Periodic Updates on the Futures Markets

January canola is up $6.40 per metric ton (mt), March soybean oil is down .41 cents per pound, European February rapeseed is up 4.00 euros per mt and January Malaysian palm oil is down 0.08%. March oats are up 5 cent per bushel. January crude oil is down $.15 per barrel and the December Canadian dollar is down .0037 at .7110. The U.S. Dollar Index is up .632 at 106.46.

Bargain hunting has finally emerged in the canola market with prices firming from early morning losses. Higher European rapeseed values after an unsuccessful attempt to fill Friday’s gap higher are helping along with the palm oil trading near Friday’s strong close. Soybean oil had shrugged off earlier weakness with a firmer energy complex offsetting a strong U.S. dollar. As crude drifted down on the day, it took soybean oil back to the lows.

The U.S. dollar is off its highs of the day — but barely — approaching 107.00 resistance again. The Brazilian real is exceptionally weak following the President-elect’s threat over the weekend to impose 100% tariffs on any country trying to set up a BRICS currency to be used as a reserve currency instead of the U.S. dollar. Brazil is the B in that acronym and the lower real makes U.S. soybeans even less competitive versus their Brazilian counterparts — leaving soybeans lower on the day and weighing on the entire soy complex.