Periodic Updates on the Futures Markets

March canola is up $3.90 per metric ton (mt), March soybean oil is up 1.16 cents/pound, May European rapeseed is up 2.75 euro per mt and April Malaysian palm oil is down .12%. March oats are down 1/2 cent/bushel. March crude oil is up $1.24 per barrel, March ULSD is up $.0141 per gallon, and the March Canadian dollar is up .00435 at .73765. The March U.S. Dollar Index is down .601 at 96.905 and the March Brazilian real is up .00100 at 0.19170.

Soybean oil remains as the star of the show in the soybean complex with life-of-contract highs close by. The potential for increased demand from India, the low soybean oil yield, the 45Z proposal confirming used cooking oil and tallow are not eligible for the tax credit, and expectations of a jump in the biofuel blending mandate all continue to support a test of contract highs. Crude oil up over $1.20/barrel surely helps with both commodities supporting gains in canola. A weak U.S. dollar should be helping export values of commodities based on that currency while a corresponding stronger Canadian dollar may be holding canola back a bit.

Corn, soybeans and wheat are all lower in likely positioning ahead of Tuesday’s WASDE update with most of the focus on South American production revisions. The Dow Jones pre-report survey is looking for small increases in Brazilian production of both corn and soybeans with even smaller decreases in the Argentine counterparts. See more in DTN Lead Analyst Rhett Montgomery’s preview at https://www.dtnpf.com/agriculture/web/ag/news/article/2026/02/06/usda-turns-attention-south-america.

Strong export inspections at midmorning did little to support prices of row crops while a flash soybean sale announcement of 264,000 mt to China failed to inspire much buying interest there either.

Financial markets are quiet with stocks and bonds both mixed while precious metals have turned sharply higher as the U.S. dollar has sold off and energy markets indicate tensions may be rising in the Middle East.