May canola up $2.30/mt. May soybean oil is up 1.13 cents/pound, May European rapeseed is up 1.50 euro per mt and April Malaysian palm oil is up .83%. May oats are down 4 1/4 cents/bushel. April crude oil is up $.77 per barrel, April ULSD is up $.0425 per gallon, and the March Canadian dollar is down .00050 at .73120. The March U.S. Dollar Index is up .160 at 97.785 and the March Brazilian real is down .00080 at 0.19405.

Soybean oil is leading the charge higher on a Reuters report suggesting the EPA has settled on at least 50% of the small refinery exemptions being reallocated to large refiners, according to sources familiar with the final proposal. That suggests strong demand through blending requirements and removes one of the bearish fears. That said, another new contract high leaves the market extremely overbought and due for a correction. In the meantime, the rally was enough to help canola notch gains yet again. Not surprising given the strength in soybean oil helped canola crush margins reach near-record territory, around $265/mt according to the ICE calculation. That compares to a 3-year low set in May of under $80/mt.

Soybeans have clawed their way back from a quick selloff seen in early trade when reports out of China suggested plans for the upcoming visit by President Trump aren't going that well. It was suggested it may end up being more of a photo opportunity than any meaningful discussions. And the recent rally suggests traders are pricing in additional purchases, not just smiles and handshakes. China has also expressed its displeasure over the recent tariff confusion and White House plans to focus on more specific and substantial tariffs over the next few months.

Energy markets have reversed higher despite a lack of public information out of the U.S. and Iran talks ongoing in Geneva. Suggesting there are most likely developments behind closed doors are increasing trader anxiety.

In outside markets, equities came under heavy selling pressure once the pit session opened on concerns over AI again. That inspired an apparent flow of funds to Treasuries with those now higher on the day. The U.S. dollar has gained in what appears to be a flight-to-safety bid as well.

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