Crop futures including canola edged higher Tuesday, brushing off a 5.5 percent plunge in crude oil futures, with West Texas crude again below US$30.
Hopes that Russia and OPEC members would negotiate a production reduction are fading, putting renewed pressure on oil. Global equity markets sagged along with oil.
But canola, soybeans, corn and wheat rose modestly, posting gains of less than one percent.
Canola’s gain halted a three-day slide.
The market awaits Statistics Canada’s Dec. 31 stocks report to help it determine just how much canola and other crops are around this year.
Some analysts think Statistics Canada’s final crop report of the season, issued in early December, overstated the size of the canola crop.
There was little market moving news in the grains area to account for today’s rally and most of the movement was related to technical trading and short covering.
Kansas, Nebraska and Iowa are getting snow from the blizzard moving northeast across the central United States today. Rain is falling in the eastern Midwest.
The weather caused some livestock packing plants to close.
The condition of the U.S. winter wheat crop is generally good: Wheat ratings improve in Kansas, Illinois in January
We also have an update on oats futures: Oats trade looks to StatsCan stocks report for direction
Egypt, one of the world’s largest wheat buyers, has the trade frustrated over its new ergot acceptance policy.
Reuters reports Egypt’s agricultural quarantine authorities have adopted a zero-tolerance line, which is at odds with a limit allowed by state wheat buyer GASC.
Traders say such a standard is unworkable.
Under pressure from the quarantine authority, GASC rejected a 63,000 tonne wheat shipment this week for containing traces of ergot fungus. The amount was less than the 0.05 percent threshold normally allowed.
Traders boycotted an Egyptian wheat tender this week in protest. Over concerns that shipments would be rejected at port because of the tough new import standards that do not follow internationally accepted tolerances.
So far, Egypt has rejected three wheat import shipments due to the presence of ergot, a ministry of agriculture spokesman told Reuters on Tuesday.
Egypt imports around 10 million tonnes of wheat each year, most of which goes to providing cheap, subsidized bread to feed its exploding population of 90 million.
Egypt has said it has enough strategic wheat supplies to last until May 11.
However, much of the country’s calculated reserves sit outside Egypt in shipments that still may be rejected, traders said, raising the possibility that reserves could hit critical levels sooner than anticipated.
Light crude oil nearby futures in New York were down $1.74 to US$29.88 per barrel.
The Canadian dollar at noon was US71.23 cents, down from 71.40 cents the previous trading day. The U.S. dollar at noon was C$1.4040.
The TSX closed down about two percent.
Dow Jones industrial average fell 295.16 points, or 1.79 percent, to 16,154.02, the S&P 500 lost 36.33 points, or 1.87 percent, to 1,903.05 and the Nasdaq Composite dropped 103.42 points, or 2.24 percent, to 4,516.95.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2016Â Â 473.80Â Â +2.70Â Â +0.57%
Canola May 2016Â Â 483.30Â Â +2.60Â Â +0.54%
Canola Jul 2016Â Â 489.10Â Â +2.40Â Â +0.49%
Canola Nov 2016Â Â 489.80Â Â +2.30Â Â +0.47%
Canola Jan 2017Â Â 491.60Â Â +2.70Â Â +0.55%
Milling Wheat Mar 2016  235.00  unch  0.00%
Milling Wheat May 2016  238.00  unch  0.00%
Milling Wheat Jul 2016Â Â 242.00Â Â +1.00Â Â +0.41%
Durum Wheat Mar 2016  322.00  unch  0.00%
Durum Wheat May 2016  330.00  unch  0.00%
Durum Wheat Jul 2016  330.00  unch  0.00%
Barley Mar 2016  190.00  unch  0.00%
Barley May 2016  194.00  unch  0.00%
Barley Jul 2016  196.00  unch  0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Mar 2016Â Â 886.25Â Â +5.5Â Â +0.62%
Soybeans May 2016Â Â 888.75Â Â +6.5Â Â +0.74%
Soybeans Jul 2016Â Â 894.75Â Â +7Â Â +0.79%
Soybeans Aug 2016Â Â 896.25Â Â +7Â Â +0.79%
Soybeans Sep 2016Â Â 895Â Â +6.75Â Â +0.76%
Soybeans Nov 2016Â Â 897Â Â +6.75Â Â +0.76%
Soybean Meal Mar 2016Â Â 274.6Â Â +3.6Â Â +1.33%
Soybean Meal May 2016Â Â 276.5Â Â +3.4Â Â +1.24%
Soybean Meal Jul 2016Â Â 278.8Â Â +3.3Â Â +1.20%
Soybean Oil Mar 2016Â Â 30.79Â Â +0.03Â Â +0.10%
Soybean Oil May 2016Â Â 31Â Â +0.04Â Â +0.13%
Soybean Oil Jul 2016Â Â 31.24Â Â +0.04Â Â +0.13%
Corn Mar 2016Â Â 372.5Â Â +1.25Â Â +0.34%
Corn May 2016Â Â 377.5Â Â +1.75Â Â +0.47%
Corn Jul 2016Â Â 382.5Â Â +2Â Â +0.53%
Corn Sep 2016Â Â 387Â Â +2.25Â Â +0.58%
Corn Dec 2016Â Â 394Â Â +2Â Â +0.51%
Oats Mar 2016Â Â 200.25Â Â +3Â Â +1.52%
Oats May 2016Â Â 208Â Â +2Â Â +0.97%
Oats Jul 2016Â Â 214.5Â Â +1.75Â Â +0.82%
Oats Sep 2016Â Â 220Â Â +1.5Â Â +0.69%
Oats Dec 2016Â Â 215.75Â Â +0.25Â Â +0.12%
Wheat Mar 2016  475.25  unch  0.00%
Wheat May 2016Â Â 480Â Â -0.5Â Â -0.10%
Wheat Jul 2016Â Â 485.25Â Â -0.5Â Â -0.10%
Wheat Sep 2016Â Â 493.75Â Â -0.75Â Â -0.15%
Wheat Dec 2016Â Â 507.25Â Â -0.5Â Â -0.10%
Minneapolis
Spring Wheat Mar 2016Â Â 495.75Â Â +0.75Â Â +0.15%
Spring Wheat May 2016Â Â 501.75Â Â +1Â Â +0.20%
Spring Wheat Jul 2016Â Â 509Â Â +1Â Â +0.20%
Spring Wheat Sep 2016Â Â 519.25Â Â +1.25Â Â +0.24%
Spring Wheat Dec 2016Â Â 534Â Â +1Â Â +0.19%
Kansas City
Hard Red Wheat Mar 2016Â Â 465.25Â Â -1.5Â Â -0.32%
Hard Red Wheat May 2016Â Â 475.25Â Â -1.5Â Â -0.31%
Hard Red Wheat Jul 2016Â Â 485.25Â Â -1.75Â Â -0.36%
Hard Red Wheat Sep 2016Â Â 499Â Â -1.75Â Â -0.35%
Hard Red Wheat Dec 2016Â Â 518.5Â Â -1.75Â Â -0.34%