Periodic Updates on the Futures Markets

March canola is up $7.50 per metric ton (mt), March soybean oil is up .05 cents/pound, May European rapeseed is up 4.50 euro per mt and February Malaysian palm oil is up .45%. March oats are up 7 1/4 cents/bushel. February crude oil is down $.29 per barrel, February ULSD is down $.0302 per gallon, and the March Canadian dollar is down .00195 at .72720. The March U.S. Dollar Index is up .353 at 98.335 and the February Brazilian real is up .00115 at 0.18510.

Grain and oilseed markets are extending overnight gains thanks in part to optimism over China’s ongoing soybean purchases. Another 336,000 mt flash sale announcement was made ahead of the day session with rumors they are still buying helping prices as midday nears.

Canola was exceptionally strong in early trade with resistance at $620/mt (that was mentioned in the opening comments) already being tested (with the high of the day being $621.90/mt so far). Rumors suggest the Supreme Court will release its ruling on Trump’s tariffs Friday so that may be a psychological boost. Unlikely, but the timing was appropriate.

Corn and wheat are higher with the latter likely getting a boost from another heat wave (relatively speaking for January) expected later this week for the winter wheat areas of the U.S. That increases the risk of winterkill should a cold snap follow before meaningful snow cover is received.

In outside markets, Treasuries remain under pressure with the 30-year bond flirting with a downside breakout while equities have turned higher despite the increase in interest rates. Energy markets are mostly lower now with gasoline being the exception. The U.S. dollar has added to modest overnight gains with it again challenging its 25- and 100-day moving averages. Precious metals remain the clear winner with gold up another $45.50/ounce and silver up $4.078/ounce, setting its sights once again on a record high.