Periodic Updates on the Futures Markets

November canola is down $4.10 per metric ton (mt), Dec soybean oil is down .29 cents per pound, November European rapeseed is down 3.25 euros per mt and November Malaysian palm oil is down .20%. Dec oats are up 3/4 cents per bushel. October crude oil is down $.62 per barrel, October ULSD is down $.0313 per gallon, and the December Canadian dollar is up .00115 at .72900. The December U.S. Dollar Index is up .284 at 97.255 and the October Brazilian real is down .00070 at 0.18735.

No one stepped out ahead of time and suggested there would be anything positive to come out of the call Friday morning between President Trump and China’s Xi Jinping — and not a word about soybeans is exactly what was said according to early accounts — yet the oilseed markets fell on disappointment anyway. It appeared as though something may have triggered headline algorithms to buy while the call was taking place with a quick jump in prices seen across the grains and oilseeds. That didn’t hold with the soybean complex selling off on the lack of even a mention of the crop. It did sound like it was a positive meeting so that is helpful but there was nothing to suggest any soybean sales to China should be expected anytime soon.

Oddly enough, corn prices have remained higher with either concerns over early yield reports, harvest delays or another flash sale of 206,460 metric tons (mt) to unknown destinations Friday morning providing support.

Energy prices remain weak despite new sanctions being applied to Russia by the EU (with the many already in place having little impact on the flow of Russian oil) and recent attacks by Ukraine on Russian energy infrastructure.

Outside markets are continuing to reverse initial reactions to the headline news that the Fed expects to cut interest rates twice more this year following Wednesday’s expected quarter point cut. As mentioned, Powell’s hawkish-cut type of press conference following the decision suggested that the cut was simply maintenance and that they were in no rush to cut rates. With that still impacting trade, treasuries remain weak supporting a stronger U.S. dollar with overall weakness in commodities seen. Equity markets have chosen to ignore those factors so far, remaining in record territory.