Canola stumbles as soy, corn rises

Canola futures didn’t share the general crop market rally Wednesday, on a day when soybeans and corn began ascending the heights again.

However, soyoil in Chicago fell slightly as well, underlining a temporarily sated feeling in the vegetable oil markets.

Canola fell 80 cents per tonne on the November futures contract to $652.50 per tonne, or $14.35 per bushel, with January falling 40 cents to $635.60.

Palm oil and European rapeseed had also fallen in the lead-up to Wednesday’s session, so weakness underlay the vegoil complex.

The situation wasn’t helped by a rising Canadian dollar and the continuation of generally excellent prairie canola growing conditions.

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However, canola’s close was at the high end of the daily range and much better than early in the session, when canola had fallen to $324.50 per tonne. Most crop futures rallied mid-Wednesday and that helped canola avoid a worrying loss for the day.

Generally, world markets were in a mood to ignore the festering problems in Europe, China and the United States and focus instead on signs of slight recovery in the U.S. housing sector and good corporate earnings reports that suggest U.S. companies are doing well.

The gains leading into the afternoon close in Chicago were impressive for wheat, corn and soybeans, with wheat contracts rising 13 to 18 cents per bu., corn rising 11 to 15 cents per bu. and soybeans rising 29 to 44 cents per bu.

Early in the day, prices hovered with little conviction and then some losses occurred. However, recovered and soared as the day wound down.

Winnipeg (per tonne)

Canola Nov 12 $632.50, down $0.80 -0.13%

Canola Jan 13 $635.60, down $0.40 -0.06%

Canola Mar 13 $635.00, down $1.00 -0.16%

Canola May 13 $632.10, down $1.00 -0.16%

Western Barley Oct 12 $255.00, up $4.00 +1.59%

Western Barley Dec 12 $260.00, up $5.00 +1.96%

Milling Wheat Oct 12 $317.50, up $5.00 +1.60%

Milling Wheat Dec 12 $325.00, up $5.00 +1.56%

Milling Wheat Mar 13 $335.00, up $5.00 +1.52%

Durum Wheat Oct 12 $330.50, up $5.00 +1.54%