November canola is up $8.90/mt, December soybean oil is up 1.55 cents/pound, November European rapeseed is down 2.00 euro/mt and December Malaysian palm oil is down .42%. December oats are down 2 1/2 cents/bushel while November European corn is .75 euros/mt. November crude oil is down $2.22/barrel, November ULSD is down $.1713/gallon, and the December Canadian dollar is down .00100 at .70395. The December U.S. dollar index is down .193 at 101.690, and the December Brazilian real is up .00020 at 0.19045.

Energy markets are lower but well off of their lowest levels that were seen in early trading when Trump announced that the EU had given in to his threats to impose a U.S. diesel export ban unless they agree to release 120 million barrels (mb) of emergency reserves over the next 6 months. In the end, G7 leaders agreed to release 100 mb within the next 4 months "including a frontloaded substantial diesel release within the first 20 days by G7 members and partners".

Crude oil losses being cut nearly in half may well be due to concerns that the supply of oil is not increased by further tapping into emergency reserves. It is simply increasing the risk and vulnerability to all in the future in exchange for immediate relief. But futures markets tend to be forward looking.

For some reason, grain and oilseed prices sold off at the same time so traders may be worried about a backlash against the U.S. over its demands that appear to be politically motivated. Or it may simply be coincidence over the improved harvest weather on the way.

Despite the volatility and weakness in energy markets, soybean oil and canola are the bright spots with significant gains in those markets, presumably benefitting from the ongoing pullback in soybean meal prices and resulting spread trading.

Treasuries have turned lower on the news (resulting in increased interest rates) despite the anticipated anti-inflationary impact of the developments. Not to mention a weaker-than-expected September labor report that also included revisions down in July and August job totals. Treasury prices had spiked and interest rates pulled back on the release but reversed when news hit about the G7 decision to agree to Trumps demands. That could suggest foreign selling of U.S. treasuries in response (or retaliation). Despite the higher interest rates, the U.S. dollar losses increased in early trading.

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