Periodic Updates on the Futures Markets

January canola is up $1.50 per metric ton (mt), March soybean oil is down 0.10 cent per pound, European February rapeseed is up 1.00 euros per mt and February Malaysian Palm Oil is down 3.60%. March oats are up 1/2 cent per bushel. January crude oil is up $0.62 per barrel and the December Canadian dollar is down 0.0003 at 0.70615. The U.S. dollar index is up 0.440 at 106.565 and the Brazilian real is up 0.00095 at 0.16485.

Canola continues to demonstrate relative strength going into the World Agricultural Supply and Demand Estimates (WASDE) report, thanks to follow-through buying after Thursday’s bullish Statistics Canada final production estimate and the resulting money manager short covering. Light resistance at $625/mt might be enough to pause the rally, given the speed of the recent bounce in prices. Soybean oil has recovered from earlier losses ahead of the WASDE report, while European rapeseed turned higher. 

Strength in the energy market has offset strength in the U.S. dollar, leaving little net impact going into the report. As a side note, the Brazilian real appears to have stabilized for the time being, taking that pressure off grain and oilseed markets.