By D’Arce McMillan
Markets editor
Twitter @ darcemcmillan
Soy meal futures jumped six percent higher Wednesday and dragged canola, soybeans, corn and wheat higher.
It is the same story that played out repeatedly this week.
There is good demand for soy meal but American farmers are not rushing to deliver. Also, rail congestion is slowing the movement of soybeans to crushers and to export points.
Traders had early staked out positions on the short side of the market and now that the price is rising instead of falling, traders are liquidating those short positions. It’s called a short squeeze.
Soy oil also rose, supported by the rise in meal and stronger crude oil values as well as Malaysia’s plan to add more palm oil to its biodiesel program.
That helped November canola rise to a two and half month high, gaining $10.70 to $444.40 per tonne. Most traded January rose $6.50 TO $431.50.
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December corn rose about three percent, supported by soybeans, but also by weekly ethanol data showing production up and stocks down, indicating strong demand for the bio fuel.
Wheat was up, with Chicago leading the way. December Chicago climbed 1.4 percent and Minneapolis up one percent.
Corn helped lift wheat, but there is also concern about dry cold weather stressing the Russian winter wheat crop.
Light crude oil nearby futures in New York rose 78 cents at $82.20 US per barrel.
The Canadian dollar at noon was 89.80 cents US, up from 89.46 cents the previous trading day. The U.S. dollar at noon was $1.1136 Cdn.
Gold and gold miner shares fell after the U.S. Federal Reserve ended its bond-buying program and expressed optimism about U.S. economic recovery.
The Toronto Stock Exchange’s S&P/TSX composite index closed down 96.68 points, or 0.66 percent, at 14,527.57.
The Dow Jones industrial average fell 31.44 points, or 0.18 percent, to 16,974.31, the S&P 500 lost 2.75 points, or 0.14 percent, to 1,982.3 and the Nasdaq Composite dropped 15.07 points, or 0.33 percent, to 4,549.23.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2014 444.40 +10.70 +2.47%
Canola Jan 2015 431.50 +6.50 +1.53%
Canola Mar 2015 431.50 +6.80 +1.60%
Canola May 2015 433.60 +6.90 +1.62%
Canola Jul 2015 434.40 +7.20 +1.69%
Milling Wheat Dec 2014 227.00 +2.00 +0.89%
Milling Wheat Mar 2015 233.00 +2.00 +0.87%
Milling Wheat May 2015 237.00 +3.00 +1.28%
Durum Wheat Dec 2014 356.50 unch 0.00%
Durum Wheat Mar 2015 357.50 unch 0.00%
Durum Wheat May 2015 357.50 unch 0.00%
Barley Dec 2014 140.00 unch 0.00%
Barley Mar 2015 143.00 unch 0.00%
Barley May 2015 143.00 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 2014 1043 +35 +3.47%
Soybeans Jan 2015 1049 +34 +3.35%
Soybeans Mar 2015 1056 +35 +3.43%
Soybeans May 2015 1062.75 +35 +3.41%
Soybeans Jul 2015 1069.25 +36 +3.48%
Soybeans Aug 2015 1067.75 +36.25 +3.51%
Soybean Meal Dec 2014 397.2 +22.1 +5.89%
Soybean Meal Jan 2015 374.6 +16.9 +4.72%
Soybean Meal Mar 2015 352.2 +10.2 +2.98%
Soybean Oil Dec 2014 34.18 +1.39 +4.24%
Soybean Oil Jan 2015 34.41 +1.39 +4.21%
Soybean Oil Mar 2015 34.68 +1.39 +4.18%
Corn Dec 2014 375.25 +10.75 +2.95%
Corn Mar 2015 388.5 +10.5 +2.78%
Corn May 2015 397 +10.25 +2.65%
Corn Jul 2015 403.5 +9.75 +2.48%
Corn Sep 2015 409.25 +8.75 +2.18%
Oats Dec 2014 350.5 -5.5 -1.54%
Oats Mar 2015 341.5 -1.5 -0.44%
Oats May 2015 334.5 -2 -0.59%
Oats Jul 2015 327.25 -1.5 -0.46%
Oats Sep 2015 330.5 -0.25 -0.08%
Wheat Dec 2014 538.25 +7.5 +1.41%
Wheat Mar 2015 551 +6.5 +1.19%
Wheat May 2015 558 +5.5 +1.00%
Wheat Jul 2015 565.75 +5.25 +0.94%
Wheat Sep 2015 576 +5.25 +0.92%
Minneapolis
Spring Wheat Dec 2014 582.5 +5.75 +1.00%
Spring Wheat Mar 2015 592.5 +6 +1.02%
Spring Wheat May 2015 601.25 +7 +1.18%
Spring Wheat Jul 2015 610.5 +7.5 +1.24%
Spring Wheat Sep 2015 618.5 +7.75 +1.27%
Kansas City
Hard Red Wheat Dec 2014 606.5 +4.75 +0.79%
Hard Red Wheat Mar 2015 611.25 +5.5 +0.91%
Hard Red Wheat May 2015 612.5 +6.75 +1.11%
Hard Red Wheat Jul 2015 606.25 +6.75 +1.13%
Hard Red Wheat Sep 2015 615.75 +6.75 +1.11%
