Canola edges higher as technical factors dominate trade

Canola held on to the gains posted Tuesday, supported by rising soybeans, soy oil and a weaker loonie.

Wheat fell, mostly on technical factors. Corn edged lower after an early rally triggered profit taking.

The March oats contract hit new record highs as desperate American processors try to attract oats trapped by Western Canada’s rail inadequacies.

At one point March oats were up the 30 cent limit with funds piling on, but closed just 3.75 cents higher at a record $5.06 ¾ US a bushel.

March oats are at a whopping 46 cent premium over May.

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In canola, the most traded May contract touched the 30-day moving average but then fell, closing at $425.50 CDN per tonne, up 50 cents. If the contract can close above the moving average, it might trigger fund buying, Reuters reported.

Chicago wheat fell 2.4 percent on technical pressure after failing to break through resistance at $6.20 per bu.

Also, the market worries that U.S. export business might fall off, noting that Egypt cancelled orders for 110,000 tonnes of U.S. soft wheat yesterday. But declines were limited by worries about the state of the U.S. hard red winter wheat crop.

USDA will issue new monthly updates on condition of winter wheat crop in Kansas, Oklahoma and Texas on Monday afternoon.

Bloomberg reported that China’s demand for corn and soy meal might not grow this year as hog prices fall there and spreading bird flu reduces demand for poultry even though eating poultry does not spread the disease.

Winnipeg ICE Futures Canada dollars per tonne

Canola Mar 2014 415.50 +0.40 +0.10%

Canola May 2014 425.50 +0.50 +0.12%

Canola Jul 2014 435.30 +0.30 +0.07%

Canola Nov 2014 452.20 unch 0.00%

Canola Jan 2015 459.40 unch 0.00%

Milling Wheat Mar 2014 193.00 -2.00 -1.03%

Milling Wheat May 2014 194.00 -3.00 -1.52%

Milling Wheat Jul 2014 195.00 -3.00 -1.52%

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 1407.25 +8.25 +0.59%

Soybeans May 2014 1397 +9.75 +0.70%

Soybeans Jul 2014 1373.25 +3.25 +0.24%

Soybeans Aug 2014 1323.75 +3.25 +0.25%

Soybeans Sep 2014 1234.25 +3.5 +0.28%

Soybeans Nov 2014 1169.25 +1.75 +0.15%

Soybean Meal Mar 2014 468.3 -1.3 -0.28%

Soybean Meal May 2014 453.7 unch 0.00%

Soybean Meal Jul 2014 440 -0.4 -0.09%

Soybean Oil Mar 2014 41.2 +0.62 +1.53%

Soybean Oil May 2014 41.46 +0.61 +1.49%

Soybean Oil Jul 2014 41.62 +0.53 +1.29%

Corn Mar 2014 455.5 -0.25 -0.05%

Corn May 2014 461 -0.25 -0.05%

Corn Jul 2014 464.75 -0.5 -0.11%

Corn Sep 2014 463.5 -1.5 -0.32%

Corn Dec 2014 466.5 -1.25 -0.27%

Oats Mar 2014 506.75 +3.75 +0.75%

Oats May 2014 460.75 -7.5 -1.60%

Oats Jul 2014 403.75 -10.25 -2.48%

Oats Sep 2014 348.5 +0.25 +0.07%

Oats Dec 2014 339.75 +2.5 +0.74%

Wheat Mar 2014 600 -15 -2.44%

Wheat May 2014 605.5 -12.5 -2.02%

Wheat Jul 2014 611 -12.75 -2.04%

Wheat Sep 2014 619.25 -13 -2.06%

Wheat Dec 2014 632 -13 -2.02%

Minneapolis

Spring Wheat Mar 2014 670.25 -3.75 -0.56%

Spring Wheat May 2014 654.5 -7.5 -1.13%

Spring Wheat Jul 2014 657.75 -8 -1.20%

Spring Wheat Sep 2014 665.5 -8 -1.19%

Spring Wheat Dec 2014 676.75 -8.75 -1.28%

Kansas City

KCBT Red Wheat Mar 2014 679 -11.5 -1.67%

KCBT Red Wheat May 2014 680 -11 -1.59%

KCBT Red Wheat Jul 2014 676.25 -9.75 -1.42%

KCBT Red Wheat Sep 2014 682 -10 -1.45%

KCBT Red Wheat Dec 2014 692 -10.25 -1.46%

Light crude oil nearby futures in New York rose 76 cents at $102.59 US per barrel.

The Canadian dollar at noon was 89.95 cents US, down from 90.22 cents the previous trading day. The U.S. dollar at noon was $1.1117 Cdn.

In early tallies —

The Toronto Stock Exchange’s S&P/TSX composite index closed down 0.40 of a point at 14,188.58.

U.S. indexes were mostly flat with the Dow up 0.12 percent at 16,198.41, the S&P 500 unchanged at 1,845.16 and the Nasdaq up 0.10 percent at 4,292.06.

A report showing that sales of new U.S. single-family homes hit a 5 ½ year high in January lifted traders’ spirits.

U.S. Federal Reserve chair Janet Yellen addresses the Senate banking committee in semi-annual testimony about monetary policy. Traders will watch to see if she says anything to shift expectations after trimming its stimulus policy or about how the cold winter has affected the U.S. economy.