Periodic Updates on the Futures Markets

January canola is down $1.10 per metric ton (mt), December soybean oil is down .28 cents per pound, February European rapeseed is down 1.50 euros per mt and December Malaysian palm oil is down 1.10%. December oats are up 1 1/2 cents per bushel. December crude oil is up $.50 per barrel, December ULSD is up $.0241 per gallon, and the December Canadian dollar is down .00145 at .71530. The December U.S. Dollar Index is up .036 at 98.765 and the November Brazilian real is down .00010 at 0.18535.

Grain and oilseed markets are mixed in quiet trade, with soybean oil retreating on spreading against soybean meal despite additional gains seen in the energy complex. That has just recently turned canola lower after it spent most of the morning in the green. Corn has given up part of Thursday’s gains while wheat remains firmer on the session.

Possibly weighing on corn is the limit lower moves seen in cattle markets on word that the Mexican ag minister will be discussing the possibility of the border being reopened with his U.S. counterpart. Feeder cattle prices gained over $30/cwt in early October when a case of New World screwworm was detected just 70 miles south of the U.S. border, resulting in expectations that it would be well into 2026 before the border reopened. Friday’s weakness adds to losses seen since President Trump announced he would be getting beef prices down for the consumer’s sake. Since the Oct. 16 surprising social suggestion, losses now total almost $35/cwt (or $280/head on an 800-pound animal). It’s worth noting that the increased tariff rate quota for imports of Argentine beef will likely have little lasting impact, given the 80,000 mt upper limit (from 20,000 mt previously) only amounts to 176 million pounds (even if Argentina has the spare beef to fill it) compared to the 28.6 billion pounds of beef that the U.S. consumes annually.

Outside markets are reacting to a slightly cooler-than-expected CPI report with both headline and core up 3.0% on an annual basis versus expectations of 3.1% for each. That has increased the odds of a third Federal Reserve quarter-point rate cut coming in January. With that, treasuries and currencies turned mixed while the equity markets rallied into new record high territory on improved prospects for lower interest rates. As mentioned, energy markets have firmed slightly through the morning.