Periodic Updates on the Futures Markets

March canola is down $5.10 per metric ton (mt), March soybean oil is down .69 cents per pound, February European rapeseed is down 14.50 euros per mt and February Malaysian palm oil is down 4.71%. March oats are down 3 1/4 cents per bushel. February crude oil is up $1.01 per barrel and the March Canadian dollar is down .00125 at .70000. The U.S. Dollar Index is up .232 at 106.895 and the Brazilian real is down .00240 at 0.16145.

Oilseed markets continue to be under heavy selling pressure Wednesday morning after long-term support in soybeans finally failed. Momentum did pick up on the move as money managers (likely) added to their net-short position. There is still the possibility of bargain hunting to kick in, most likely led by soybean oil and canola as they have the most bullish fundamentals. Higher energy markets could help in that regard. The close will be important as an indication of seller exhaustion or an acceleration lower for prices.

A weak Brazilian real — testing record lows again after central banks spent billions Tuesday trying to halt the decline — adds pressure to soybeans while a weak Canadian dollar is doing little to support canola.