July canola is up $17.60/mt with November canola up $17.80/mt, July soybean oil is up .56 cents/pound, August European rapeseed is up 5.50 euro per mt and August Malaysian palm oil is up .77%. July oats are down 7 1/4 cents/bushel. July crude oil is up $2.23 per barrel, July ULSD is up $.1564 per gallon, and the June Canadian dollar is down .00290 at .72045. The June U.S. Dollar Index is up .241 at 99.425 and the July Brazilian real is down .00140 at 0.19675.

Vegetable oil markets have managed to hold on to most of their overnight gains with canola and soybean oil remaining close to contract highs with strong energy markets helping. Little reason for optimism regarding the opening of the Strait of Hormuz anytime soon has helped with the latter as the situation continues to deteriorate if anything.

Canola is leading the way higher with the cut in Australian production discussed in previous reports getting credit for prices hitting the highest level seen since 2023 on headline news streams. That may be the most troubling sign given the old saying that a move is over once it makes the news, but the issues are serious that are impacting global supplies so it shouldn't be that simple.

Grain markets have turned weaker again with the selling being relentless on the lack of threats to the Corn Belt and beginning of the wheat harvest in the U.S. southern plains.

Crude oil is getting an additional boost from a bullish weekly inventory report from the EIA showing crude oil stocks (excluding the SPR) fell by 8 million barrels when the trade was looking for a 3.3-million-barrel draw. On top of that, the continued emergency releases resulted in the SPR inventory falling by an additional 8 million barrels. Kicking the can down the road regarding Iran has worked so far but time (and inventory) is running out.

Outside markets are reacting to the increase in energy markets with stocks finally showing some signs of concern, all trading lower at midday. Treasury markets are on their lows after turning down from 25-day moving averages with interest rates climbing on inflation fears. With that, the U.S. dollar is also firming from overnight levels.

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