Periodic Updates on the Futures Markets

January canola is down $3.40 per metric ton (mt), March canola is down $4.10 per metric ton (mt), March soybean oil is up .15 cents/pound, February European rapeseed is up 3.50 euro per mt and January Malaysian palm oil is up .64%. March oats are down 4 1/2 cents/bushel. January crude oil is down $.12 per barrel, January ULSD is up $.0159 per gallon, and the December Canadian dollar is up .00050 at .72290. The December U.S. Dollar Index is down .193 at 99.005 and the December Brazilian real is down .00105 at 0.18190.

As suggested in the opening comments, the close looks like it could be quite interesting for soybeans. After trading below $10.85/bushel support overnight, prices are now higher on the day thanks in part to another 467,000 mt of flash sales announcements to China and unknown destinations (likely China). The price break since the open on Dec. 1 slightly exceeded $.60/bushel in a short period of time with the improved rainfall in Brazil the only fundamental change. With the head-and-shoulders top formation target almost reached (at $10.70/bushel) and the market oversold in the short-term, a close higher on the day and back over support would be positive.

In the meantime, soybean oil has given up most of its gains on the day as diesel markets did the same while canola has reversed lower, giving back part of Tuesday’s gains. Corn has also retreated with wheat leading the grains lower.

In outside markets, Treasuries are higher while equities have turned mixed ahead of the Federal Reserve interest rate decision. The pullback in interest rates has weighed on the U.S. dollar going into the announcement and press conference to follow.