Periodic Updates on the Futures Markets

March canola is down $0.80 per metric ton (mt), March soybean oil is up .02 cents per pound, February European rapeseed is down 5.50 euros per mt and February Malaysian palm oil is down 2.36%. March oats are up 3 1/2 cents per bushel. February crude oil is up $.58 per barrel and the March Canadian dollar is up .0015 at .69745. The U.S. Dollar Index is up .258 at 108.050 and the Brazilian real is up .00034 at 0.16149.

Grain and oilseed markets have weakened as the morning has progressed with a firming U.S. dollar weighing on values. Strong energy markets led by heating products have provided little support with slow holiday trade prevailing. A cold snap about to hit the U.S. East Coast has both natural gas and heating oil very strong.

Canola and soybean oil have been able to largely ignore that support as well as another large soybean oil flash sale announced earlier in the morning — 23,000 mt (50.6 million pounds) of soybean oil was sold to India — taking 2024-25 total commitments (exports plus outstanding sales) to 1.209 billion pounds in just the first three months of the marketing year compared to USDA’s current annual projection of 1.1 billion pounds. Further revisions higher are expected from the USDA with increased crush likely required to meet the increased demand. With soybean oil remaining near a record discount to palm oil instead of the normal premium, further export sales can be expected.

In outside markets, equities are recovering from another early morning selloff with profit-taking ahead of potential January volatility being blamed. That has inspired light flight-to-safety buying of the U.S. dollar and U.S. treasuries with a pullback in interest rates resulting. The U.S. 10-year note is at 4.55% versus 4.64% on Dec. 26.