January canola is up $8.30 per metric ton (mt), Dec soybean oil is up .94 cents per pound, February European rapeseed is up 4.75 euro per mt and January Malaysian palm oil is up .14%. Dec oats are up 1 1/4 cents per bushel. December crude oil is up $.07 per barrel, December ULSD is up $.0106 per gallon, and the December Canadian dollar is down .00015 at .71395. The December U.S. Dollar Index is up .146 at 99.345 and the December Brazilian real is down .00035 at 0.18790.

Grain and oilseed markets are sharply higher in what appears to be a flow of funds out of equity markets and into ag commodities (in particular) over concerns about inflation. And why not, considering the S&P Index is still almost 62 times the value of the Bloomberg Commodity Index compared to just 29 times in early 2022 and only 6 times the commodity index during the 2008 financial crisis. With similarities being drawn to the beginning of the century on a continual basis recently, support for relatively cheap ag commodities while taking profits on equity positions may continue from the macro side of the market.

In quite a turn of events, the key reversal higher in soybeans that I suggested might be too much for bulls to hope for in the opening comments -- has just played out with January soybeans reaching $.30/bushel gains on the day. On the heals of a gap lower opening, taking out Friday's high with such a large range (on the day) is sure to attract plenty of attention. Now, a close above Friday's high ($11.5225/bushel) would be needed to confirm the key reversal higher.

That has rippled through the rest of the ag complex with significant gains seen all the way through to and including cattle markets. Exceptional corn export inspections added to the buying interest with over 80 million bushels exported during the week ended Nov. 13. Only a handful of weeks have been better since 1982, resulting in corn export inspections running 73% above last year's pace. The USDA is now looking for a 9% annual increase after Friday's increased export estimate.

In outside markets, indecisive action is the norm despite all the headline volatility. Treasury, equity and energy markets are all now mixed while the U.S. dollar has been able to maintain its minor gains, keeping the bounce off the 25-day moving average intact.

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