Periodic Updates on the Futures Markets

November canola is down $6.40/mt, December soybean oil is down .64 cents/pound, November European rapeseed is down 3.25 euro/mt and September Malaysian palm oil is down .24%. December oats are down 5 cents/bushel while November European corn is down 1.00 euros/mt. September crude oil is up $2.06/barrel, September ULSD is up $.0317/gallon, and the September Canadian dollar is down .00205 at .71095. The September U.S. Dollar Index is up .184 at 100.965 and the August Brazilian real is up .00060 at 0.19650.

Grain and oilseed markets are pulling back as the expected western corn belt rainfall arrives, benefiting a diagonal path through Nebraska after providing relief to parts of Iowa and dampening bullish enthusiasm along the way. With the potential for an omega-blocking ridge to set up starting over the coming weekend, losses have not been excessive, and gaps remain in both corn and soybeans. Strong gains in crude oil have not helped with most of the oilseed complex still retreating.

Canola may be under a bit of added pressure following the strong rally Monday (that set a new contract high) thanks to uncertainty and anxiety over the surprising tariff announcement Monday. In the past, biofuel-related products were included in the energy-based exemptions so any impact should be short-lived (considering the renewable diesel feedstock certainly is needed south of the border).

Crude oil has taken out Monday’s high as the Houthis threaten to close off access to the Red Sea over the escalation of attacks against Iran. Saudi Arabia has been exporting crude oil through their overland pipeline and out the Red Sea since the war between the U.S. and Iran began with reports suggesting up to 2.5 million barrels per day of exports could be lost.

Outside markets are reacting differently to the gains in energies with treasury prices declining and the resulting increase in interest rates supporting a rally in the U.S. dollar. Stocks on the other hand seem content ignoring the situation altogether and adding to overnight gains.