November canola is down $1.40/mt, December soybean oil is down .58 cents/pound, November European rapeseed is down .25 euro/mt and November Malaysian palm oil is up .52%. December oats are up 1 1/2 cents/bushel while November European corn is down 1.25 euros/mt. November crude oil is up $2.11/barrel, November ULSD is now down $.0879/gallon, and the December Canadian dollar is down .00180 at .71195. The December US dollar index is up .501 at 100.820, and the December Brazilian real is down .00160 at 0.19395.

Grain and oilseed markets remain under pressure ahead of Xi Jinping's visit to Washington on Thursday despite a strong recovery in crude oil prices. Even though the White House has set expectations for any meaningful announcement low, China's commitment to purchasing $17 billion in non-soybean agricultural goods (by the end of 2028) leaves the door open for some sort of a bullish surprise. That said, the lack of optimism going into the visit has most markets giving back Monday's strong gains, and more in the case of wheat.

Crude oil and gasoline have rallied while diesel remains under pressure as reports circulate suggesting some sort of voluntary cap on diesel exports. Even the Energy Secretary came out against the idea of a diesel export ban as refinery operations would have to slow due to diesel supplies growing faster that gasoline, and storage becoming an issue. That would drive the price of gas and jet fuel higher, creating shortages there, while lowering diesel prices amid large inventories. A limited export program would allow more of a matched refinery pace, allowing for greater domestic supply of diesel and lower price without risking a tighter gasoline or jet fuel situation.

Stocks and bonds are under pressure as a result of the rebound in crude oil as well as strong economic data out Wednesday morning. The U.S. 10-year note has topped 5.07% for the first time since July of 2007, inspiring a strong rally in the U.S. dollar while weighing on stocks. The dollar gains are providing an additional headwind for ag markets at midday.

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