Periodic Updates on the Futures Markets

January canola is up $1.50 per metric ton (mt), Dec soybean oil is up .18 cents per pound, February European rapeseed is up .50 euro per mt and December Malaysian palm oil is up .34%. Dec oats are down 3/4 cents per bushel. December crude oil is down $.64 per barrel, December ULSD is down $.0035 per gallon, and the December Canadian dollar is down .00045 at .71020. The December U.S. Dollar Index is down .005 at 100.065 and the December Brazilian real is up .00135 at 0.18550.

Grain and oilseed markets are stronger with row crops putting in new highs in early trade. Word that China confirmed reciprocal tariffs in place since March 4 are being removed helped to inspire additional optimism. With that, soybean meal joined soybeans, taking the product lead again with soybean oil and canola remaining the laggards.

It’s worth noting there has been a lot of press coverage about the 13% tariff remaining on U.S. soybean imports into China — but that is from the initial trade war. That specific tariff rate has been in place since 2019 with exceptional U.S. soybean exports to China seen in the meantime. It is unlikely to be deterring purchases as laid out in the recent trade deal, a theory supported by the market reaction.

Cattle markets are getting hit hard for a second day after Ag Secretary Brooke Rollins reported that President Trump is “very focused” on reopening the U.S./Mexico border to live cattle imports, despite new world screwworm risks.

In outside markets, Treasuries are sharply lower as ADP reported better than expected payroll totals. The October payroll report normally due out Friday will likely be unavailable due to the government shutdown. Despite the higher interest rates that resulted, equity markets are stronger on bargain hunting after Tuesday’s selloff. Energy markets have slipped, and the U.S. dollar is taking a breather following recent gains.