Periodic Updates on the Futures Markets

January canola is down $4.90 per metric ton (mt), March canola is down $4.90 per metric ton (mt), March soybean oil is down .43 cents/pound, February European rapeseed is down 4.75 euro per mt and February Malaysian palm oil is unchanged. March oats are up 8 1/2 cents/bushel. February crude oil is up $.49 per barrel, February ULSD is down $.0052 per gallon, and the December Canadian dollar is up .00115 at .72935. The March U.S. Dollar Index is up .028 at 98.030 and the January Brazilian real is up .00020 at 0.18095.

Corn is leading the way higher Thursday for grain markets following another impressive week of export sales reporting, even if it is still outdated due to the shutdown (for the week ended Nov. 27). Likely the greater reason is reports that China has purchased seven cargoes of U.S. corn out the PNW — as I have suggested may be coming based on their strong corn market (due to poor harvest weather) and the strong basis levels for winter delivery out of the PNW. That has helped wheat given the low premium to corn already.

Despite that, and another 114,000 mt soybean flash sale announcement (to unknown destinations, most likely China), the oilseed complex still has few friends. Prices continue to drift lower, trying to find buying interest. Weaker diesel futures are not helping despite crude oil being higher.

In outside markets, Treasuries have rallied on a much cooler-than-expected November CPI print that has reduced inflation concerns. The resulting lower interest rates inspired a sharp rally in equity markets and a pullback in the U.S. dollar with it giving back nearly all its early gains. It’s worth noting that analysts are skeptical of the sizeable CPI miss with it appearing as though the government shutdown related delays may have left some inconsistencies.