Periodic Updates on the Futures Markets

March canola is up $1.60 per metric ton (mt) with January up $5.40 per mt, March soybean oil is up .26 cents per pound, February European rapeseed is down 15.00 euros per mt and February Malaysian palm oil is up 1.77%. March oats are down 5 1/4 cents per bushel. February crude oil is up $.72 per barrel and the March Canadian dollar is down .0008 at .6951. The US dollar index is down .118 at 107.775 and the Brazilian real is down .00075 at 0.16105.

Canola is near the highs of the day with the January contract continuing to outperform, adding to it’s premium over March ($4 mt over compared to a $14 discount to March at the end of November). That suggests on top of shorts still trying to liquidate their positions ahead of first notice day, commercials may be planning on standing for delivery — a bullish sign. Soybean oil is stronger but off the highs of the day as soybean meal pulls back a bit. A weak close for European rapeseed is being offset by good gains in energy markets and a slightly weaker Canadian dollar.

In outside markets, equities are selling off with nothing but the old news of recent reaction highs in interest rates (with the U.S. 10-year rate reaching 4.64%) and inflation concerns evident to impact trade.