Periodic Updates on the Futures Markets

January canola is up $4.70 per metric ton (mt), March soybean oil is up .65 cents per pound, European February rapeseed is up 11.50 euros per mt and January Malaysian palm oil is up 3.22%. March oats are up 1 cent per bushel. January crude oil is up $.55 per barrel and the December Canadian dollar is up .0010 at .7141. The US dollar index is up .017 at 106.065.

Palm oil provided the inspiration for Friday’s strength in vegetable oil markets with another sharp rally overnight on concerns over flooding in Indonesia and Malaysia. Canola and European rapeseed gained momentum with the release of USDA’s weekly export sales report containing a much higher than expected soybean oil total. At 124,800 mt, it far exceeded anticipated levels in the 30,000 to 50,000 mt range. That brings total commitments (outstanding sales plus exports to date) to 873 million pounds compared to USDA’s current annual projection of 600 million, only eight weeks into the marketing year. Once open for trading following the Thanksgiving break, soybean oil rallied on the news. A lack of participation in the holiday-shortened session has likely muted the impact, but this would be expected to provide long-term support.

Even though U.S. markets will close early for the holiday, canola will observe regular trading hours so closing comments can be expected at the regular time.