July canola is down $15.20/mt with November canola down $14.20/mt, July soybean oil is down 1.08 cents/pound, August European rapeseed is down 5.50 euro per mt and July Malaysian palm oil is down 0.14%. July oats are up 7 3/4 cents/bushel. June crude oil is down $0.21 per barrel, June ULSD is down $0.0691 per gallon, and the June Canadian dollar is down 0.00070 at 0.72950. The June U.S. dollar index is up 0.222 at 98.645 and the May Brazilian real is up 0.00010 at 0.01997.

Grain and oilseed markets are getting hammered as if a trade war just started with one of the U.S.'s largest customers, with all indications being nothing of the sort. China hasn't been buying any corn and very little wheat for some time, yet those markets are down $0.14 and $0.24/bushel respectively. July soybeans are down $0.44/bushel after the comment from Beijing was that soybean issues "are all taken care of" -- implying no new business, according to the market reaction.

The more likely potential explanation for the violence of the setback is that pent-up selling strategies are being executed. If funds had been waiting for the China trip to be concluded over fear of any surprises, but wanted to establish their traditional seasonal strategy of selling row crops aggressively once planting reached 50% complete with no obstacles in sight, they may be doing just that. It's hard to blame them given how successful the strategy has been, but this year has many unusual factors that could derail the outcome. It's worth recalling that in 2012, the strategy was working perfectly until the middle of June when funds finally took the drought seriously and drove prices up by 50% in six weeks covering their shorts.

In the meantime, there has been no news on the Strait of Hormuz front (as expected) with energy markets drifting around unchanged. That has allowed treasury markets to remain quietly higher while the U.S. dollar continues to firm from overnight levels. Stocks are sharply higher again, setting records daily, because no confirmed deals mean different things to stock traders versus grain and oilseed traders.

(c) Copyright 2026 DTN, LLC. All rights reserved.