Canola edged lower Thursday even though outside markets bounced back from Wednesday’s losses after Spain’s government today released an austerity budget.
November canola closed at $591.90, down $3.20.
Soybeans were virtually unchanged and soy oil up slightly.
Corn hit an 11 week low on poor weekly U.S. corn export sales — net sales were only about 400 tonnes.
Wheat also fell, mostly following corn but also on Russian officials reaffirming there would be no government-imposed limits on wheat exports. However, rising domestic prices are doing the trick of keeping Russian grain out of the export market.
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U.S. grains: Corn slips from six-week high, soybeans down on China demand worries
U.S. corn futures fell from a six-week peak on Wednesday on profit-taking and technical selling after three sessions of gains as an expected record-large U.S. harvest weighed on the market.
Recent declines have turned canola’s technical signals bearish.
The disappointing yields in canola have been priced into the market.
• Oilseeds face pressure from expectations of a large South American soybean crop and rising stocks of palm oil as production in Malaysia and Indonesia outpaces demand.
Thomas Mielke, executive director of Oil World recently told a conference that soybean might yet make a run to $20 a bushel because of exceptionally tight soybean stocks this fall and early winter.
But if Brazil and Argentina look like they will harvest good crops, the price will start to weaken in early 2013.
• Rain today in Oklahoma and Texas is improving the seeding outlook for U.S. winter wheat. However, U.S. Drought Monitor says that 88 percent of Kansas in extreme drought and 51.04 percent in exceptional drought as farmers plant the winter wheat crop there.
• Friday morning the USDA will release its quarterly stocks report.
Analysts, as polled by Reuters, on average expect soybean stocks at of Sept. 1 to be 131 million bushels, corn 1.113 billion bu. and wheat 2.278 billion.
• Temperatures topping 30 C in Victoria and South Australia are stressing crops. Most private analysts put the Australian wheat crop at about 20-22 million tonnes, but a few are starting to consider the possibility of it falling below 20 million.
Winnipeg (per tonne)
Canola Nov 12 $591.90, down $3.20 -0.54%
Canola Jan 13 $595.60, down $2.90 -0.48%
Canola Mar 13 $595.60, down $1.90 -0.32%
Canola May 13 $587.30, down $1.70 -0.29%
Milling Wheat Oct 12 $290.70, down $4.80 -1.62%
Milling Wheat Dec 12 $295.90, down $4.80 -1.60%
Milling Wheat Mar 13 $305.40, down $4.80 -1.55%
Durum Wheat Oct 12 $311.90, unchanged
Durum Wheat Dec 12 $316.40, unchanged
Durum Wheat Mar 13 $323.00, unchanged
Barley Oct 12 $250.30, unchanged
Barley Dec 12 $255.30, unchanged
Barley Mar 13 $258.30, unchanged
Chicago (per bushel)
Soybeans (P) Nov 12 $15.7075, down 2.25 cents -0.14%
Soybeans (P) Jan 13 $15.7125, down 3.0 -0.19%
Soybeans (P) Mar 13 $15.24, down 7.75 -0.51%
Soybeans (P) May 13 $14.79, down 9.25 -0.62%
Corn (P) Dec 12 $7.1625, down 8.5 -1.17%
Corn (P) Mar 13 $7.195, down 9.0 -1.24%
Corn (P) May 13 $7.17, down 9.75 -1.34%
Oats (P) Dec 12 $3.6825, down 6.75 -1.80%
Oats (P) Mar 13 $3.7375, down 6.75 -1.77%
Oats (P) May 13 $3.755, down 6.75 -1.77%
Minneapolis (per bushel)
Spring Wheat Dec 12 $9.1425, down 15.25 cents -1.64%
Spring Wheat Mar 13 $9.22, down 15.75 -1.68%
Spring Wheat May 13 $9.28, down 15.75 -1.67%
Spring Wheat Jul 13 $9.2675, down 14.5 -1.54%
The Bank of Canada noon rate for the loonie was $1.019 US, up a little from $1.0161 the day before.
The U.S. buck was 98.14 cents Cdn.
Nearby crude oil in New York rose $1.87 to $91.85 on tensions with Iran and talk that China was preparing stimulus actions to spark the cooling economy.
In early tallies:
The Toronto Stock Exchange’s S&P/TSX composite index rose 105.99 points, or 0.87 percent, at 12,338.85.
The Dow Jones industrial average rose 72.46 points, or 0.54 percent, to close at 13,485.97.
The S&P 500 climbed 13.84 points, or 0.97 percent, to finish at 1,447.16.
The Nasdaq Composite added 42.90 points, or 1.39 percent, to close at 3,136.60.
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