Export talk lifts canola futures

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Published: October 22, 2013

The advancing U.S. harvest pressured soybeans and corn lower but canola edged higher on Tuesday, supported by talk of fresh exports.

Short covering also supported canola. That is when traders that hold sell positions in the market wait until the price falls. The trader then buys an equal amount of the commodity, making a profit on the difference between the sell position and the lower buy position.

Canola also has technical strength closing above the 20- and five-day moving averages.

November canola closed at $491.40, up $2.40.

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U.S. grains: Corn, soybeans extend losses as Midwest weather looks crop-friendly

Chicago Board of Trade corn futures extended session losses on Tuesday, weighed down by forecasts for crop-friendly rain in U.S. grain belts this week.

Rising palm oil futures supported vegetable oil values, although soy oil closed lower.

Reuters reported industry sources said figures from the Malaysian Palm Oil Association, a group of planters, showed that production Oct. 1-20 dropped 10.5 percent.

An output fall would make September the highest-producing month this year and ease fears that palm oil stocks will surge in the coming months as bumper supply of global oilseeds from U.S and South America flood the market, Reuters reported.

Wheat edged higher on bargain buying after Monday’s decline and on solid demand for high protein wheat.

Corn and soybeans fell on U.S. harvest progress and talk of stronger than expected yields.

After the close of trade on Monday the USDA pegged U.S. corn conditions at 60 percent good-to-excellent, up from 55 percent at the end of September.

It said 39 percent of the corn crop had been harvested as of Sunday.

The soybean harvest was 63 percent done, below the five-year average of 69 percent but roughly in line with trade expectations.

It said 57 percent of the soybean crop as good to excellent, up from 53 percent as of Sept. 29.

USDA will update its domestic and world supply and demand forecasts on Nov. 8.

Brazilian analysts AgRural said soybean planting in that country was 19 percent complete as of Oct. 18, about the same as last year.

Russia’s agriculture ministry said drier weather is helping farmers catch up with seeding, but the area that likely will be seeded will be less than expected earlier this year.

The department expects 34.5 million acres will be sown with winter grains, down from the original forecast of 40.5 million.

As of Oct. 18, seeded area stood at 32 million acres. Last year, 38 million acres had been sown by the same date.

 

Winnipeg ICE Futures Canada dollars per tonne

 

Canola Nov 2013       491.40       +2.40       +0.49%

Canola Jan 2014       502.10       +2.40       +0.48%

Canola Mar 2014       510.90       +2.60       +0.51%

Canola May 2014       517.80       +2.60       +0.50%

Canola Jul 2014       523.20       +2.30       +0.44%

 

Milling Wheat Dec 2013       238.00       unch       0.00%

Milling Wheat Mar 2014       244.00       -1.00       -0.41%

Milling Wheat May 2014       248.00       -3.00       -1.20%

 

Durum Wheat Dec 2013       247.00       unch       0.00%

Durum Wheat Mar 2014       253.00       unch       0.00%

Durum Wheat May 2014       257.00       unch       0.00%

 

Barley Dec 2013       152.00       unch       0.00%

Barley Mar 2014       154.00       unch       0.00%

Barley May 2014       155.00       unch       0.00%

 

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

 

Chicago

Soybeans Nov 2013       1302.25       -1       -0.08%

Soybeans Jan 2014       1297.5       -3       -0.23%

Soybeans Mar 2014       1278       -3.75       -0.29%

Soybeans May 2014       1260.5       -4       -0.32%

Soybeans Jul 2014       1256.75       -3.75       -0.30%

Soybeans Aug 2014       1245.5       -3.25       -0.26%

 

Soybean Meal Dec 2013       416.1       +0.4       +0.10%

Soybean Meal Jan 2014       409.6       -0.6       -0.15%

Soybean Meal Mar 2014       397.9       -1.5       -0.38%

 

Soybean Oil Dec 2013       41.52       -0.12       -0.29%

Soybean Oil Jan 2014       41.83       -0.12       -0.29%

Soybean Oil Mar 2014       42.22       -0.14       -0.33%

 

Corn Dec 2013       438.25       -5.75       -1.30%

Corn Mar 2014       451       -5.75       -1.26%

Corn May 2014       459.25       -6       -1.29%

Corn Jul 2014       467       -5       -1.06%

Corn Sep 2014       473.25       -4.5       -0.94%

 

Oats Dec 2013       341.25       +4.75       +1.41%

Oats Mar 2014       317.25       +2.75       +0.87%

Oats May 2014       316.5       +3.25       +1.04%

Oats Jul 2014       312.75       +3.75       +1.21%

Oats Sep 2014       311.75       +3.75       +1.22%

 

Wheat Dec 2013       700.75       +1       +0.14%

Wheat Mar 2014       710.75       +1       +0.14%

Wheat May 2014       713.75       +1       +0.14%

Wheat Jul 2014       702.75       +2.75       +0.39%

Wheat Sep 2014       707.75       +2.75       +0.39%

 

Minneapolis

Spring Wheat Dec 2013       756.25       +4.5       +0.60%

Spring Wheat Mar 2014       766.25       +4.75       +0.62%

Spring Wheat May 2014       772.75       +4.75       +0.62%

Spring Wheat Jul 2014       771.5       +3.5       +0.46%

Spring Wheat Sep 2014       767.5       +0.5       +0.07%

 

Kansas City

KCBT Red Wheat Dec 2013       765.5       +4.25       +0.56%

KCBT Red Wheat Mar 2014       765       +4.5       +0.59%

KCBT Red Wheat May 2014       763       +4.25       +0.56%

KCBT Red Wheat Jul 2014       744.5       +3       +0.40%

KCBT Red Wheat Sep 2014       750.25       +2       +0.27%

 

Light crude oil nearby futures in New York dropped $1.42 at $97.80 US per barrel.

 

The Canadian dollar at noon was 97.24 cents US, up from 97.12 cents the previous trading day. The U.S. dollar at noon was $1.0284 Cdn.

U.S. job growth in September was less than expected at 148,000. The tepid growth increased the expectation that the U.S. Federal Reserve will continue its stimulus bond buying program. Markets like the stimulus and share prices rose

The Toronto Stock Exchange composite index rose 61.53 points or 0.47 percent to 13,248.06.

The Dow Jones industrial average was up 75.78 points, or 0.49 percent, at 15,467.98.

The Standard & Poor’s 500 Index was up 10.05 points, or 0.58 percent, at 1,754.71.

The Nasdaq Composite Index was up 9.52 points, or 0.24 percent, at 3,929.57.

About the author

D'Arce McMillan

Markets editor, Saskatoon newsroom

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