January canola is down $10.70/mt, December soybean oil is down 1.18 cents/pound, February European rapeseed is down 12.00 euro/mt and January Malaysian palm oil is down .02%. December oats are up 1/4 cents/bushel while March European corn is down 3.25 euros/mt. December crude oil is down $7.08/barrel, December ULSD is down $.3214/gallon, and the December Canadian dollar is up .00175 at .71715. The December U.S. Dollar Index is down .246 at 101.480, and the December Brazilian real is up .00060 at 0.18165.

The soybean complex continues to lead oilseed related markets lower with the very bearish yield and production estimates from StoneX being the primary catalyst. Its November yield estimates pegged soybean yield at a whopping 55.0 bpa versus USDA's current estimate of 53.1 bpa and corn yield at 183.1 bpa versus USDA's 181.2 bpa. Despite that, corn has recovered from overnight losses to trade higher for most of the morning. A weak U.S. dollar and hope for improved relations with traditional trading partners can likely take credit there. Another 25,000-bpd increase in ethanol production this week (as reported earlier by the EIA) wouldn't hurt prices either.

Vegetable oil markets are seeing additional pressure from a breakdown in energy prices as traders appear to be interpreting the election outcome as the first step toward a diplomatic end to the Iran war. Caution needs to be exercised in that case as a dangerous phase may be ahead while Trump remains unrestricted until January 3 and may choose that time to escalate the war. In the meantime, crude oil has lost over $16/barrel from Friday's high while diesel prices are off over $.32/gallon on Wednesday alone. That of course weighs on soybean oil and canola prices.

In outside markets, bonds are higher with interest rates declining on the continued pullback in energy prices. The combination has the U.S. dollar maintaining its losses while stocks soar on the potential for improved international relations, less inflation pressure and a reduction in tariffs that should come over time.

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