Periodic Updates on the Futures Markets

March canola is up $.10 per metric ton (mt) with January up $2.90 per mt, March soybean oil is up .37 cents per pound, February European rapeseed is up 3.75 euros per mt and February Malaysian palm oil is up 2.12%. March oats are down 5 3/4 cents per bushel. February crude oil is down $.83 per barrel and the March Canadian dollar is down .0021 at .6969. The U.S. Dollar Index is up .509 at 107.855 and the Brazilian real is down .00315 at 0.16170.

Vegetable oil markets are still in favor in early trade while soybeans and meal pull back. The January canola contract continues to lead the way higher for that commodity, suggesting shorts are 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.

Higher interest rates and a strong U.S. dollar thanks to inflation concerns are combining with weakness in energy markets to be a headwind for U.S. markets. Renewed selling of the Brazilian real adds pressure to soybeans while canola benefits from weakness in the Canadian dollar.