Macroeconomics

1. [Reverse Repurchase Agreement] The People's Bank of China (PBOC) announced a tender notice for outright reverse repurchase agreements in the open market. To maintain ample liquidity in the banking system, on December 5, 2025, it will conduct 1 trillion RMB/ton of outright reverse repurchase operations through a fixed-quantity, interest rate, and multiple-price bidding method, with a term of 3 months (91 days).

2. [US Initial Jobless Claims] Initial jobless claims in the US unexpectedly fell to 191,000 last week, the lowest level since September 2022, indicating continued resilience in the job market.

3. [Bank of Japan] The Bank of Japan is almost certain to raise its policy rate from 0.5% to 0.75% at its December meeting, and the Japanese government is expected to tolerate this move. This would be the PBOC's first rate hike since January of this year.

4. [Shipping] This year, the average daily cost on major global crude oil shipping routes has seen the largest increase, reaching 467%, while transportation rates for commodities such as liquefied natural gas (LNG) and iron ore have increased more than fourfold and more than twofold, respectively.

Agricultural and Sideline

1. [White Sugar] On December 4th, the ex-factory price of new sugar in Yunnan was lowered to 5220-5250 RMB/ton, a decrease of 40-50 RMB/ton compared to the price quoted on the 3rd. As of December 4th, 2025, more than 13 sugar mills in Yunnan Province had started crushing for the 2025/26 crushing season.

2. [Soybean Meal] The USDA's supplementary weekly export sales report showed that for the week ending October 30th, 2025, net sales of US soybean meal for the 2025/26 marketing year were 219,830 tons, compared to 640,021 tons the previous week.

3. [Soybean Oil] According to forecasts from foreign media surveys, for the week ending October 30th, 2025, net export sales of US soybean oil for the 2025/26 marketing year are expected to be 5,000-25,000 tons.

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