Periodic Updates on the Futures Markets

January canola is up $15.00 per metric ton (mt), March soybean oil is up .71 cents per pound, European February rapeseed is up 5.50 euros per metric ton (mt) and February Malaysian Palm Oil is up 2.40%. March oats are down 9 1/4 cents per bushel. January crude oil is down $.03 per barrel and the December Canadian dollar is up .0013 at .7126. The U.S. Dollar Index is down .420 at 105.870.

Confirmation of a small Canadian canola crop (by Statistics Canada Thursday morning) was enough to focus the markets attention back to the issues facing its balance sheet. At 17.845 million metric ton (mmt), it was down significantly from the September model-based estimate of 18.98 mmt and last years production of 19.192 mmt. Given the unsustainable pace of exports and domestic use, such a reduction in available supplies is catching trader’s attention, for a while anyway.

Strong global vegetable oil values are helping with soybean oil higher on another favourable weekly export sales report Thursday morning. With 19.5 mmt of net sales reported, total commitments are now 446.3 mmt or 981.9 million pounds when Tuesday’s sale to South Korea is included. That compares to the current USDA annual projection of 600 million pounds. A weak U.S. dollar is helping as is a steady energy market with the OPEC+ meeting result being as expected.