Canola was higher for part of the morning but could not avoid the downdraft caused by fall soy oil and the rest of the soy complex.
Wheat futures performed the best in a down market, still supported by concerns about wheat crops in Russia and Ukraine and confirmation from Australia that drought has trimmed its crop.
January canola closed down about 1.5 percent, pressured by a three percent fall in soy oil, reeling under the weakness in crude oil, and good weather in South America’s soy growing regions.
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Canola’s early strength came from end user demand and the idea that canola is underpriced relative to soybeans.
But outside pressure came from a steep decline in palm oil, which suffered because of slowing palm exports and weakness in crude oil.
That spilled over into soy oil markets. The soy complex was also under pressure from welcome rain forecast for central and southern Brazil. A drier week is welcome in Argentina after a rainy weekend.
Also, a ramp up in soy crushing in the U.S., driven by demand for meal, has led to a surplus of soy oil.
Most wheat contracts were lower after the strong rally Monday, sparked by talk of potential export restrictions that pushed values up to the highest level in six months.
December Minneapolis did rise on
Modest support came from the latest crop report from the Australian Bureau of Agricultural and Resource Economics.
It pegged the wheat crop at 23.22 million tonnes, down four percent from the September report and down 14 percent from last year.
It put canola at 3.3 million tonnes, down three percent fro September and down 12 from last year.
Barley at 7.4 million tonnes is down 1.3 percent from the September report and down 22 percent from last year.
Corn fell more than two percent on technical factors and good weather in South America.
Light crude oil nearby futures in New York fell to US$66.88, down $2.12 per barrel.
The Canadian dollar at noon was US87.72 cents, down from 88.15 cents the previous trading day. The U.S. dollar at noon was C$1.1400.
The TSX composite dipped 5.24 points or 0.04 percent to 14,620.07.
The Dow Jones industrial average rose 102.75 points, or 0.58 percent, to 17,879.55, the S&P 500 gained 13.11 points, or 0.64 percent, to 2,066.55 and the Nasdaq Composite added 28.46 points, or 0.6 percent, to 4,755.81.
Carmaker shares advanced as the top six automakers sold more cars and trucks in November than analysts expected.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jan 2015 416.90 -5.50 -1.30%
Canola Mar 2015 415.30 -6.70 -1.59%
Canola May 2015 416.90 -6.70 -1.58%
Canola Jul 2015 418.10 -6.70 -1.58%
Canola Nov 2015 415.00 -5.60 -1.33%
Milling Wheat Dec 2014 239.00 -4.00 -1.65%
Milling Wheat Mar 2015 247.00 -4.00 -1.59%
Milling Wheat May 2015 250.00 -3.00 -1.19%
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 172.00 -2.00 -1.15%
Barley Mar 2015 175.00 -2.00 -1.13%
Barley May 2015 177.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jan 2015 995.75 -21.25 -2.09%
Soybeans Mar 2015 1003 -21 -2.05%
Soybeans May 2015 1010 -20.75 -2.01%
Soybeans Jul 2015 1014.75 -20.5 -1.98%
Soybeans Aug 2015 1014.25 -20.5 -1.98%
Soybeans Sep 2015 994.25 -18.5 -1.83%
Soybean Meal Dec 2014 383.1 -1.3 -0.34%
Soybean Meal Jan 2015 357.9 -4.1 -1.13%
Soybean Meal Mar 2015 343.2 -5.9 -1.69%
Soybean Oil Dec 2014 31.17 -1.05 -3.26%
Soybean Oil Jan 2015 31.28 -1.08 -3.34%
Soybean Oil Mar 2015 31.53 -1.02 -3.13%
Corn Dec 2014 367.75 -7.75 -2.06%
Corn Mar 2015 381.25 -8.5 -2.18%
Corn May 2015 389.75 -8.5 -2.13%
Corn Jul 2015 396.75 -8.25 -2.04%
Corn Sep 2015 401.5 -8.5 -2.07%
Oats Dec 2014 296 +0.25 +0.08%
Oats Mar 2015 308.5 +2.25 +0.73%
Oats May 2015 310.5 +1 +0.32%
Oats Jul 2015 313.5 +2 +0.64%
Oats Sep 2015 312 -6.25 -1.96%
Wheat Dec 2014 605.25 -1.5 -0.25%
Wheat Mar 2015 603.25 -3.5 -0.58%
Wheat May 2015 608.75 -3.75 -0.61%
Wheat Jul 2015 612.75 -3.75 -0.61%
Wheat Sep 2015 619.75 -3.75 -0.60%
Minneapolis
Spring Wheat Dec 2014 656 +6 +0.92%
Spring Wheat Mar 2015 632.5 -5.25 -0.82%
Spring Wheat May 2015 639.75 -5.25 -0.81%
Spring Wheat Jul 2015 647.5 -4 -0.61%
Spring Wheat Sep 2015 654.5 -3.5 -0.53%
Kansas
Hard Red Wheat Dec 2014 648.75 -11.5 -1.74%
Hard Red Wheat Mar 2015 652.25 -12 -1.81%
Hard Red Wheat May 2015 655 -10 -1.50%
Hard Red Wheat Jul 2015 654 -6 -0.91%
Hard Red Wheat Sep 2015 663.5 -6 -0.90%
