Periodic Updates on the Futures Markets

January canola is up $7.30 per metric ton (mt), December soybean oil is up 1.06 cents per pound, February European rapeseed is up 2.50 euros per mt and December Malaysian palm oil is down .11%. December oats are up 3 1/4 cents per bushel. December crude oil is up $3.45 per barrel, December ULSD is up $.1460 per gallon, and the December Canadian dollar is down .00060 at .71615. The December U.S. Dollar Index is up .137 at 98.810 and the November Brazilian real is up .00050 at 0.18520.

Soybean oil continues to make new highs on the day, with strong gains in energy markets providing the incentive. Ultra-low sulphur diesel remains the strongest member of the energy complex, being up 12.5% from Monday’s low. Unexpected and stiff sanctions imposed by the U.S. on top Russian oil firms Rosneft and Lukoil take the credit following the meeting between Presidents Trump and Putin officially being called off on Wednesday. Gains have provided support for canola throughout the morning.

Row crops have benefited as well amid concerns over yield and optimism over export interest. All of which cannot be confirmed due to the shutdown. Even wheat is strong, with fund short covering likely kicking in, given the limited downside potential.

Outside markets are still reacting to the inflationary surprise of the sharp gains in energy prices, with treasury markets testing the lows of the session while the U.S. dollar remains higher. Equity markets have yet to show any concern with prices turning higher by midday. The volatile gold market is almost $100/ounce higher as the market tries to stabilize itself over $4,000/ounce.