Canola futures spent most of the day significantly higher but gains were muted at the close after late session selling tied to a retreat in soybeans.
Canola rose in the morning largely due to a sharp fall in the Canadian dollar after the Bank of Canada signaled that an interest rate increase is “less imminent” because of reduced expectation for rising inflation.
The loonie slid to near-par with the U.S. buck, a level not seen since mid November.
There were also rumours of new canola export business.
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Soy fell on chart-based weakness after the March contract fell below the 200-day moving average. Also soy was pressured by weather forecasts that show a shift to a slightly wetter outlook in the 10-day outlook in Argentina. Weaker soybeans weighed on corn and wheat.
March canola closed at $605.80, up 80 cents. November closed at $551.50, up $1.50.
Worries about continuing drought in the U.S. Great Plains provided underlying support.
In canola, concerns about tightening stocks continued to support prices.
• Reuters reported that temperatures sometimes exceeding 40C in Australia in recent weeks have dried soils in crop areas. Wheat seeding is still about three months away, but the current dry situation will mean rain in the Southern Hemisphere autumn in Australia will be critical to getting the crop established.
Winnipeg ICE (per tonne)
Canola Mar 13 $605.80, up 0.80 +0.13%
Canola May 13 $594.40, down 0.10 -0.02%
Canola Jul 13 $583.80, up 1.50 +0.26%
Canola Nov 13 $551.50, up 1.50 +0.27%
Milling Wheat Mar 13 $291.00, unchanged
Milling Wheat May 13 $294.00, unchanged
Milling Wheat Jul 13 $296.00, 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 $241.50, unchanged
Barley May 13 $242.50, unchanged
Barley Jul 13 $243.00, unchanged
Chicago (per bushel)
Soybeans (P) Mar 13 $14.37, down 14.75 cents -1.02%
Soybeans (P) May 13 $14.2675, down 12.5 -0.87%
Soybeans (P) Jul 13 $14.1975, down 11.0 -0.77%
Soybeans (P) Aug 13 $13.945, down 10.25 -0.73%
Corn (P) Mar 13 $7.2075, down 7.75 -1.06%
Corn (P) May 13 $7.2275, down 7.5 -1.03%
Corn (P) Jul 13 $7.17, down 5.25 -0.73%
Oats (P) Mar 13 $3.5975, up 0.75 +0.21%
Oats (P) May 13 $3.6775, up 2.75 +0.75%
Oats (P) Jul 13 $3.715, up 1.0 +0.27%
Minneapolis (per bushel)
Spring Wheat Mar 13 $8.605, down 3.75 cents -0.43%
Spring Wheat May 13 $8.7225, down 3.75 -0.43%
Spring Wheat Jul 13 $8.8125, down 3.5 -0.40%
Spring Wheat Sep 13 $8.82, down 1.0 -0.11%
The Bank of Canada noon rate for the buck was $1.0014 US, down from $1.0066 the day before.
The U.S. greenback was 99.86 cents Cdn.
Nearby crude oil in New York staggered, falling $1.45 to $95.23 per barrel on problems with the recently expanded Seaway pipeline that moves crude from the hub at Cushing, Oklahoma to Texas refineries.
The recently improved pipeline had started to reduce the glut of oil at Cushing caused by rising Canadian and North Dakota oil production. The constriction would start to rebuild that glut.
Brent oil, which reflects international oil prices, rose slightly today.
Stronger-than-expected profits at IBM and Google helped lift stock markets.
In early tallies —
The Toronto Stock Exchange S&P/TSX composite index fell 30.58 points, or 0.24 percent, to close at 12,794.05.
The Dow Jones industrial average gained 66.96 points, or 0.49 percent, to 13,779.17.
The Standard & Poor’s 500 Index gained 2.21 points, or 0.15 percent, to 1,494.77.
The Nasdaq Composite Index gained 10.49 points, or 0.33 percent, to 3,153.67.
