Periodic Updates on the Futures Markets

November canola is down $.20 per metric ton (mt), Dec soybean oil is down .25 cents per pound, November European rapeseed is up 4.50 euros per mt and December Malaysian palm oil is up .09%. Dec oats are up 2 1/4 cents per bushel. November crude oil is down $.54 per barrel, November ULSD is up $.0021 per gallon, and the December Canadian dollar is down .00295 at .71585. The December U.S. Dollar Index is up .555 at 99.195 and the October Brazilian real is down .00040 at 0.18535.

Grain and oilseed markets are drifting sideways amid a lack of fresh news, instead of preparing for the 11 a.m. WASDE update. According to the website, the “report will be suspended until further notice.” Prices had been firming up until midday but just recently began to soften with the only noticeable influence possibly being a strengthening U.S. dollar.

The November/January soybean spread has backed off slightly (down 1 1/4 cents) despite the PNW basis remaining much improved on the week. For Thursday, it’s corn’s turn to shine with the December/March spread putting in a strong showing. That and a minimally improved national basis suggests export sales are likely remaining strong despite no reporting due to the shutdown. It could also be a sign of disappointing yields; but in either case, it’s another clue confirming that the seasonal low does appear to have been set in early August.

Outside markets are somewhat mixed. Treasuries are still a little weaker ahead of the 30-year bond auction while equities have come under some pressure, likely due to profit-taking following another round of record highs being set overnight. Energy markets are mixed with crude oil lower but diesel quietly higher while the big move of the morning is found in the U.S. dollar. It is seeing exceptional buying interest with the potential double-bottom looking very good now, technically at least. The measured move for that would be 104.