Canola ends higher on Thursday

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A U.S. Department of Agriculture acreage outlook had little impact on canola today, as futures prices rose slightly in Winnipeg.

The May canola contract closed the day at $561.80 per tonne, up $1.80 from yesterday. The new crop November contract was up 60 cents, ending at $532.40.

At its outlook forum in Arlington, Virginia, the USDA released its acreage estimates for 2012. It pegged U.S. corn acres at 94 million, which represents the largest acreage since 1944 and an increase of 3.1 million from last year. New crop corn futures dropped more than five cents on the news, ending the day at $5.5875 per bu.

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Soybeans were projected at 75 million acres, the same as 2011. The news gave soybeans a bump, as May futures ended at $12.835, up 4.75 cents from yesterday.

The USDA report pressured wheat futures because it predicted all wheat acreage at 58 million, up from 54.4 million in 2011. September wheat futures in Minneapolis dropped 8.75 cents per bu. on the news, closing at $7.835 per bu.

Worries over a North American drought and concerns about the size of the South American soybean crop also supported canola prices on the day, traders said.

Winnipeg (per tonne)

Canola Mar 12 $562.30, up $3.90 +0.70%

Canola May 12 $561.80, up $1.80 +0.32%

Canola Jul 12 $563.90, up $0.90 +0.16%

Canola Nov 12 $532.40, up $0.60 +0.11%

Western Barley Mar 12 $214.00, unchanged

Western Barley May 12 $217.00, unchanged

Milling Wheat Oct 12 $264.00, unchanged

Milling Wheat Dec 12 $268.50, unchanged

Milling Wheat Mar 13 $273.50, unchanged

Durum Wheat Oct 12 $265.90, unchanged

Durum Wheat Dec 12 $270.40, unchanged

Durum Wheat Mar 13 $276.60, unchanged

Barley Oct 12 $182.40, unchanged

Barley Dec 12 $185.90, unchanged

Barley Mar 13 $187.40, unchanged

Chicago (per bushel)

Soybeans Mar 12 $12.7675, up 4.50 cents +0.35%

Soybeans May 12 $12.8350, up 4.75 +0.37%

Soybeans Nov 12 $12.6775, up 3.75 +0.30%

Corn Mar 12 $6.3950, up 1.25 +0.20%

Corn May 12 $6.4250, up 1.25 +0.19%

Corn Dec 12 $5.5875, down 5.75 -1.02%

Oats Mar 12 $3.2050, up 1.25 +0.39%

Oats May 12 $3.1350, up 1.25 +0.40%

Oats Dec 12 $3.2100, up 2.00 +0.63%

Minneapolis (per bushel)

Spring Wheat Mar 12 $8.0100, down 17.25 cents -2.11%

Spring Wheat May 12 $8.0325, down 16.25 -1.98%

Spring Wheat Dec 12 $7.8600, down 9.50 -1.19%

The previous day’s best canola basis was 80 cents under the March contract, according to ICE Futures Canada in Winnipeg.

Light crude oil nearby futures in New York rose $1.55 at $107.83 US per barrel.

The Canadian dollar at noon was $1.0015 US, up from $1.0000 the previous trading day. The U.S. dollar at noon was 99.85 cents Cdn.

About the author

Robert Arnason is a reporter with The Western Producer and Glacier Farm Media. Since 2008, he has authored nearly 5,000 articles on anything and everything related to Canadian agriculture. He didn’t grow up on a farm, but Robert spent hundreds of days on his uncle’s cattle and grain farm in Manitoba. Robert started his journalism career in Winnipeg as a freelancer, then worked as a reporter and editor at newspapers in Nipawin, Saskatchewan and Fernie, BC. Robert has a degree in civil engineering from the University of Manitoba and a diploma in LSJF – Long Suffering Jets’ Fan.