Canola futures ended mixed on Tuesday with old crop down slightly and new crop up.
Canola opened down but then climbed into positive territory later in the morning before edging back on profit taking.
Canola remains supported by strong demand from exporters and domestic crushers.
May canola closed at $620.50 per tonne, down 30 cents
November closed at $580.90, up $2.90.
Nearby corn prices are supported by worries about tight old crop stocks.
Downward pressure came from a weekly USDA report showing corn seeding in the U.S. had progressed to three percent, tied for the fasted start to seeding since the department started tracking the number. Spring wheat seeding has also begun in the U.S. and the hard red winter wheat crop is in much better condition than it was at this point last year.
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Seeding in Canada is also expected to get underway earlier than normal.
• Informa Economics today raised its forecast for corn seeding to 96.4 million tonnes. It now puts soybean acreage at 74.2 million.
USDA last week projected corn at 95.9 million acres and soybeans at 73.9 million.
Current prices favour soybean production in the U.S. but the warm weather and early seeding favours corn.
• Oilseed analysts Oil World said it would likely have to reduce its estimate of South American soybean production by two-three million tonnes as harvest results proved worse than expected.
• Brazilian crop analysts Agroconsult today estimated the soybean crop at 65.2 million tonnes, down from 67.1 million tonnes forecast in March and down from the record harvest of 75.3 million tonnes last year.
Winnipeg (per tonne)
Canola May 12 $620.50, down 0.30 -0.05%
Canola Jul 12 $617.50, down 0.60 -0.10%
Canola Nov 12 $580.90, up 2.90 +0.50%
Canola Jan 13 $584.40, up 2.70 +0.46%
The best basis the previous day in the par region was 27 cents under the May contract, said ICE Futures Canada.
The 14-day RSI was 74.
Western Barley May 12 $230.00, unchanged
Western Barley Jul 12 $233.00, unchanged
Milling Wheat Oct 12 $270.00, unchanged
Milling Wheat Dec 12 $275.00, unchanged
Milling Wheat Mar 13 $280.00, unchanged
Durum Wheat Oct 12 $275.00, unchanged
Durum Wheat Dec 12 $279.50, unchanged
Durum Wheat Mar 13 $286.10, unchanged
Barley Oct 12 $186.50, unchanged
Barley Dec 12 $190.00, unchanged
Barley Mar 13 $191.50, unchanged
Chicago (per bushel)
Soybeans May 12 $14.1675, down 4.25 cents -0.30%
Soybeans Jul 12 $14.2125, down 6.0 -0.42%
Soybeans Nov 12 $13.7875, down 6.5 -0.47%
Corn May 12 $6.5825, up 3.25 +0.50%
Corn Jul 12 $6.53, up 2.0 +0.31%
Corn Dec 12 $5.455, up 0.5 +0.09%
Oats May 12 $3.3675 up 2.0 +0.60%
Oats Jul 12 $3.3575, down 0.25 -0.07%
Oats Dec 12 $3.41 up 2.5 +0.74%
Minneapolis (per bushel)
Spring Wheat May 12 $8.5025, up 1.0 cent +0.12%
Spring Wheat Jul 12 $8.455, up 2.25 +0.27%
Spring Wheat Sep 12 $8.3325, up 0.25 +0.03%
Spring Wheat Dec 12 $8.28, down 1.25 -0.15%
The nearby New York light sweet crude contract fell $1.22 to $104.01.
The Canadian dollar at noon was $1.0091 US, up from $1.0084 the previous trading day. The U.S. dollar at noon was 0.9910 Cdn.
The TSX saw its largest one-day drop in four weeks and U.S. markets also fell on news from the U.S. Federal Reserve that it is looking less favourably on stimulous measures. Also weighing on the TSX were tumbling commodities and a steep drop in shares of Royal Bank of Canada a day after a U.S. regulator accused it of engaging in illegal stock futures trading.
In unofficial tallies:
The Toronto Stock Exchange’s S&P/TSX composite index fell 183.45 points, or 1.47 percent, at 12,323.61.
The Dow Jones industrial average declined 64.94 points, or 0.49 percent, to 13,199.55 at the close.
The Standard & Poor’s 500 Index slipped 5.73 points, or 0.40 percent, to 1,413.31.
The Nasdaq Composite Index dropped 6.13 points, or 0.20 percent, to 3,113.57.
