THE INVESTMENT APPROACH OF CALVIN TAN

CALVIN TAN: CANOLA OIL UP WILL SUPPORT PALM OIL EVEN OTHERS FELL: Equities, oil prices, US Treasury yields all drop on Covid-19 variant fears

calvintaneng
Publish date: Sat, 27 Nov 2021, 11:26 AM
calvintaneng
0 1,683
Hi Guys,

I have An Investment Approach I which I would like to all.

Hi guys

MARKET CRASHED IN EVERYTHING EXCEPT CANOLA OIL IS UP

 

First see the bad news

Equities, oil prices, US Treasury yields all drop on Covid-19 variant fears

Author:    |    Publish date: 

 

 


 

WASHINGTON/LONDON: Shares tumbled on Wall Street on Friday as they reopened after Thanksgiving, while European stocks saw their biggest sell-off in 17 months and oil prices plunged by $10 per barrel as fears over a new coronavirus variant sent investors scurrying to safe-haven assets.
 
The World Health Organization (WHO) on Friday designated a new COVID-19 variant detected in South Africa with a large number of mutations as being "of concern," the fifth variant to be given the designation.
 
Unofficially, the Dow Jones Industrial Average closed down 2.53% at 34,899.34 in its largest percentage drop in more than a year. The S&P 500 lost 2.27%, its worst one-day drop since Feb. 25, and the Nasdaq Composite dropped 2.23%, the biggest one-day route in two months.
 
U.S. markets closed early on Friday after being shut all day on Thursday for the Thanksgiving holiday.
 
The benchmark STOXX 600 index ended 3.7% lower on the day, leaving it down 4.5% for the week. The volatility gauge for the main stock market hit its highest in nearly 10 months.
 
Companies that had benefited from an easing of COVID-related restrictions this year, including AMC Entertainment, plane engine maker Rolls Royce, easyJet, United Airlines and Carnival Corp all fell.
 
Retailers dropped as Black Friday, the start of the holiday shopping season, kicked off as the new variant fuelled concerns about low store traffic and inventory issues.
 
In Europe, the travel and leisure index plummeted 8.8% in its worst day since the COVID-19 shock sell-off in March 2020.
 
"Bottom line is this is showing that COVID is still the investor narrative, a lot of today’s movement is driven by the South African variant," said Greg Bassuk, chief executive officer of AXS Investments in Port Chester, New York.
 
"We have been talking about four or five factors that have been driving the last couple of months' activity – inflation fears, some economic data, Fed policy – but what we have seen over the last year is that big developments with respect to COVID really have ended up eclipsing some of those other factors by a substantial degree and that is what is driving today’s market activity."
 
Little is known of the variant detected in South Africa, Botswana and Hong Kong, but scientists said it has an unusual combination of mutations and may be able to evade immune responses or make the virus more transmissible.
 
Britain said the new variant was the most significant variant to date and was one of several countries to impose travel restrictions on southern Africa.
 
The European Commission also said it wanted to consider suspending travel from countries where the new variant has been identified, though the WHO cautioned against hastily imposing such restrictions.
 
Global shares fell 1.81%, their biggest down day in more than a year. France's CAC 40 shed 4.8%. The UK's FTSE 100 dropped 3.6%, while Germany's DAX fell 4.2% and Spain's IBEX lost 5.0%.
 
Malaysian rubber glove maker Supermax, which soared 1500% during the first wave of the pandemic, leapt 15%.
 
MSCI's index of Asian shares outside Japan dropped 2.44%, its sharpest fall since late July.
 
In commodities, oil prices plunged. Gold prices reversed earlier gains seen amid the move away from riskier assets.
 
U.S. crude was last down 12%, at $69.02 per barrel by 1:21 p.m. EST (1812 GMT). Brent crude dropped 10.5% to $73.59.
 
Spot gold prices were down 0.09%.
 
As investors dashed for safe-haven assets, the Japanese yen strengthened 1.87% versus the greenback, while sterling was last trading at $1.3331, up 0.08% on the day.
 
The dollar index fell 0.757%, with the euro up 1% to $1.1318.
 
U.S. Treasury debt yields posted their sharpest drop since the pandemic began. Treasuries benchmark 10-year notes last rose to yield 1.4867%. The 2-year note last rose to yield 0.4941%, from 0.644%.
 
"A flight to safety is underway with the 10-year U.S. Treasury yield down," said Keith Lerner, co-chief investment officer at Truist Advisory Services. "The proximate cause of the sell-off is yesterday’s announcement of a new COVID-19 variant in South Africa, which investors fear could weigh on economic growth."
 
The market swings come against a backdrop of already growing concern about COVID-19 outbreaks driving restrictions on movement and activity in Europe and beyond.
 
Markets had previously been upbeat about the strength of economic recovery, despite growing inflation fears.
 
 
 - Reuters
 
NOW WHY CANOLA OIL PRICES UP?
 
