Canola futures were up early in the day but closed lower on Monday, weighed down by falling wheat and corn and a rising loonie.
In overnight trade January topped $600 but met resistance. As soybeans retreated on weakness in corn and wheat, so did canola.
Commercial hedging also weighed on canola.
January canola closed at $592.10, down $5.90.
• Soybeans started off strong, supported by lingering optimism from Friday’s weekly U.S. soybean crush report that was very strong. U.S. soybean exports are also strong.
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Chicago Board of Trade soybean futures touched a two-week high on Friday on worries that heat may threaten U.S. crops and expectations that the country’s biofuel policy would boost demand for soyoil, analysts said.
• However, exports of U.S. wheat and corn are not running strong enough to match USDA’s forecast for the year. Demand from ethanol makers is also disappointing.
• Wheat was also pressured by a forecast for snow in drought stricken Kansas. However, the amount is three to six inches, hardly enough to break the drought. Larger amounts of snow are forecast for the Midwest.
• Concern about negotiations over avoiding the U.S. fiscal cliff added background nervousness, although president Barack Obama and Republican House speaker John Boehner met to discuss the issue.
Winnipeg (per tonne)
Canola Jan 13 $592.10, down $5.90 -0.99%
Canola Mar 13 $589.20, down $5.30 -0.89%
Canola May 13 $587.50, down $6.10 -1.03%
Canola Jul 13 $583.80, down $6.40 -1.08%
Milling Wheat Mar 13 $290.50, unchanged
Milling Wheat May 13 $293.50, unchanged
Milling Wheat Jul 13 $295.50, unchanged
Durum Wheat Mar 13 $312.40, unchanged
Durum Wheat May 13 $316.40, unchanged
Durum Wheat Jul 13 $319.40, unchanged
Barley Mar 13 $248.00, unchanged
Barley May 13 $249.00, unchanged
Barley Jul 13 $249.50, unchanged
Chicago (per bushel)
Soybeans (P) Jan 13 $14.9625, up 0.25 +0.02%
Soybeans (P) Mar 13 $14.8825 down 3.5 -0.22%
Soybeans (P) May 13 $14.6725, down 4.25 -0.29%
Soybeans (P) Jul 13 $14.5175, down 1.25 -0.09%
Corn (P) Mar 13 $7.24, down 6.75 -0.92%
Corn (P) May 13 $7.275, down 6.25 -0.85%
Corn (P) Jul 13 $7.25, down 5.25 -0.72%
Oats (P) Mar 13 $3.8925, down 0.5 -0.13%
Oats (P) May 13 $3.9475, down 0.5 -0.13%
Oats (P) Jul 13 $3.9475, up 0.25 +0.06%
Minneapolis (per bu.)
Spring Wheat Mar 13 $8.9625, down 6.75 -0.75%
Spring Wheat May 13 $9.0625, down 7.75 -0.85%
Spring Wheat Jul 13 $9.1525, down 6.5 -0.71%
Spring Wheat Sep 13 $9.145, down 6.0 -0.65%
The Bank of Canada noon rate for the loonie was $1.0162, up from $1.0142 on Friday.
The U.S. buck was 98.41 cents Cdn.
Nearby crude oil in New York rose 47 cents to $87.20 per barrel.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 15.37 points, or 0.12 percent, at 12,281.35.
The Dow Jones industrial average rose 54.81 points, or 0.42 percent, at 13,189.82.
The Standard & Poor’s 500 Index rose 10.19 points, or 0.72 percent, closing at 1,423.77.
The Nasdaq Composite Index climbed 22.44 points, or 0.76 percent, to finish at 2,993.78.
