MAY 27. Shanghai Re-open + Crude oil price rise + Grain Price surge…

Chun09
3 min readMay 27, 2022
Shanghai will reopen next week, what about Beijing and other cities?

Global stock markets extended their rallies today with Shanghai re-open news and peaked inflation possibilities.

Shanghai’s re-open after the two months of COVID lockdowns would be slow and will take a long time to back to normal days but it looks like the Chinese government is going to do on June 1st.

DJ INDEX CHART (MAY 23~MAY 27)

There are some actual numbers from various sources showing that US inflations might be peaked in May and will be slowed down in later months. House sales are falling fast and Retail stores’ inventories are growing fast. So, could it be called the peak of the high inflations or the start of the stagflation? Not so sure at the moment, but today’s stock market understands this as a positive signal.

DJ went up 1.1%, S&P 500 was up 1.7% and NASDAQ was up 2.6% today. Mega tech stocks were leading today’s surge, as usual, Apple was up 3.5%, MS was up 2.1%, Amazon was up 2.7% and Tesla was up 7.1%.

US Dollar Index was down once more, falling 0.2%, ending at 101.66 points.

US DOLLAR INDEX

The crude market was up another 1.7%, ending at $119.25 per barrel today.

As of today, the crude oil penetrated the strong resistance level so easily. Strong fuel demand, a fast decrease in fuel inventory level, and the Chinese could come back to the crude market anytime soon.

Brent oil futures Chart

Simple factors but very strong factors to the market.

In the agricultural market today, based on the Chicago futures market, mostly went up, except for soybean oil.

Chinese wanted to buy more Brazilian soybeans and corn (China still has not registered all GMO events from Brazilian corn ) but couldn’t find any more cash offers for now.

The strong cash market leads the strong futures market today.

Russians are winning in Ukraine at the moment and they will block the grain export more to press the US and other countries who need to lower the inflations desperately. That’s the scary point.

Chicago Futures Market Grain & Oilseeds

So, what would happen in the agricultural market in June? Agricultural prices will go up further.

Monday is the memorial day in the US and there is no market.

Have a good long weekend and enjoy life today, let’s not hope for a better tomorrow.

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Chun09

Trying every day, engraving what we’ve been through