Oilseeds soared on Tuesday as the market had its first chance to react to inadequate weekend rain in Argentina.
New sales of U.S. soybeans to China also supported oilseeds.
The Lunar New Year holiday is over and China was back in the market.
The pace of U.S. soybean exports is above the amount needed to reach USDA’s whole year forecast, so the ending stocks forecast might have to be trimmed.
March closed at $642, up $11.80. November closed at $569.70, up $13.90.
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A weaker loonie also supported canola. The loonie was under pressure as traders worries about the effects of looming automatic U.S. spending cuts if Congress can’t agree on plan to address the budget deficit. The cuts would likely further slow the sputtering U.S. economy.
Corn and wheat were under pressure from the weather forecast for snow and rain across the Plains and into the Midwest Thursday-Friday.
• Also, slow U.S. wheat and corn exports are weighing on grains.
A trend of slow weekly wheat sales was broken last week but it is not certain that one week will lead to the pickup that several analysts have expected in the second half of the crop year.
One reason is India.
• India expects another bumper wheat crop. Its exports are picking up, filling in for the lack of wheat exports from the Black Sea region. It has huge government-owned wheat stocks after a couple of good harvests and private traders are lobbying to get access to them for the export market.
• Brazil’s plan to modernize its ports and attract 27 billion in private investment in port infrastructure is encountering labour pushback.
Until now public and private terminals have been required to source labour through a centralized agency that doles out available shifts to union members. Proposed reforms would allow private terminals to bypass the hiring agency and hire non-union labour.
Union workers this weekend stopped a Chinese ship from using non union labour to load equipment. The unions say the protest could expand into commodities such as soybeans in coming weeks if the government does not modify its plans.
Winnipeg ICE Futures (per tonne)
Canola Mar 13 $642.00, up $11.80 +1.87%
Canola May 13 $630.90, up $15.10 +2.45%
Canola Jul 13 $617.40, up $15.20 +2.52%
Canola Nov 13 $569.70, up $13.90 +2.50%
Milling Wheat Mar 13 $291.00, unchanged
Milling Wheat May 13 $294.00, unchanged
Milling Wheat Jul 13 $296.00, unchanged
Milling Wheat Oct 13 $296.00, unchanged
Durum Wheat Mar 13 $304.20, unchanged
Durum Wheat May 13 $308.20, unchanged
Durum Wheat Jul 13 $311.20, unchanged
Durum Wheat Oct 13 $296.50, unchanged
Barley Mar 13 $241.50, unchanged
Barley May 13 $242.50, unchanged
Barley Jul 13 $243.00, unchanged
Barley Oct 13 $243.00, unchanged
Chicago (per bushel)
Soybeans (P) Mar 13 $14.7025, up 45.75 cents +3.21%
Soybeans (P) May 13 $14.5725, up 42.5 +3.00%
Soybeans (P) Jul 13 $14.455, up 40.75 +2.90%
Soybeans (P) Aug 13 $14.0375, up 34.75 +2.54%
Soybeans (P) Sep 13 $13.30, up 25.0 +1.92%
Soybeans (P) Nov 13 $12.735, up 11.75 +0.93%
Corn (P) Mar 13 $6.9525 down 3.5 -0.50%
Corn (P) May 13 $6.92, down 5.0 -0.72%
Corn (P) Jul 13 $6.8025, down 5.0 -0.73%
Corn (P) Sep 13 $5.7775, down 4.5 -0.77%
Corn (P) Dec 13 $5.5775, down 5.25 +0.93%
Oats (P) Mar 13 $3.7775, down 1.25 +0.33%
Oats (P) May 13 $3.8325, up 3.75 +0.99%
Oats (P) Jul 13 $3.82, up 3.75 +0.99%
Oats (P) Sep 13 $3.7775, up 4.75 +1.27%
Oats (P) Dec 13 $3.71, up 2.75 +0.75%
Minneapolis (per bushel)
Spring Wheat Mar 13 $8.1575, down 7.75 -0.94%
Spring Wheat May 13 $8.3075, down 9.0 -1.07%
Spring Wheat Jul 13 $8.4025, down 9.5 -1.12%
Spring Wheat Sep 13 $8.44, down 8.5 -1.00%
Spring Wheat Dec 13 $8.51, down 9.0 -1.05%
The Bank of Canada noon rate for the loonie was 98.83 cents US, down about a half cent from 99.30 cents on Friday.
The U.S. buck was $1.0118 Cdn.
Nearby crude oil futures in New York rose 80 cents to close at $96.66 per tonne.
In early tallies:
Toronto Stock Exchange S&P/TSX composite index rose 123.58 points, or 0.97 percent, to close at 12,810.21.
The Dow Jones industrial average rose 53.22 points, or 0.38 percent, to 14,034.98.
The Standard & Poor’s 500 Index was up 10.96 points, or 0.72 percent, at 1,530.75.
The Nasdaq Composite Index climbed 21.56 points, or 0.68 percent, to finish at 3,213.59.
