Periodic Updates on the Futures Markets

March canola is up $10.50 per metric ton (mt), March soybean oil is up .57 cents/pound, May European rapeseed is up 11.75 euro per mt and February Malaysian palm oil is down .13%. March oats are up 4 1/2 cents/bushel. February crude oil is up $.81 per barrel, February ULSD is up $.0224 per gallon, and the March Canadian dollar is down .00100 at .72940. The March U.S. Dollar Index is down .088 at 98.070 and the February Brazilian real is up .00060 at 0.18365.

Grain and oilseed markets are sharply higher as it appears the first normal trading day of the new year is ushering in a strategy of buying commodities in general with added interest in precious metals and ag commodities. Soybeans are leading the charge with it very clear that the trade is not at all concerned about China cancelling soybean purchases over the Venezuelan situation. Corn is experiencing an outside reversal higher on the widespread buying interest despite mediocre export sales and as-expected export inspections reported earlier. Even wheat has joined in with strong gains of its own.

Soybean oil is higher with the low soybean oil yield discussed in the opening comments surely helping. At 11.46 pounds of soybean oil per bushel of soybeans (reported for November) compared to 11.86 pounds/bushel in November 2024, the annual production could end up being reduced by 500 million pounds (at least, based on current crush estimates of 2.555 billion bushels). That has certainly helped canola gain along with stronger energy markets.

In outside markets, Treasuries remain quietly higher while equities have added significantly to overnight gains. Energy markets are holding onto their gains, but the U.S. dollar has now turned lower. Given the $125.80/ounce rally currently seen in gold (and $6.085/ounce in silver on the day) and the weaker dollar, one might assume the greatest impact of the weekend events is a loss of confidence in the value of paper currencies in general. Potentially adding buying interest to anything that might hurt you if enough of it falls on you.