Canola up Thursday on technical strength and South American crop worries

Canola futures rose a little on Thursday, supported by rising soybeans, good demand and soybean production problems in Argentina.

January canola closed at $597.20 per tonne, up $4.30, or 0.73 percent.

Canola also had technical support with January near the 40- and 50-day moving averages. Funds are holding a net short position of an estimated 20,000 contracts.

Farmers continue to be strategic in their canola sales with many thinking that a rally is possible during the winter.

• Last week’s optimism about reviving demand for U.S. cereals was perhaps premature. Corn and wheat fell today on disappointing weekly U.S. exports.

Corn exports totaled 236,100 tonnes, shy of estimates for 450,000 to 650,000 tonnes.

Wheat exports were 279,300 tonnes, down from 657,400 tonnes a week ago and below forecasts for 400,000 to 500,000 tonnes.

U.S. soybean exports were also below expectations.

• More heavy rain is expected in key growing regions in Argentina in the coming days, further delaying seeding.

Delayed seeding in South America could shift corn acres into soybeans and also reduce the total number of acres seeded.

Also it could push back the harvest forcing buyers to continue sourcing soybeans from the U.S. for a while longer.

• The international Grains Council lowered its estimate of 2012-13 wheat production by one million tonnes, but increased its year end stocks forecast by one million tonnes.

It released its first outlook for seeding in 2013, forecasting sown area to increase by 2.2 percent to 223.2 million hectares, the most since 1998.

 

Winnipeg (per tonne)

Canola Jan 13  $597.20, up $4.30       +0.73%

Canola Mar 13  $597.20, up $4.60       +0.78%

Canola May 13  $595.70, up $4.50       +0.76%

Canola Jul 13  $592.00, up $4.30       +0.73%

 

Milling Wheat Dec 12  $308.00, unchanged

Milling Wheat Mar 13  $316.00, unchanged

Milling Wheat May 13  $319.00, unchanged

 

Durum Wheat Dec 12  $312.00, unchanged

Durum Wheat Mar 13  $316.00, unchanged

Durum Wheat May 13  $320.00, unchanged

 

Barley Dec 12  $245.00, unchanged

Barley Mar 13  $248.00, unchanged

Barley May 13  $249.00, unchanged

 

Chicago (per bushel)

Soybeans (P) Jan 13  $14.48, up 1.75 cents (+0.12%)

Soybeans (P) Mar 13  $14.41, up 6.0       +0.42%

Soybeans (P) May 13  $14.185, up 8.0       +0.57%

Soybeans (P) Jul 13  $14.0825, up 6.5       +0.46%

 

Corn (P) Dec 12  $7.515, down 8.75       -1.15%

Corn (P) Mar 13  $7.5875, down 5.25       -0.69%

Corn (P) May 13  $7.58, down 4.0       -0.52%

 

Oats (P) Dec 12  $3.6075, down 10.0       -2.70%

Oats (P) Mar 13  $3.785, down 8.75 (-2.26%)

Oats (P) May 13  $3.82, down 8.0       -2.05%

 

Minneapolis (per bushel)

Spring Wheat Dec 12  $9.3125, down 7.5 cents       -0.80%

Spring Wheat Mar 13  $9.5125, down 1.5       -0.16%

Spring Wheat May 13  $9.615, up 0.5       +0.05%

Spring Wheat Jul 13  $9.6025, down 2.0       -0.21%

 

The Bank of Canada noon rate for the loonie was $1.0070 down from $1.0072 the day before.

The U.S. buck was 99.30 cents Cdn.

Nearby light crude oil in New York rose $1.58 to $88.07 per barrel.

Stock markets bounced around on conflicting statements by politicians about progress in the talks to address the fiscal cliff. Strong quarter profits at the Royal Bank of Canada lifted bank stocks.

In unofficial tallies:

The Toronto Stock Exchange’s S&P/TSX composite index rose 62.52 points, or 0.51 percent, to close at 12,202.85.

The Dow Jones industrial average rose 36.71 points, or 0.28 percent, to end at 13,021.82.

The Standard & Poor’s 500 Index climbed 6.02 points, or 0.43 percent, to finish at 1,415.95.

The Nasdaq Composite Index added 20.25 points, or 0.68 percent, to close at 3,012.03.

 

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