Macroeconomics

1. [Monetary Policy] The central bank governor stated that in 2026, they will continue to implement a moderately loose monetary policy, flexibly and efficiently utilizing various monetary policy tools such as reserve requirement ratio reductions and interest rate cuts to maintain ample liquidity. There is still some room for further reserve requirement ratio reductions and interest rate cuts this year. They will continue to maintain the stable operation of the financial market. They will manage expectations effectively and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. Supervision and management of the bond market, foreign exchange market, money market, bill market, and gold market will be strengthened. A mechanism will be established to provide liquidity to non-bank institutions under specific circumstances. The two monetary policy tools supporting the capital market will continue to be utilized to support the stable development of the capital market.

2. [Consumer Loan Interest Subsidy Policy] The six major state-owned banks collectively announced the implementation of the government's interest subsidy policy for personal consumer loans and the optimization of related services. During the implementation period of the consumer loan interest subsidy policy, some high-quality customers will enjoy an actual interest rate in the "2%" range after receiving the subsidy. This level is even lower than the current interest rate on newly issued housing loans.

3. [US Initial Jobless Claims] The number of initial jobless claims in the US increased by 200,000 last week, compared to an estimated 209,000 and a previous figure of 198,000. Continuing jobless claims slightly decreased to 1.85 million, a decrease of 26,000 from the previous week.

4. [Bank of Japan] The Bank of Japan will conclude its two-day monetary policy meeting on January 23rd. The market generally expects the bank to maintain its policy interest rate at 0.75%. However, analysts warn that given the weak yen and persistent domestic inflation, the Bank of Japan may adopt a hawkish stance.

5. [South Korean Exports] According to the Korea Customs Service, South Korea's total exports from January 1st to 20th reached US$36.4 billion, a year-on-year increase of 14.9%. South Korean semiconductor exports increased by 70.2%, leading the overall export growth and accounting for 29.5% of total exports, a year-on-year increase of 9.6 percentage points.

Agricultural Products

1. [Sugar] As of January 1, 2026, the total sugarcane crushing volume in the South-Central region of Brazil was 600.4 million tons, a decrease of 2.28% compared to 614 million tons in the same period of the previous crushing season. The cumulative sugar production in the South-Central region reached 40.222 million tons, a slight increase of 0.86% year-on-year.

2. [Corn] ANEC stated that Brazil's corn exports in January 2026 will reach 3.45 million tons, higher than the 3.27 million tons estimated a week earlier, and an 8.3% increase compared to 3.185 million tons in the same period last year.

3. [Soybeans] ANEC stated that Brazil's soybean exports in January 2026 are estimated at 3.79 million tons, higher than the 3.73 million tons estimated a week earlier. If the estimate is realized, it will be a 238% increase compared to 1.12 million tons in the same period last year, setting a historical record for the same period.

4. [Soybean Meal] The Brazilian National Association of Grain Exporters (ANEC) stated that Brazil's soybean meal exports in January 2026 will reach 1.82 million tons, the same as the estimate a week earlier, and also higher than the 1.644 million tons in January 2025. 5. [Palm Oil] Data from the Southern Peninsula Palm Oil Millers' Association (SPPOMMA) shows that from January 1-20, 2026, palm oil production in Southern Malaysia decreased by 16.06% compared to the previous period.  Fresh fruit bunch yield decreased by 16.49%, while the oil extraction rate (OER) increased by 0.08%.

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