Periodic Updates on the Futures Markets

May canola is up $10.30/mt, May soybean oil is up 1.35 cents/pound, May European rapeseed is up 7.25 euro per mt and April Malaysian palm oil is down .05%. May oats are down 3 1/2 cents/bushel. April crude oil is up $3.72 per barrel, April ULSD is up $.2828 per gallon, and the March Canadian dollar is down .00400 at .73005. The March U.S. Dollar Index is up 1.015 at 98.580 and the March Brazilian real is down .00190 at 0.19130.

Soybean oil and canola remain the only positive markets of the grains and oilseeds thanks to gains remaining in energy markets. Continued attacks from both sides of the conflict and the Strait of Hormuz remaining virtually at a standstill as insurers have pulled coverage is keeping those markets on edge.

Corn and wheat are lower with wheat leading losses on what is likely a reaction to the surging U.S. dollar. Rain expected this week for the eastern portions of the Southern Plains is likely contributing to the selling pressure. Soybeans remain under pressure amid concerns over China’s reaction to the situation. It is not clear yet whether President Trump’s trip to China at the end of March is at risk or not. Even a strong export inspection report out midmorning was ignored by the market considering all the Middle East related developments.

In outside markets, stocks do what they normally do in these sorts of situations, rally back from the initial reaction with most indexes trading higher on the day recently. Treasuries, on the other hand, are near their lows as part of a meaningful reversal from an initial gap higher Sunday evening. It’s safe to assume inflation concerns are behind the break with a potential key reversal in place now.