Canola futures in Winnipeg Wednesday followed soybeans in Chicago as they shot higher with worries about U.S. soybean acreage and yield.
But the echo was not in high fidelity, with canola lagging and at the end of the day falling while soybeans rose.
November canola futures at the ICE Canada Futures exchange closed up $3.60 at $557.60, with March up $4.20 to $573.80.
Canola’s relative weakness to soybeans seemed justified by the generally good production and harvesting conditions being seen across Western Canada, with prospects for the crop much better than they were a few weeks ago. Instead of downgrades, as with U.S. soybeans, canola in Canada is getting production upgrades.
But farmers have slowed deliveries as they get busy with pre-harvest and harvest activities, so crushers and exporters have had to keep attractive basis levels to ease the old crop out of farmers’ hands.
Canola’s ability to play tag-along with soybeans gave it an escape from a generally dreary day for corn-related crops like oats.
While soybean futures were up more than 17 cents per bushel, corn fell a couple of cents and oats were flat.
Hard Red Spring Wheat futures in Minneapolis had another good day, rising nine cents for most new crop months and more than 20 cents for old crop. This continued a pattern of hard red spring wheat outpacing Chicago winter wheat, which on Wednesday rose only six cents, or 50 percent less.
In world equity markets, an early rally based on optimism that another dose of quantitative easing would take place evaporated when second thoughts crept in about both the likelihood of Q3 happening and whether another act of monetary desperation was a bullish thing.
Oil rose as the U.S. dollar fell.
Winnipeg (per tonne)
Canola Nov 11 $557.60, up $3.60
Canola Jan 12 $566.00, up $3.60
Canola Mar 12 $573.80, up $4.20
Canola May 12 $580.00, up $4.60
Western Barley Oct 11 $199.00, unchanged
Chicago (per bushel)
Soybeans Sep 11 $13.5675, up 16.75 cents
Soybeans Nov 11 $13.6675, up 17.25
Soybeans Jan 12 $13.7775, up 17.50
Corn Sep 11 $7.1150, down 2.50
Corn Dec 11 $7.2550, down 2.00
Oats Sep 11 $3.4800, unchanged
Oats Dec 11 $3.5900, down 0.50
Minneapolis (per bushel)
Spring Wheat Sep 11 $9.1675, up 20.50 cents
Spring Wheat Dec 11 $9.0475, up 11.25
Spring Wheat Mar 12 $9.0600, up 9.50
