Periodic Updates on the Futures Markets

March canola is up $11.20 per metric ton (mt) with January up $13.50 per mt, March soybean oil is down .30 cents per pound, February European rapeseed is up 9.25 euros per mt and February Malaysian palm oil is up .38%. March oats are down 4 cents per bushel. February crude oil is up $1.11 per barrel and the March Canadian dollar is down .0003 at .69775. The U.S. Dollar Index is up .208 at 108.015 and the Brazilian real is up .00125 at 0.16265.

Canola is leading the way higher for this holiday abbreviated session. The January canola contract continues to outperform, suggesting shorts are still trying to liquidate their positions ahead of first notice day. With continued strong demand confirmed by the CGC, a psychological shift may be taking place as the risks of remaining short start to outweigh the rewards. A strong close for European rapeseed, good gains in energy markets and a generally weak Canadian dollar are all helping with the rally.

In outside markets, equities are shrugging off new reaction highs in interest rates (with the U.S. 10-year rate topping 4.62%) and inflation concerns, moving significantly higher on the day as capital gains tax concerns limit selling interest.