CHICAGO/WINNIPEG (Reuters) — ICE Canada canola futures rose on Wednesday due to short-covering by exporters and with spillover support from U.S. soy markets.
Nearby May contract stayed above the closely watched 50-day moving average.
May canola gained $5.80 at $462.90 per tonne.
July canola added $5.30 at $459.40 per tonne.
U.S. soybean, wheat and corn futures rose with the U.S. Federal Reserve announcement that it will be less patient in normalizing monetary policy, resulting in the prospect of an interest rate hike becoming more solid.
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That jolted the market to session highs late in the trading day.
Bargain buying and short covering also were supportive factors for agricultural commodities.
The Federal Reserve’s move, which opened the door further for an interest rate hike, sent the U.S. dollar sharply lower, a bullish factor for U.S. commodities.
“The late collapse in the dollar helped bring the grain markets back to the plus side,” said Greg Grow, director of agribusiness at Archer Financial Services.
Wheat futures, which are most sensitive to moves in the dollar because overseas supplies are priced in local currencies, received the biggest boost after trading in negative territory for much of the day.
Chicago Board of Trade May soybeans settled up US10 1/2 cents at $9.65 a bushel.
CBOT May corn was 3 3/4 cents higher at $3.74 3/4 a bushel. The front-month corn contract hit its lowest since Jan. 30 early in the session.
CBOT May wheat gained 7 1/4 cents to close at $5.10 3/4 a bushel, breaking through its 30-day moving average ahead of the close.
But dim export prospects continue to hang over the market as the corn and soybean harvests in Brazil and Argentina neared the halfway point.
“Ships are lined up and getting loaded there,” commodity brokerage INTL FCStone said in a note to clients.
“Domestic U.S. demand is still good, but exports down the road look limited if not on the verge of being moved to South America.”
Traders also were closely monitoring U.S. weather forecasts as planting starts in southern growing areas.
A survey released by Farm Futures magazine forecast U.S. soy acreage at a record 87.25 million. Corn plantings were seen at 88.34 million acres.
Light crude oil nearby futures in New York were up $1.20 to US$44.66 per barrel.
The Canadian dollar at noon was US78.30 cents, down from 78.31 cents the previous trading day. The U.S. dollar at noon was C$1.2771.
Major U.S. stock indexes were all up one percent or more in late trade. The Toronto Stock Exchange composite was up about 0.3 percent.
Winnipeg ICE Futures Canada dollars per tonne
Canola May 2015 462.90 +5.80 +1.27%
Canola Jul 2015 459.40 +5.30 +1.17%
Canola Nov 2015 449.00 +5.60 +1.26%
Canola Jan 2016 450.10 +5.60 +1.26%
Canola Mar 2016 452.70 +5.60 +1.25%
Milling Wheat May 2015 241.00 +3.00 +1.26%
Milling Wheat Jul 2015 243.00 +3.00 +1.25%
Milling Wheat Oct 2015 246.00 +3.00 +1.23%
Durum Wheat May 2015 323.00 unch 0.00%
Durum Wheat Jul 2015 313.00 unch 0.00%
Durum Wheat Oct 2015 318.00 unch 0.00%
Barley May 2015 188.00 +4.00 +2.17%
Barley Jul 2015 190.00 +4.00 +2.15%
Barley Oct 2015 181.00 +4.00 +2.26%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans May 2015 965 +10.5 +1.10%
Soybeans Aug 2015 969.25 +10 +1.04%
Soybeans Sep 2015 956.5 +10.75 +1.14%
Soybeans Nov 2015 950.75 +10.75 +1.14%
Soybeans Jan 2016 955.5 +10.5 +1.11%
Soybean Meal May 2015 320.8 +3.3 +1.04%
Soybean Meal Jul 2015 319 +3.1 +0.98%
Soybean Meal Aug 2015 317.7 +2.4 +0.76%
Soybean Oil May 2015 30.63 +0.59 +1.96%
Soybean Oil Jul 2015 30.83 +0.59 +1.95%
Soybean Oil Aug 2015 30.9 +0.58 +1.91%
Corn May 2015 374.75 +3.75 +1.01%
Corn Jul 2015 382.75 +3.75 +0.99%
Corn Sep 2015 390.5 +3.75 +0.97%
Corn Dec 2015 400 +3.25 +0.82%
Corn Mar 2016 409.5 +2.75 +0.68%
Oats May 2015 273.25 +2.25 +0.83%
Oats Jul 2015 275.5 +2 +0.73%
Oats Sep 2015 277.25 +1.75 +0.64%
Oats Dec 2015 279.5 +4.75 +1.73%
Oats Mar 2016 283.25 +2.75 +0.98%
Wheat May 2015 510.75 +7.25 +1.44%
Wheat Jul 2015 514.25 +7.5 +1.48%
Wheat Sep 2015 524 +7.5 +1.45%
Wheat Dec 2015 538.5 +7.75 +1.46%
Wheat Mar 2016 551.75 +8 +1.47%
Minneapolis
Spring Wheat May 2015 578 +8.25 +1.45%
Spring Wheat Jul 2015 582.25 +7 +1.22%
Spring Wheat Sep 2015 590.25 +7 +1.20%
Spring Wheat Dec 2015 600 +7 +1.18%
Spring Wheat Mar 2016 611.75 +6.75 +1.12%
Kansas City
Hard Red Wheat May 2015 553 +10.25 +1.89%
Hard Red Wheat Jul 2015 558.75 +10.25 +1.87%
Hard Red Wheat Sep 2015 570.5 +10 +1.78%
Hard Red Wheat Dec 2015 586.5 +10 +1.73%
Hard Red Wheat Mar 2016 598.5 +9.5 +1.61%
