Greek austerity move lifts most markets, including canola

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Published: February 13, 2012

Canola and other crop futures rose on Monday supported by renewed optimism that Greece will meet its debt obligations.

Greek legislators passed a new austerity program weekend needed to get bailout package from the European Union and International Monetary Fund, but there were protests and riots on the streets against the sharp cuts.

March canola rose to $538.80 per tonne, up $3.50.

The Greek vote broke the tension in world markets, giving investors more confidence to shift money out of safe haven U.S. Treasuries and into commodities.

• The lack of moisture on the Canadian prairies is still on the minds of traders.

• Rain and snow is expected in the U.S. Plains this week, boosting soil moisture conditions in wheat-growing areas. The accompanying cold is not expected to be enough to damage winter wheat.

• Parts of North Africa last week got moisture, helped to reduce worries following weeks of dry weather. The region is a major durum producer and importer.

• U.S. president Barack Obama released a proposed budget today. For the third year running he proposed deep cuts to agricultural spending, including the elimination of the $5 billion a year in direct payments to farmers.

But Congress, which has the ultimate say on spending, has yet to agree on how to reform the farm bill.

• Hedge funds and other big investors have been increasing their bets on commodities, including crops, in recent weeks, buoyed by gradually improving news on the U.S. economy.

 

Winnipeg (per tonne)

Canola Mar 12  $538.80, up $3.50       (+0.65%)

Canola May 12  $542.50, up $4.60       (+0.86%)

Canola Jul 12  $545.30, up $5.00       (+0.93%)

Canola Nov 12  $521.20, up $4.40       (+0.85%)

The previous trading day’s best basis was $5.27 per tonne off the March contract, said the ICE Futures Canada exchange in Winnipeg.

The 14-day relative strength index was 66.

Western Barley Mar 12  $212.00, unchanged

Western Barley May 12  $217.00, unchanged

Milling Wht Oct 12  $259.80, unchanged

Milling Wht Dec 12  $264.50, unchanged

Milling Wht Mar 13  $269.50, unchanged

Durum Wht Oct 12  $265.00, down $4.00       (-1.49%)

Durum Wht Dec 12  $269.70, down $3.80       (-1.39%)

Durum Wht Mar 13  $274.70, down $3.80       (-1.36%)

Barley Oct 12  $180.00, unchanged

Barley Dec 12  $184.00, unchanged

Barley Mar 13  $185.50, unchanged

 

Chicago (per bushel)

Soybeans Mar 12  $12.52, up 23.0 cents       (+1.87%)

Soybeans May 12  $12.60, up 22.5       (+1.82%)

Soybeans Nov 12  $12.59, up 19.5       (+1.57%)

Corn Mar 12  $6.395, up 7.75              (+1.23%)

Corn May 12  $6.43, up 7.5              (+1.18%)

Corn Dec 12  $5.67, up 7.25              (+1.30%)

Oats Mar 12  $3.25, up 7.0              (+2.20%)

Oats May 12  $3.14, up 4.5              (+1.45%)

Oats Dec 12  $3.155, up 0.5              (+0.16%)

 

Minneapolis (per bushel)

Spring Wht Mar 12  $8.155, up 1.25 cents (+0.15%)

Spring Wht May 12  $8.0675, up 3.75 (+0.47%)

Spring Wht Dec 12  $7.745, up 7.75  (+1.01%)

Nearby light crude oil in New York settled at $100.91 a barrel, up $2.24.

The Canadian dollar at noon rose back above par at $1.0004 US, up from 99.84 cents the previous trading day. The U.S. dollar at noon was 99.96 cents Cdn.

The Toronto Stock Exchange composite unofficially closed up 9.27 points, or 0.07 percent, at 12,398.69.

In an early tally, the Dow Jones industrial average was up 71.52 points, or 0.56 percent, at 12,872.75. The Standard & Poor’s 500 Index was up 9.03 points, or 0.67 percent, at 1,351.67. The Nasdaq Composite Index was up 27.15 points, or 0.93 percent, at 2,931.03.

About the author

D'Arce McMillan

Markets editor, Saskatoon newsroom

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