Canola benefited from the cheery mood in crop futures markets Thursday but was dull compared to the market leaders.
In fact, most of canola’s strength was borrowed, traders said.
“Canola is able to follow, but it lagged quite a bit,” said broker Ken Ball of Union Securities.
“It was kind of quiet (in the canola market). It lagged the U.S. markets today noticeably.”
November canola futures rose $3.20 to $561.40 per tonne, or $12.73 per bushel.
While most of the positive tone came from U.S. related markets, canola also firmed on forecasts that high heat is heading for much of the Canadian Prairies at a time when much canola is still flowering. Heat can prematurely end flowering, reducing seed potential.
Rumours of more exports were also common in the canola arena.
Chicago soyoil was strong on Wednesday, based on piggybacking on the rally in diesel and heating oil prices, and soybeans went along for the ride, rising about 20 cents per bu. in most contract months to $13.16-$13.21 per bu. for the fall and early winter.
Canola, a sister to soyoil and soybeans, tagged along behind.
Corn rose only seven cents per bu. to $6.16 but was the source of bullish news for the market. The U.S. Department of Agriculture confirmed that China recently bought 540,000 tonnes of corn, and that 300,000 tonnes had been sold to an unknown Asian destination. Last week it reported that 1.1 million tonnes of corn had been sold to an unknown destination.
Traders presume both shipments went to China, which had previously been expected to import only two million tonnes of U.S. corn this year. As a result, the news that two million tonnes has already been sold is making many speculate that more sales are soon coming.
Spring wheat and hard red winter wheat were the market weaklings, losing money on a day virtually every other North American crop was in the green.
Minneapolis new crop futures fell two to three cents per bu.
Oats shook off the wheat effect and joined the rest of the market in a minor gain, rising more than two cents to $3.45 per bu. for the September futures contract.
Winnipeg (per tonne)
Canola Jul 11 $571.40, down $1.80
Canola Nov 11 $561.40, up $3.20
Canola Jan 12 $570.00, up $4.10
Canola Mar 12 $576.40, up $3.40
Western Barley Jul 11 $207.00, unchanged
Chicago (per bushel)
Soybeans Jul 11 $13.4550, up 14.50 cents
Soybeans Aug 11 $13.4075, up 18.50
Soybeans Nov 11 $13.3775, up 19.25
Corn Jul 11 $6.5000, up 1.25
Corn Dec 11 $6.1550, up 7.00
Oats Jul 11 $3.4100, up 6.00
Oats Dec 11 $3.5225, up 3.25
Minneapolis (per bushel)
Spring Wheat Jul 11 $8.5325, down 10.50 cents
Spring Wheat Sep 11 $8.2475, down 2.75
Spring Wheat Dec 11 $8.1975, down 2.75
