Plains, Prairies Quick Takes

Plains, Prairies Quick Takes

November canola is up $6.50 per metric ton (mt), December soybean oil is up .43 cents per pound, November European rapeseed is up 2.25 euros per mt and October Malaysian palm oil is up .27%. December oats are down 5 3/4 cents per bushel. October crude oil is up $1.41 per barrel, October ULSD is up $.0943 per gallon, and the September Canadian dollar is down .00310 at .72590. The September U.S. Dollar Index is up .480 at 98.170 and the September Brazilian real is down .00125 at 0.18175.

Canola continues to trade higher as the morning progresses, thanks to gains in soybean oil and energy markets to start the month. The oversold condition of canola despite inadequate production to maintain exports is surely helping. Corn has managed to claw its way back to nearly unchanged, but soybeans remain under pressure. Besides the forecast for scattered showers to dip down into the eastern corn belt Wednesday, weekend meetings between China, India and Russia are likely adding to anxiety over the apparent boycott of U.S. ag exports by China. They traditionally take a big portion of fall soybean exports off the combine, especially from the northwest corn belt. The lack of that business is hurting cash prices in those areas with much wider-than-normal basis levels, suggesting the crop may need to be stored, to begin with, anyway.  

Outside markets are volatile to start the month, with equities extending their overnight losses while treasuries remain under pressure. Gains in crude oil have declined slightly, while those seen in diesel and gasoline markets have increased throughout the morning. The cumulative effect of Ukraine’s drone attacks on Russian energy infrastructure is getting credit for the strong energy markets. As far as the U.S. dollar goes, gains have been trimmed slightly, with the close having to be monitored for the potential for another retreat from the 100-day moving average.