Canola futures closed mixed Thursday after riding higher in the morning.
The weaker loonie was the main reason for the early strength because soybeans spent the day lower.
July canola closed at $642.60, up 30 cents.
November closed at $588, down $1.00.
The loonie was down as the market awaits results from the two-day summit meeting of European leaders called to find ways to boost their lagging economies and to lower borrowing rates for Spain and Italy. The interest rate that Spain must supply to get any interest in its debt issues is unsupportable and Italy’s situation is almost as bad.
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U.S. grains: Wheat futures dip; corn falls for third straight session
Chicago Board of Trade wheat futures fell on Wednesday amid signs of profit-taking and reports of ample global supplies, which are outweighing concerns over smaller Russian crop estimates, market analysts said.
• Soybeans fell because traders think Friday’s USDA seeded area report will increase soybean acreage. New crop corn settled lower after being higher through the morning. Traders took profits ahead of Friday’s USDA grain stocks and acreage reports.
•. Wheat and durum values are up by $3 to $5 per tonne in he June Pool Return Outlook, depending on class, grade and protein. Malting barley values are up by $1 per tonne.
• Reuters has polled analysts again for their forecast of U.S. corn yields. The average estimate is 157 bushels per acre, down from 161.5 in a poll taken June 13 and nine bu. less than USDA’s forecast for a record-high 166 bu.
Because of the huge acreage, analysts still expect a record-large U.S. corn harvest with analysts’ forecasts averaging 13.7 billion bu., topping the previous record set in 2009 of 13.09 billion bu.
• ICE barley futures rose $5 per tonne.
• Reuters also polled analysts for their take on wheat production in the former Soviet Union. The average view was that production would be 78.9 million tonnes this year, down 22 percent from 2011.
• India’s monsoon rains are off to a slow start but are expected to pick up in the next 10 to 15 days,
Rains from June 1 until now are 23 percent below average, compared with a 10.7 percent surplus in June 1-29 last year.
The dry weather is slowing seeding of the summer crop and if the rain held off for another two weeks there would be concern because late seeding hurts yields. But the forecast is for more rain over a larger area next week.
• The Saskatchewan crop report said the majority of crops are in fair to good condition.
Some of the crop is behind its normal development. Forty-one percent of spring cereals are behind, 47 percent of oilseeds are behind, and 30 percent of pulses. Seven percent of fall cereals are behind.
Excess rain and flooding, hail and pests caused crop damage in the last week.
Winnipeg (per tonne)
Canola Jul 12 $642.60, up $0.30 +0.05%
Canola Nov 12 $588.00, down $1.00 -0.17%
Canola Jan 13 $592.00, down $0.10 -0.02%
Canola Mar 13 $591.70, up $0.30 +0.05%
The best basis in the par region the previous day was still $14 above the July contract, said ICE Futures Canada.
The 14-day relative strength index was 68.
Western Barley Jul 12 $237.00, unchanged
Western Barley Oct 12 $217.00, unchanged
Milling Wheat Oct 12 $274.30, up 5.00 +1.86%
Milling Wheat Dec 12 $281.60, up 5.00 +1.81%
Milling Wheat Mar 13 $290.60, up 5.00 +1.75%
Durum Wheat Oct 12 $275.50, unchanged
Durum Wheat Dec 12 $280.00, unchanged
Durum Wheat Mar 13 $286.60, unchanged
Barley Oct 12 $194.00, up 5.00 +2.65%
Barley Dec 12 $196.70, up 5.00 +2.61%
Barley Mar 13 $199.70, up 5.00 +2.57%
Chicago (per bushel)
Soybeans (P) Jul 12 $14.68 -3.0 -0.20%
Soybeans (P) Sep 12 $14.175, down 8.5 -0.60%
Soybeans (P) Nov 12 $14.06 -6.0 -0.42%
Corn (P) Jul 12 $6.52 +2.5 +0.38%
Corn (P) Sep 12 $6.2625, down 1.25 -0.20%
Corn (P) Dec 12 $6.3225, down 0.75 -0.12%
Oats (P) Jul 12 $3.34, down 13.75 -3.95%
Oats (P) Sep 12 $3.36, down 1.5 -0.44%
Oats (P) Dec 12 $3.4375, down 1.5 -0.43%
Minneapolis (per bushel)
Spring Wheat Jul 12 $8.6775, up 23.5 +2.78%
Spring Wheat Sep 12 $8.3475, down 0.5 -0.06%
Spring Wheat Dec 12 $8.40, down 0.5 -0.06%
Spring Wheat Mar 13 $8.46, down 1.0 -0.12%
Nearby crude oil in New York closed at $77.69, down $2.52 as traders worried about the eurozone debt crisis exited riskier investments.
The Bank of Canada noon rate for the loonie was 96.78 cents US, down from 97.49 the day before.
The American dollar was $1.0333 Cdn.
In early tallies:
The Toronto Stock Exchange’s S&P/TSX composite index rose 13.76 points, or 0.12 percent, at 11,424.70.
The Dow Jones industrial average was down 24.90 points, or 0.20 percent, at 12,602.11.
The Standard & Poor’s 500 Index was down 2.84 points, or 0.21 percent, at 1,329.01.
The Nasdaq Composite Index was down 25.83 points, or 0.90 percent, at 2,849.49.
