Periodic Updates on the Futures Markets

January canola is up $1.60 per metric ton (mt), March canola is up $2.20 per metric ton (mt), March soybean oil is down .52 cents/pound, February European rapeseed is up 2.50 euro per mt and January Malaysian palm oil is down .67%. March oats are down 1 1/2 cents/bushel. January crude oil is down $1.24 per barrel, January ULSD is down $.0620 per gallon, and the December Canadian dollar is up .00210 at .72640. The December U.S. Dollar Index is down .588 at 98.180 and the December Brazilian real is up .00280 at 0.18435.

Grain and oilseed markets remain quietly higher for the most part as the unexpected easing by the Fed (adding $40 billion in cash per month to the financial system through T-bill purchases through April) combined with the expected cut in the overnight interest rate to weigh on the U.S. dollar and increase inflation concerns. Metal markets are sharply higher on the developments with meats gaining as well. Energy markets are the exception with sharply lower values remaining there as traders expect President Trump’s efforts will result in increased Russian oil supplies being available sooner rather than later.

Another round of export sales flash announcements is helping support ag markets with 490,000 metric tons (mt) of soybeans sold to China and Unknown (likely China) and 186,000 mt of corn sold to Unknown. That follows another stellar weekly export sales report (for the week ending Nov. 13) that had 2.38 million metric tons (mmt) net sales of corn. Total export commitments for corn stood at 1.603 billion bushels (bb) at just 10 weeks into the marketing year. Up 30% from last year and 15.5% from the previous record and well ahead of the revised 12% annual increase that USDA expects.

In remaining outside markets, treasuries are higher while equities are mixed on the Federal Reserve developments.