Soybeans and wheat led the grain market up on Tuesday on concerns about too much rain in Brazil and too little in the U.S. southern plains.
Canola rode soybean’s coat tails higher. Canola continues to be supported by the worry about spring flooding and continued cool weather.
The markets generally are still tightly focused on what will be in the U.S. Department of Agriculture’s planting intentions report to be released Thursday.
The report is expected to show that American farmers, encouraged by high crop prices, intend to increase the area of crops sown. However, much of the new seeded land will be of marginal quality and yields could be lower than that seen on prime land.
There will also be a USDA report on grain stocks
On Monday the USDA reported that the hard red winter wheat crop in Kansas improved a little from the previous week, but the crop in Oklahoma and Texas deteriorated due to lack of rain and strong winds.
There were conflicting views of the Brazilian soybean crop issued Tuesday. Oil World stuck with its forecast of 70.5 million tonnes, up from 68.6 million last year, but said if rain continues as forecasted for the next two weeks, it would likely force a reduction of 500,000 to one million tonnes.
Meanwhile, Brazilian analyst Agroconsult pegged the crop at around 72.7 million tonnes, up from its February estimate of 72 million tonnes.
New record high prices for a lead month fed cattle futures were set in afternoon electronic trading after it was reported that cash cattle were trading at $196 US per hundredweight in Nebraska, up $6 from the previous week.
The April contract hit 120 cents per pound.
Winnipeg (per tonne)
Canola May 11 $583.10, up $2.90
Canola Jul 11 $591.50, up $3.00
Canola Nov 11 $570.00, up $4.10
Canola Jan 12 $575.20, up $4.30
The previous day’s best basis was steady at $15.50 under the May contract according to ICE Futures Canada in Winnipeg.
The May contract’s Relative Strength Index was 52. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley May 11 $200 unchanged
Chicago (per bushel)
Soybeans May 11 $13.615, up 13.0 cents
Soybeans Jul 11 $13.7225, up 13.0 cents
Soybeans Nov 11 $13.5425, up 12.25 cents
Corn May 11 $6.7175, up 0.6 cents
Corn Dec 11 $6.0025, up 3.25 cents
Oats May 11 $3.51, up 2.0 cents
Oats Jul 11 $3.595, up 2.0 cents
Minneapolis (per bushel)
Spring Wheat May 11 $8.8825, up 13.25 cents
Spring Wheat Jul 11 $8.985, up 15.0 cents
Spring Wheat Dec 11 $9.145, up 13.75 cents
Light crude oil nearby futures in New York rose 81 cents to $104.79 US per barrel.
The Canadian dollar at noon was $1.0245 US, almost steady with $1.0248 the previous trading day. The U.S. dollar at noon was 97.61 cents Cdn.
The Toronto Stock Exchange composite index rose 41.67 points, or 0.3 percent, to 13,934.40.
The Standard & Poor’s 500 index rose 9.25 points, or 0.71 percent, to 1,319.44.
