January canola is down $2.10 per metric ton (mt), March canola is down $2.00 per metric ton (mt), March soybean oil is down .58 cents/pound, February European rapeseed is up .50 euro per mt and February Malaysian palm oil is down .32%. March oats are down 3 1/4 cents/bushel. January crude oil is down $.93 per barrel, January ULSD is down $.0204 per gallon, and the December Canadian dollar is down .00035 at .72615. The March U.S. Dollar Index is down .109 at 97.915 and the January Brazilian real is up .00015 at 0.18440.

Grain and oilseed markets turned lower on the open of the day session as the December liquidation event continues (for those that weren't already). Losses have accelerated in energy markets (with that having the greatest impact on grain and oilseed markets). Heavy selling pressure returned to cryptocurrencies with bitcoin now down almost $4,000, dragging equity markets lower on the day with gold even giving up its early gains. Basically, the only green on the board is found in treasury markets, the Japanese yen and European currencies. The yen strength could signal unwinding of the carry trade; a move predominantly associated with risk-off trading. Interestingly enough, the U.S. dollar remains slightly lower with no apparent flight-to-safety bid.

The selling has pulled soybeans down into the top of the gap higher from Oct. 27 with a decline to $10.63/bushel required to fill it completely. The low on the day so far is $10.67/bushel, satisfying the target from the head-and-shoulders top formation from November. The combination of weakness in soybeans, soybean oil, and energy markets has been too much for canola to ignore with prices quietly lower after several attempts to trade higher on the day. It is worth noting that the premium for European rapeseed over ICE canola has risen back up to $155/mt CAD, a level only exceeded a few times in history and one that traditionally attracts European buying interest in canola. That most likely explains last week's CGC weekly grain statistics report that showed significantly better exports of canola (for the week).

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