Periodic Updates on the Futures Markets

January canola is down $0.90 per metric ton (mt), December soybean oil is down .16 cents per pound, February European rapeseed is up 6.75 euros per mt and December Malaysian palm oil is down .74%. December oats are up 1/2 cents per bushel. December crude oil is up $1.63 per barrel, December ULSD is up $.0545 per gallon, and the December Canadian dollar is up .00175 at .71700. The December U.S. Dollar Index is down .066 at 98.645 and the November Brazilian real is down .00010 at 0.18510.

Most grain and oilseed markets remain higher as midday approaches, with strong gains in energy markets likely taking the credit. A breakdown in talks between the U.S. and Russia and an escalation in attacks between Ukraine and the latter are likely responsible for the gains seen in energy markets. Word that the Trump Administration is planning on buying up to 3 million barrels of crude oil to help replenish the Strategic Petroleum Reserve surely helps. The odd part is that soybean oil and canola have been left out of the buying interest and remain the only ones left lower on the session. A continuation of the rally in soybean meal suggests oil/meal spreading may be to blame.

It likely is a good thing energy markets are providing a boost for ag markets, as U.S. Trade Representative Greer admitted early on that a meeting between Trump and Xi is still uncertain and dependent on the outcome of lower-level talks.   

Outside markets seem to be concerned about something developing in the U.S., with bonds, stocks and the U.S. dollar all down on the day now. Moves are minor, so it may be a coincidence as well. As mentioned, energy markets are sharply higher while gold remains lower in a continuation of its volatile trade (with a $150+/ounce range on the day so far).