Weak loonie, strong soy oil lifts canola

Canola futures bucked the lower trend in other crop prices.

The decline the Canadian dollar over the past few days to the lowest level in about eight months is helping to generate domestic and exports demand for canola.

Canola basis levels have improved in the last few days, attracting new farmer deliveries that triggered grain company hedging.

Soybean oil rose slightly, also lending support to canola. Deferred month soybeans were slightly higher.

Most traded May closed at $634.6, up $6.20. November closed at $570, up $5.50.

Read Also

Alberta harvest just ahead of average pace

The harvesting of all crops in Alberta reached 42 per cent complete as of Sept. 9, compared to the five-year average of 40 per cent. The provincial agriculture department noted combing was highlighted by little or no rain.

Wheat was hammered lower by improving moisture in the U.S. Plains and Midwest. Rain is expected in the dry plains this weekend. That weighed on corn.

U.S. traders were busy squaring up positions ahead of Friday’s USDA supply and demand report.

USDA will likely increase its estimates for U.S. wheat and corn inventories from last month and trim its outlook for soybean supplies, according to a poll of analysts done by Reuters.

Soft wheat is now priced lower than corn and that prompted ethanol maker Poet to switch its plant at Portland, Indiana to wheat.

Brazilian dockworkers are planning a strike March 19.

Dorab Mistry, the most watched palm oil analyst, told an industry conference in Malaysia that he expects palm to fall this year.

He expects the price to be down about 17 perent by July-August as world oilseed supply is set to increase. However, he expects palm oil prices will not fall more than 25 percent so long as Brent crude oil does not fall below $80 per barrel. It is now trading around $111.

Palm fell 23 percent last year on record supplies

Closing prices

Canadian prices in dollars per tonne.

Winnipeg ICE Futures

Canola Mar 13 $644.1 +$8.20 +1.29%

Canola May 13 $634.6 +$6.20 +0.99%

Canola Jul 13 $622.5 +$3.80 +0.61%

Canola Nov 13 $570 +$5.50 +0.97%

Milling Wheat Mar 13 $291, unchanged

Milling Wheat May 13 $294, unchanged

Milling Wheat Jul 13 $296, unchanged

Milling Wheat Oct 13 $296, unchanged

Durum Wheat Mar 13 $307, unchanged

Durum Wheat May 13 $311, unchanged

Durum Wheat Jul 13 $314, unchanged

Durum Wheat Oct 13 $299.3, unchanged

Barley Mar 13 $241.5, unchanged

Barley May 13 $242.5, unchanged

Barley Jul 13 $243, unchanged

Barley Oct 13 $243, unchanged

American crop prices are listed in pennies per bushel

Chicago

Soybeans (P) Mar 13 1484.5 -12.0 -0.80%

Soybeans (P) May 13 1466 -0.5 -0.03%

Soybeans (P) Jul 13 1448.75 +1.0 +0.07%

Soybeans (P) Aug 13 1408.5 +2.0 +0.14%

Soybeans (P) Sep 13 1331.5 +0.5 +0.04%

Soybeans (P) Nov 13 1278.75 +2.5 +0.20%

Corn (P) Mar 13 708 -24.0 -3.28%

Corn (P) May 13 688.5 -20.5 -2.89%

Corn (P) Jul 13 671.75 -14.25 -2.08%

Corn (P) Sep 13 567.25 -9.75 -1.69%

Corn (P) Dec 13 544.25 -7.75 -1.40%

Oats (P) Mar 13 394.75 -2.75 -0.69%

Oats (P) May 13 384.25 -4.5 -1.16%

Oats (P) Jul 13 378.75 -5.0 -1.30%

Oats (P) Sep 13 370 -5.25 -1.40%

Oats (P) Dec 13 363 -5.0 -1.36%

Minneapolis (per bushel)

Spring Wheat Mar 13 802 -6.0 -0.74%

Spring Wheat May 13 783.5 -12.25 -1.54%

Spring Wheat Jul 13 782.25 -18.0 -2.25%

Spring Wheat Sep 13 783 -16.0 -2.00%

Spring Wheat Dec 13 789.75 -15.5 -1.92%

The Bank of Canada noon rate for the loonie was 96.96 cents US, down from 97.18 on Tuesday. The U.S. buck was $1.0314.

Analysts believe the lagging Canadian economy will cause the loonie to decline further in the near term.

In early tallies —

The Toronto Stock Exchange’s S&P/TSX composite index rose 95.92 points, or 0.75 percent, at 12,831.96.

The Dow Jones industrial average rose 42.47 points, or 0.30 percent, to finish at 14,296.24.

The Standard & Poor’s 500 Index rose 1.67 points, or 0.11 percent, to close at 1,541.46.

The Nasdaq Composite Index slid 1.77 points, or 0.05 percent, finishing at 3,222.36

Your reading list