Canola futures rose on Tuesday with support from soybeans, which were lifted by forecasts for a dry finish to the southern Brazil soybean growing season.
May canola finished at $586.80 per tonne up $2.70.
In a rare situation, new crop futures rose more than old crop. November closed at $548.70 up $4.90.
There were reports of new canola export business to China.
Canola retains strong fundamental support from good export and domestic demand.
• Unusually warm temperatures in U.S. winter wheat areas are spurring crop growth. With the next two weeks expected to enjoy warmer than normal temperatures, there is also the possibility of early spring wheat seeding. Early seeding is also possible in the Midwest corn and soybean areas.
• Concern is growing in Western Europe and parts of North Africa about dry weather.
Britain is suffering from drought, Spain had the driest winter on record and Morocco is suffering significant crop loss. The Spanish and Moroccan situations have potential to improve demand for Canadian durum.
• Last week’s rumours of a large U.S. corn sale were confirmed today. USDA confirmed sales of 240,000 tonnes of old crop corn to unnamed destinations. Many in the market believe the business is with China.
• Ukraine’s government now pegs its wheat crop at 14 million tonnes, down two million from its last forecast and down 37 percent from last year. The country uses 12 million tonnes domestically but because of large carry in stocks it still expected to export about seven million tonnes of wheat in the new crop year.
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Areas damaged by drought and frost will likely be reseeded with spring barley and corn.
Winnipeg (per tonne)
Canola Mar 12 $597.80, up $0.70, +0.12%
Canola May 12 $586.80, up $2.70, +0.46%
Canola Jul 12 $587.60, up $2.60, +0.44%
Canola Nov 12 $548.70, up $4.90, +0.90%
The previous day’s best canola basis was $2.80 over the May contract, according to ICE Futures Canada in Winnipeg.
The 14-day relative strength index was 82.
Western Barley Mar 12 $218.00, unchanged
Western Barley May 12 $224.00, unchanged
Milling Wht Oct 12 $260.50, unchanged
Milling Wht Dec 12 $265.50, unchanged
Milling Wht Mar 13 $270.50, unchanged
Durum Wht Oct 12 $265.50, unchanged
Durum Wht Dec 12 $270.00, unchanged
Durum Wht Mar 13 $276.60, unchanged
Barley Oct 12 $185.00, unchanged
Barley Dec 12 $188.50, unchanged
Barley Mar 13 $190.00, unchanged
Chicago (per bushel)
Soybeans Mar 12 $13.4875, up 18.25 cents +1.37%
Soybeans May 12 $13.4875, up 14.25, +1.07%
Soybeans Nov 12 $13.115, up 12.0, +0.92%
Corn Mar 12 $6.74, up 2.5, +0.37%
Corn May 12 $6.62, up 2.5, +0.38%
Corn Dec 12 $5.675, down 1.0, -0.18%
Oats Mar 12 $3.315, up 3.25, +0.99%
Oats May 12 $3.075, up 4.5, +1.49%
Oats Dec 12 $3.0525, down 0.75, -0.25%
Minneapolis (per bushel)
Spring Wht Mar 12 $8.1075, unchanged
Spring Wht May 12 $8.11, down 8.5 cents -1.04%
Spring Wht Dec 12 $7.9625, down 8.0 -0.99%
The nearby New York light sweet crude contract rose 37 cents to $106.71.
The Canadian dollar at noon was $1.0096 US, up from $1.0065 the previous trading day. The U.S. dollar at noon was 99.05 Cdn.
U.S. stock markets posted the strongest gains this year. Momentum came from stronger-than-expected U.S. retail sales in February and benign comments from the U.S. Federal Reserve, which said recent strains on financial markets were easing.
In an early tally, the Toronto Stock Exchange’s S&P/TSX composite index closed up 109.68 points, or 0.88 percent, at 12,537.69.
The Dow Jones industrial average jumped 217.97 points, or 1.68 percent, to 13,177.68 and the Standard & Poor’s 500 Index climbed 24.87 points, or 1.81 percent, to 1,395.96. The Nasdaq Composite Index climbed 56.22 points, or 1.88 percent, to 3,039.88.
