July canola is down $1.30/mt with November canola down $1.70/mt, July soybean oil is down .55 cents/pound, August European rapeseed is down 1.25 euro/mt and August Malaysian palm oil is down .91%. December oats are up 3/4 cents/bushel. August crude oil is down $2.94/barrel, August ULSD is down $.0059/gallon, and the September Canadian dollar is down .00110 at .70500. The September U.S. Dollar Index is up .222 at 101.395 and the July Brazilian real is down .00070 at 0.19160.

Oilseed markets remain on the defensive thanks to relentless selling pressure in energy markets despite another sharp decline in crude oil stocks in the U.S.

Crude oil traders appear to be attempting to fill the gaps on the daily, weekly and monthly charts that were left when the initial attacks on Iran began over the first weekend of March. As a reminder, a gap in price remains between $67.83 and $69.20/barrel so the current low of the session at $69.63/barrel is getting close to working into it. On the other hand, a rally from here would be a bullish technical sign as those wanting or needing to buy would be reluctant to wait until the gap was filled for fear of missing out on an opportunity. Conflicting reports regarding the stability of the MOU could provide a bullish fundamental incentive for such a turn. The continued decline of crude oil stocks within the U.S. certainly could as well.

In its weekly inventory report, the EIA confirmed crude oil stocks (excluding the SPR) fell more than expected again with a 6.1-million-barrel drawdown during the week when only a 4.1-million-barrel decline was anticipated. SPR stocks fell by an additional 9.1 million barrels, taking those supplies down to lows not seen since May 1983. Stocks at Cushing, Oklahoma (the NYMEX delivery hub) fell another 1.1 million barrels to an uncomfortable 19 million barrels. Products did see inventory builds, which weighed on their prices. Gasoline stocks rose by 2.1 million barrels when a 1.3-million-barrel drawdown was expected while distillate stocks increased 3.1 million barrels when they were expected to fall by 1.1 million barrels.

Outside markets are reacting positively to the price decline in energy markets, ignoring the present danger that tight domestic stocks of crude oil present. With that, stocks and bonds are both higher while the U.S. dollar remains strong as it breaks higher from its saucer bottom that's been years in the making.

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