Periodic Updates on the Futures Markets

January canola is down $2.70 per metric ton (mt), Dec soybean oil is down .47 cents per pound, February European rapeseed is up .50 euros per mt and December Malaysian palm oil is up .21%. Dec oats are down 5 cents per bushel. December crude oil is up $.10 per barrel, December ULSD is up $.0130 per gallon, and the December Canadian dollar is down .00230 at .71710. The December U.S. Dollar Index is up .343 at 99.365 and the November Brazilian real is down .00080 at 0.18570.

A volatile reaction to the meeting between presidents Trump and Xi was what market participants expected, and it certainly was what they ended up with. After breaking overnight on the lack of details about China’s soybean purchase plans, prices roared back when Treasury Secretary Bessent provided them. The wording is still being debated but China is expected to buy 12 mmt of soybeans by the end of January. They have also agreed to purchase at least 25 mmt per year for three years. It’s not completely clear on the timing of the commitments or shipments. Regardless, soybeans rallied almost $.40/bushel on the details with the rally coming right off the top of the breakaway gap that remained from Sunday evening (following the weekend news of progress being made). Following an early dip on confusion over the wording, prices have firmed back up closer to the highs.

The remaining grains and oilseeds (other than soybeans and soybean meal) are lower at midday, seemingly content with being observers amid the lack of other data backed news.

Cattle markets have added to Wednesday’s gains following a dip in early trade.

Outside markets are little changed from overnight reactions to the defiant and hawkish press conference by Fed Chair Jerome Powell. Treasuries remain down on the day, equities continue to sell off, and the U.S. dollar is maintaining gains. Energy markets have turned mixed ahead of the weekend OPEC+ meeting.