Periodic Updates on the Futures Markets

January canola is up 15.40 per metric ton (mt), December soybean oil is up 1.20 cents per pound, European February rapeseed is up 10.25 euros per mt and January Malaysian palm oil is up 2.45%. December oats are up 1/4 cents per bushel. December crude oil is down .14 per barrel (bbl) and the December Canadian dollar is down .00455 at .71885. Vegetable oil markets are displaying their relative strength potential at midday.

Canola has completely recovered Tuesday’s losses and is currently trading above Tuesday’s high, leaving an outside reversal higher should it maintain strength into the close. Follow-through weakness overnight had taken prices down to the 100-day moving average so such a display of strength with the rally off is a positive technical development.

A quick side note about the port strike — given the fact canola and European rapeseed are so well correlated still suggests the current labor disruption at the West Coast ports is not a market factor — yet anyway. Should those two markets start to trade inverted — canola lower with rapeseed higher, then the market is pricing in a supply disruption.

In outside markets, the U.S. 10-year rate continues to trade sharply higher at 4.46% currently. That has helped the U.S. dollar maintain its sharp rally. Crude oil was able to come back from a $2 barrel break early in the day, trading higher just recently, likely on the reality that the election results may increase Middle East risk. Something to keep an eye on. Equity markets remain sharply higher into record territory. From a technical point of view, they want to avoid a weak close on the day now.