Futures dossier: Black Friday for equities, investors give up everything | Company






Breitinger


Fears of rising interest rates and global recessions fueled continued panic selling in stocks, bonds, notes and virtually every currency. The US dollar was the exception. Many blamed the crash on the greenback since US investments are valued in dollars; as the US dollar goes up, everything else goes down. The recent massive declines have erased the swings of the past two years and broken the lows since the COVID-19 recovery. The December S&P traded at 3,675, with the December Dow Jones futures contract at 29,430. Ten-year notes for December delivery came in at 112.24, with the December euro at 0.9740 .

Commodities tumble as dollar soars

The fall in the stock market was accompanied by a severe sell-off in most commodity groups. Commodities that are generally exported led the way lower. Cotton, Rough, and Timber were the first to fall, and they have fallen furiously since being sent overseas. Recession fears hit fuels, clothing and housing more than food and grains; these are often the first products people stop buying during a recession. No one wanted gold or silver this week either. Crude oil for December delivery returned $78.10 a barrel. December cotton fell to 92.54 a pound. November lumber cost $433 per 110,000 board feet. December gold was trading at $1,652 an ounce.

Putin sends more troops to Ukraine

Russian President Vladimir Putin mobilizes 300,000 additional troops to invade Ukraine. This action, threats to use nuclear strikes and his announcement to hold elections in Russian-occupied areas are seen by world leaders, especially President Joseph Biden, as a desperate attempt to regain authority and power. leading a war that Russia is losing. Russian citizens are protesting, especially young people, and increasing numbers of Russians are fleeing the country to avoid complicity. “Ukrainian war goods”, such as wheat, vegetable oils and natural gas, were extremely volatile, but received more downward pressure than support from wartime developments, weather concerns or fears of climate change. inflation that often stimulates purchases. Wheat for December delivery was $8.77 a bushel, while December soybean oil traded at $63.75 a pound, December corn at $6.75. November natural gas futures yielded $7 per 10,000 mmBtu.

Commodity Questionnaire

Which of the following are considered goods? Bitcoin, NASDAQ, Rice, Silver, Japanese Yen, Natural Gas, Mercury, Turkeys, Treasuries.

Opinions are solely those of the author. Walt Breitinger is a commodity futures broker in Valparaiso, Ind. He can be reached at (800) 411-3888 or www.indianafutures.com. This is not a solicitation of a market order to buy or sell.

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