Canola rises Monday on U.S. budget optimism

Canola and other crop futures rose Monday on a technical bounce, a weaker U.S. dollar and hope that U.S. politicians will compromise to put in place a strategy to address the fiscal cliff.

January canola closed at $580 per tonne, up $4.30 or 0.75 percent.

Canola movement to date in this crop year is starting slip behind last year’s pace.

Oilseeds were also supported by news that China was temporarily halting soybean sales from its government-owned stores while it started to buy from domestic farmers to rebuild stocks.

Gains were limited by improved, drier weather in Argentina in the last week that allowed soybean seeding to proceed after delays caused by excessive rain.

• The weekly U.S. winter wheat condition rating reports fell more than expected to 34 percent good to excellent, from 36 percent the week before. That is the worst rating for this time of year since the report began in the mid 1980s.

The Kansas rating is only 30 percent good to excellent an in Nebraska it is only 17 percent.

Normally, fall condition has little bearing on the final performance of the winter wheat crop, but one has to wonder if these particularly poor ratings will set a new trend.

Generally, investors were more willing to take on risk in commodities and equities after sharp losses last week. They were heartened that U.S. lawmakers appear willing to compromise in negotiations to avert $600 billion in tax increases and spending cuts due to start kicking in January, a situation that has come be known as the fiscal cliff.

 

Winnipeg (per tonne)

Canola Jan 13  $580.00, up $4.30       +0.75%

Canola Mar 13  $577.40, up $4.10       +0.72%

Canola May 13  $576.20, up $4.60       +0.80%

Canola Jul 13  $572.90, up $4.60       +0.81%

 

Milling Wheat Dec 12  $300.20, down $3.30       -1.09%

Milling Wheat Mar 13  $309.70, down $3.30       -1.05%

Milling Wheat May 13  $312.70, down $3.30       -1.04%

 

Durum Wheat Dec 12  $311.90, down $0.50       -0.16%

Durum Wheat Mar 13  $318.50, down $0.50       -0.16%

Durum Wheat May 13  $322.50, down $0.50       -0.15%

 

Barley Dec 12  $250.00, unchanged

Barley Mar 13  $253.00, unchanged

Barley May 13  $254.00, unchanged

 

Chicago (per bushel)

Soybeans (P) Jan 13  $13.9475, up 11.5       +0.83%

Soybeans (P) Mar 13  $13.82, up 14.0       +1.02%

Soybeans (P) May 13  $13.6575, up 14.251.05%

Soybeans (P) Jul 13  $13.58-6, up 15.25       +1.14%

 

Corn (P) Dec 12 $7.3875, up 11.75 (+1.62%)

Corn (P) Mar 13  $7.425, up 11.5 (+1.57%)

Corn (P) May 13  $7.3775, up 11.0 (+1.51%)

 

Oats (P) Dec 12  $3.755, up 11.0       +3.02%

Oats (P) Mar 13  $3.86, up 11.5       +3.07%

Oats (P) May 13  $3.875, up 10.25       +2.72%

 

Minneapolis (per bushel)

Spring Wheat Dec 12  $9.1025, up 0.5       +0.05%

Spring Wheat Mar 13  $9.2125, up 0.25       +0.03%

Spring Wheat May 13  $9.295, up 2.75       +0.30%

Spring Wheat Jul 13  $9.32, up 4.25       +0.46%

 

The Bank of Canada noon rate for the loonie climbed back above par at $1.0036 US, up from 99.72 cents on Friday.

The U.S. buck was 99.64 cents Cdn.

Nearby light crude in New York rose 2.36 to settle at $89.28 per barrel.

In early tallies:

The Toronto Stock Exchange’s S&P/TSX composite index closed up 162.68 points, or 1.37 percent, at 12,040.40.

The Dow Jones industrial average gained 207.65 points, or 1.65 percent, at 12,795.96.

The Standard & Poor’s 500 Index rose 27.01 points, or 1.99 percent, at 1,386.89.

The Nasdaq Composite Index climbed 62.94 points, or 2.21 percent, to close at 2,916.07.

 

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