See
 
200300400500600700800900100011001200
1990199520002005201020152020
1039.8
 
Canola (CAD/T) 1039.80  +7.9 (+0.77%)
 


  Price     Day Month Year
Soybeans 1,253.00   -12.7500 -1.01% 1.11% 5.21%
Wheat 830.00   -11.2500 -1.34% 9.25% 39.15%
Lumber 769.50   -22.00 -2.78% 22.14% 21.97%
Cheese 1.75   -0.0010 -0.06% -1.41% -28.12%
Palm Oil 4,849.00   -78.00 -1.58% -2.36% 45.27%
Milk 17.95   0.01 0.06% 0.50% -22.33%
Cocoa 2,340.00   -116.00 -4.72% -10.10% -22.90%
Cotton 116.60   -3.78 -3.14% 5.50% 63.01%
Rubber 226.60   -9.80 -4.15% 4.18% -6.56%
Orange Juice 124.20   -4.25 -3.31% 1.47% -3.50%
Coffee 245.45   -0.85 -0.35% 21.90% 105.57%
Oat 755.00   4.5000 0.60% 6.19% 165.38%
Wool 1,341.00   0 0% 0.07% 16.61%
Rice 14.29   -0.1700 -1.18% 7.48% 12.74%
Canola 1,039.80   6.40 0.62% 5.75% 78.35%
Sugar 19.40   -0.53 -2.66% -1.52% 30.90%
Tea 3.06   0 0% -0.97% 12.92%
Corn 586.25   7.0000 1.21% 5.20% 37.78%

 

SO WHY CANOLA OIL UP WILL SUPPORT PALM OIL CPO PRICES?

 

ANSWER NUMBER ONE

DROUGHT IN CANADA DRASTICALLY REDUCED CANOLA CROPS THIS YEAR 2021

 

See

Drought shrinks Canada's wheat crop to 14-year low, shrivels canola harvest

WINNIPEG -- Drought has shriveled Canada's wheat crop to its smallest in 14 years, and its canola harvest to a nine-year low, a government report showed on Monday.

Parched soils and record-hot temperatures in Canada's western crop belt sharply reduced farm yields of one of the world's biggest wheat-exporting countries and largest canola-growing nation. The drought has forced millers and bakers to pay more for spring wheat, and drove canola prices to record highs.

 

After the Drought is FLOOD

Flooding and landslides in British Columbia: Measuring the costs

November 25, 2021, 2:00 p.m. (EST)
A container ship passing under Lion's Gate Bridge, Vancouver

For those caught in their wake, the recent flooding and landslides in British Columbia have been devastating; disrupting lives, affecting farms and businesses, and damaging or destroying homes.

Although the damage is limited to a few communities in Canada’s westernmost province, the effects of this storm will be felt throughout the country and beyond. 

British Columbia is Canada’s gateway to the Pacific and the world beyond, with billions of dollars of goods arriving and shipping out of the ports of Vancouver and Prince Rupert every month. In fact, just over one-fifth (21%) of the total value of Canada’s merchandise trade was shipped by sea in 2020, with approximately one-third going through West Coast ports.

Key rail lines and roads that service British Columbia ports are now severed or severely compromised, and as a result, West Coast trade has almost ground to a halt.

On average, almost 20 million tonnes of freight are loaded on trains in Western Canada every month, with most of the commodities destined for the Port of Vancouver and then exported overseas.

West Coast ports are critical for the export of several key commodities, especially agricultural products. Over the first nine months of 2021, 99.1% of Canada’s total canola shipments (6.7 million tonnes) passed through British Columbia ports, along with 98.0% of the potash (17.4 million tonnes), 97.0% of the wheat (18.9 million tonnes), and 96.6% of the coal (26.0 million tonnes).

This is yet another blow to prairie grain farmers, who faced drought conditions in the early summer that are expected to bring wheat and canola production down by over one-third from 2020, with canola production expected to fall to its lowest levels in a decade.

The top goods imported through British Columbia ports include clothing, footwear and accessories, iron and steel products, refined energy products, and passenger cars and light trucks. Some of these goods are carried in a container on flat car and shipped to consumers in Eastern Canada. On average, about 4,000 containers on flat cars carry goods across Western Canada each day, with many transporting consumer goods to Eastern Canadian markets from West Coast ports.

The November flooding was not the first rail disruption to hit Western Canada this year. In July 2021, wildfires in the interior of British Columbia damaged rail lines, leading to delays in shipments, especially of grains. Although shipments were delayed for less than one week, the stoppage contributed to the first notable year-over-year decline in rail volumes in eight months, bringing the overall volume of freight down to its lowest level for July in five years.

The situation is compounded by the fact that the Port of Vancouver was already struggling with supply chain challenges, including for example, an imbalance of shipping containers. Vessel operators are encouraged to contribute to overall supply chain consistency by arriving within a specific berth window at the Port. As of Friday, November 19, 2021, there were 20 vessels waiting for deliveries in the Port of Vancouver, and this congestion will likely result in longer average terminal dwell times.

Supply shortages can lead to higher prices, and the Consumer Price Index was up 4.7% year over year in October, the largest year-over-year price increase in almost two decades.

The full economic toll of the flooding and landslides will be better understood with the release of November and December rail and trade data early in the new year.

 

SO THAT IS THE CAUSE

 

AFTER DROUGHT NOW FLOOD HAS DISRUPTED EXPORT OF CANOLA FROM CANADA - LEADING TO SHORTFALL ON WOLD MARKETS & VERY HIGH PRICES

 

AS PALM OIL, SOYOIL & CANOLA OIL ARE INTER-RELATED THEY GO UP TOGETHER

 

SO CANOLA OIL UP PALM OIL CPO WILL BE UP AS WELL

 

Warm regards

Calvin Tan

 

Please buy or sell after doing your own due diligence or consult your remisier/fund manager

 

Palm oil up because Canola Oil is Up due to Flooding in Canada disrupt exports


https://www.youtube.com/watch?v=90pkDg0N9q4

 

 

 

 

 

Discussions
Be the first to like this. Showing 1 of 1 comments

stockraider

Keep your palmoil stock for your stable financial health mah!

2021-11-27 12:27

Post a Comment