyway? US and other Western countries will raise their interest rate soon and Chinese are lowering their rate now. Money is always flowing to higher margins from lower side. It’d be interesting to see the progress in a few months later. Crude oil price was changing its direction at the very end of the day. Brent oil futures has been up all day long and highest price was $89.51 per barrel but ended at $87.24, 1.4% lower than yesterday. Pure technical sell off for the profit move for today’s excuse only. However, Brent oil futures price will try to be over $90 level sometime next week. Russians and Ukraine’s Orthodox Christmas holiday is ending tomorrow and many people are betting on Russian’s move after its holiday.
In Ag market, Soybean group led the surge again. Based on Chicago Futures market, Soybean was up 2.5%, meal was up 0.6% and soybean oil was up 3.5%. Wheat market retreated a bit with some technical selling and corn didn’t really move. Chinese were quiet. Argentine is receiving good rains this week but nothing for Southern Brazil and Paraguay, which losing crops a lot in daily bases. South American farmers are not selling their soybean cash crops at all so basis are going up rocket high every day. Indonesian government is very active on testing their Nationwide Bio diesel project this year and possibly heavy controlling over export business of palm oil. With Malaysia’s lower production numbers, all these factors are pushing palm oil price to the new high levels and other vegetable oils are just following palm oil’s price surge. One thing for sure now, current drought on South American continent changed everything. Looks like, another uprising hell bound is starting in 2022.
