Periodic Updates on the Futures Markets

January canola is down $6.20 per metric ton (mt), March canola is down $6.30 per metric ton (mt), March soybean oil is up .08 cents/pound, February European rapeseed is up 3.25 euro per mt and February Malaysian palm oil is down .25%. March oats are down 3 1/2 cents/bushel. February crude oil is up $1.31 per barrel, February ULSD is up $.0348 per gallon, and the March Canadian dollar is down .00065 at .73340. The March U.S. Dollar Index is up .092 at 97.790 and the January Brazilian real is down .00100 at 0.17920.

Grain and oilseed markets remain under pressure with losses mounting for most as midday nears, despite strong gains seen overnight in China’s corn and soybean markets. That may be due to increased tensions arising from weekend live-fire exercises that China performed around Taiwan. The market appears to be taking it as a potential trade irritant with China’s row crop prices rising while the U.S. counterparts fall.

Soybean oil is the one exception with it holding onto small gains likely due to a rally in energy markets on rising geopolitical tensions. Not only did the Sunday meeting between Presidents Trump and Zelensky fail to advance peace talks, but Russian Foreign Minister Lavrov has also just claimed that Ukraine tried to attack one of Putin’s residences. President Zelensky has adamantly denied the accusation, suggesting Russia is just using the claims as an excuse to invade Kyiv by ground. If that wasn’t enough, President Trump just announced that the U.S. struck a “big facility” in Venezuela with no explanation of what that means.

Possibly due to all of that, treasuries and the U.S. dollar remain quietly higher on a flight-to-safety type of trade while equity markets continue to weaken further. The selloff in precious metals is stealing the show with gold down as much as $236/ounce on the low of the session and silver working on a key reversal lower after gapping higher Sunday evening. With silver having a $12.42/ounce range on the day compared to a total value of $27.54/ounce as recently as April, it is likely a cause for concern for all commodity traders.