Periodic Updates on the Futures Markets

January canola is down 9.40 per metric ton (mt), December soybean oil is down .78 cents per pound, European February rapeseed is down 4.25 euros per mt and January Malaysian palm oil is down 2.36%. December oats are up 1 1/4 cents per bushel. January crude oil is up .74 per barrel (bbl) and the December Canadian dollar is down .0013 at .7154. The U.S. Dollar Index is up .700 at 107.630.

As feared in the opening comments, a break above the 2023 high for the U.S. dollar has triggered further significant gains for the currency, inspiring another round of aggressive selling in the grain and oilseed markets. Even strength in energy markets can’t seem to slow the selling momentum in vegetable oils which are trading as if the new administration will pull the plug on anything biofuel related. That should hardly be the case considering president-elect Donald Trump’s campaign promise to bring the price of fuel down at the pump. Eliminating biofuel blending mandates would certainly have the opposite effect.