Weak loonie supports canola; wheat up on frosty forecast

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Published: February 19, 2014

The loonie fell almost one cent, helping canola futures post another gain on Wednesday.

Nearby oats futures jumped up the 20 cents a bushel limit on tight supply in the contract delivery area.

Wheat and corn rose but soybeans settled lower after setting a five-month high earlier in the day.

In canola, speculators had to cover their short positions, which helped lift the March contract $3.50 to $411.40.

Continuing transportation problems in Canada act as a drag on any rally in canola.

The loonie fell because of a weaker than expected December Canadian wholesale sales report. Also, the U.S. dollar rallied against most currencies.

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Detail from the front of the CBOT building in Chicago. (Vito Palmisano/iStock/Getty Images)

U.S. grains: Corn futures edge up, soybeans sag on improving US crop ratings

Chicago Board of Trade corn futures extended slight gains on Tuesday as short covering and bargain buying continued to support a rebound from contract lows reached during the previous session.

Minutes from the U.S. Federal Reserve’s rate setting committee meeting in January showed broad agreement among members that the pace in tapering the bond buying program is appropriate. It also showed the consensus was that the Fed should not raise interest rates until 2015.

In soybeans, March traded as high as 13.71¾ a bushel before profit taking kicked in. A slight increase in farmer selling pressured cash prices which in turn weighed on the futures price.

There was some rain in northeastern Brazil, relieving crop stress there. However, it is expected to turn warmer and drier over the next 10 days.

Unlike other Brazilian forecasters that have been trimming their outlook for that country’s soybean crop, Abiove, the crushing industry there, increased its outlook to 88.6 million tonnes, up one million tonnes.

Wheat rose on the forecast for more icy weather in the U.S. plains next week after warm weather this week melts the protective layer of snow.

Corn rose one percent, partly on expectations that USDA will lower the expected seeded acreage forecast for 2014 at its outlook conference running Thursday and Friday.

 

Winnipeg ICE Futures Canada dollars per tonne

 

Canola Mar 2014       411.40       +3.50       +0.86%

Canola May 2014       421.90       +3.70       +0.88%

Canola Jul 2014       431.60       +3.70       +0.86%

Canola Nov 2014       449.10       +3.90       +0.88%

Canola Jan 2015       456.60       +4.10       +0.91%

 

Milling Wheat Mar 2014       200.00       +1.00       +0.50%

Milling Wheat May 2014       198.00       +1.00       +0.51%

Milling Wheat Jul 2014       199.00       +2.00       +1.02%

 

Durum Wheat Mar 2014       245.00       unch       0.00%

Durum Wheat May 2014       249.00       unch       0.00%

Durum Wheat Jul 2014       250.00       unch       0.00%

 

Barley Mar 2014       126.50       unch       0.00%

Barley May 2014       128.50       unch       0.00%

Barley Jul 2014       128.50       unch       0.00%

 

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

 

Chicago

Soybeans Mar 2014       1354.25       -6.75       -0.50%

Soybeans May 2014       1342       -5.75       -0.43%

Soybeans Jul 2014       1324.75       -5.5       -0.41%

Soybeans Aug 2014       1274.25       -2.75       -0.22%

Soybeans Sep 2014       1192       -1.5       -0.13%

Soybeans Nov 2014       1137       -1       -0.09%

 

Soybean Meal Mar 2014       453       -3.9       -0.85%

Soybean Meal May 2014       436.5       -1.6       -0.37%

Soybean Meal Jul 2014       423       -1.9       -0.45%

 

Soybean Oil Mar 2014       40.24       -0.12       -0.30%

Soybean Oil May 2014       40.52       -0.14       -0.34%

Soybean Oil Jul 2014       40.8       -0.14       -0.34%

 

Corn Mar 2014       453.75       +4.25       +0.95%

Corn May 2014       460.25       +4.75       +1.04%

Corn Jul 2014       464.75       +4.75       +1.03%

Corn Sep 2014       465.25       +4.5       +0.98%

Corn Dec 2014       468.25       +4.5       +0.97%

 

Oats Mar 2014       448.75       +20       +4.66%

Oats May 2014       413.75       +20       +5.08%

Oats Jul 2014       370.25       +19.75       +5.63%

Oats Sep 2014       340       +11.5       +3.50%

Oats Dec 2014       319.5       +11.5       +3.73%

 

Wheat Mar 2014       620.25       +8.25       +1.35%

Wheat May 2014       613.5       +6       +0.99%

Wheat Jul 2014       617       +5.75       +0.94%

Wheat Sep 2014       625.5       +6       +0.97%

Wheat Dec 2014       637.5       +6       +0.95%

 

Minneapolis

Spring Wheat Mar 2014       684       +4.75       +0.70%

Spring Wheat May 2014       659.5       +3.75       +0.57%

Spring Wheat Jul 2014       662       +4.25       +0.65%

Spring Wheat Sep 2014       669       +4.5       +0.68%

Spring Wheat Dec 2014       679.75       +4.75       +0.70%

 

Kansas City

KCBT Red Wheat Mar 2014       692.5       +6.75       +0.98%

KCBT Red Wheat May 2014       681.75       +5.75       +0.85%

KCBT Red Wheat Jul 2014       673.5       +6.25       +0.94%

KCBT Red Wheat Sep 2014       679.75       +5.75       +0.85%

KCBT Red Wheat Dec 2014       690       +5.5       +0.80%

 

Light crude oil nearby futures in New York rose 88 cents at $103.31 US per barrel.

The Canadian dollar at noon was 90.54 cents US, down from 91.30 cents the previous trading day. The U.S. dollar at noon was $1.1045 Cdn.

In unofficial tallies —

The Toronto Stock Exchange’s S&P/TSX composite index closed up 42.26 points, or 0.30 percent, at 14,119.73.

The Dow Jones industrial average fell 89.84 points or 0.56 percent, to end at 16,040.56.

The S&P 500 lost 12.01 points or 0.65 percent, to finish at 1,828.75.

The Nasdaq Composite dropped 34.83 points or 0.82 percent, to close at 4,237.954.

About the author

D'Arce McMillan

Markets editor, Saskatoon newsroom

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