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In Today’s Update

Today, it’s the 12 Days of Christmas — HOT TAKE style.

On the first day of Christmas, the market gave to me…

Ironically, more China.

After a year dominated by U.S. threats under Section 301, Chinese shipyards ended 2025 with more market share, not less.

Dry bulk newbuilding dropped to a five-year low, dropping more than 50% year-on-year amid softer freight expectations, long lead times, and ongoing regulatory and fuel uncertainty.

Even so, Chinese yards captured 81% of new bulk carrier orders by capacity in 2025, up 9% from 2024 and largely at the expense of Japanese yards, underscoring China’s continued dominance despite the now-suspended USTR port fees on Chinese-built vessels.

In November, the U.S. and China agreed to a one-year pause on the proposed shipping-related measures, with both sides suspending retaliatory actions amid a broader thaw in trade tensions.

On the second day of Christmas, the market gave to me…

Hope that canola finally found a bottom.

After reaching two-year highs last summer on weather fears and strength in soybean oil, canola has since collapsed 20% as Canada–China trade tensions intensified.

Futures are down 9% since Thanksgiving, closing lower in all but three of the past 20 trading days, hit by a one-two punch of a record Canadian crop and the loss of exports to China, compounded by weak energies and heavy global veg oil markets.

Although none of canola’s policy issues are resolved — price action suggests we might have finally found a bottom.

Twins: canola (yellow) has moved lower in lockstep with soybeans (green) after Jan made its $11.60 mid-November high.

On the third day of Christmas, the market gave to me…

A disjointed soy complex.

With one week left in the year, soybean oil has done the heavy lifting in 2025, up more than 20% year-to-date, despite being whiplashed by biofuel policy throughout the year.

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