Canola was down sharply in the morning but battled back later in the day and closed only modestly lower.
New crop November was almost steady.
March closed at $520.30 per tonne, down $3.60 or 0.7 percent. November closed at $508.70, down 40 cents.
The price began to climb back on buying for domestic crushers and export business.
Corn fell the most, with nearby March closing at $6.115 US per bushel, down 40 cents or about six percent.
• USDA increased its domestic corn production estimate marginally, where analysts had expected a small dip. It kept steady its estimates of corn consumption by feeders and the ethanol industry. Exports are projected slightly higher reflecting the strong pace of sales to date and reduced prospects for Argentina.
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U.S. grains: Soybean futures set two-week high on US weather worry, soyoil rally
Chicago Board of Trade soybean futures touched a two-week high on Friday on worries that heat may threaten U.S. crops and expectations that the country’s biofuel policy would boost demand for soyoil, analysts said.
The result was a projection of corn ending stocks at 846 million bushels, two million bu. lower than its estimate last month but 13 percent more than what traders expected, on average, in a Reuters survey.
China’s corn import forecast was increased to four million tonnes from three.
Soybean U.S. ending stocks at 275 million bu. were 18 percent higher than pre report forecasts.
USDA was cautious about the effect of dry weather on South America. It cut its estimate of corn production in Argentina by 10 percent or three million tonnes, which was not as much as some traders had expected. It held steady on Brazil corn production, which analysts expect will drop.
It cut Brazil’s soybean outlook to 74 million tonnes from 75 million. Argentina’s soybean crop was reduced 1.5 million tonnes to 50.5 million.
USDA pegged U.S. winter wheat area at 41.947 million acres, up 3.2 percent from last year and 2.5 percent more than trade expectations.
Global wheat supplies for 2011-12 are projected 2.7 million tonnes higher with production raised for Kazakhstan, Brazil, and Russia.
Global wheat ending stocks for 2011-12 are projected 1.5 million tonnes higher at 210 million.
• The rain in Argentina has stopped and it was a bit better than expected at the start of the week. There is a potential for more rain later next week but at this point it does not appear to be a big rain event. Farmers in Argentina say this week’s rain has helped but damage has already been done.
• Strong demand at auctions for Italian and Spanish government debt eased fears over the region’s debt crisis.
• U.S. economic recovery sagged in December with U.S. retail sales rising at the weakest pace in seven months. Also first-time claims for jobless benefits increased.
Winnipeg (per tonne)
Canola Jan 12 $513.30, down $3.60 (-0.70%)
Canola Mar 12 $520.30, down $3.60 (-0.69%)
Canola May 12 $524.50, down $3.20 (-0.61%)
Canola Nov 12 $508.70, down $0.40 (-0.08%)
The previous trading day’s best basis was $12 per tonne off the March contract, said the ICE Futures Canada exchange in Winnipeg.
The January contract’s 14-day Relative Strength Index was 50.
Western Barley Mar 12 $213.00, unchanged
Chicago (per bushel)
Soybeans Jan 12 $11.735, down 24.0 cents (-2.00%)
Soybeans Mar 12 $11.825, down 20.5 (-1.70%)
Soybeans Nov 12 $11.885, down 16.0 (-1.33%)
Corn Mar 12 $6.115, down 40.0 (-6.14%)
Corn Dec 12 $5.61, down 21.5 (-3.69%)
Oats Mar 12 $2.84, down 14.5 (-4.86%)
Oats Dec 12 $3.00, down 16.0 (-5.06%)
Minneapolis (per bushel)
Spring Wheat Mar 12 $8.075, down 9.0 cents (-1.10%)
Spring Wheat May 12 $7.925, down 13.75 (-1.71%)
Spring Wheat Dec 12 $7.71, down 18.25 (-2.31%)
Nearby light crude oil in New York fell $1.77 to settle at $99.10 a barrel.
The Canadian dollar at noon was 98.06 cents US, down from 98.12 the previous trading day. The U.S. dollar at noon was $1.0198 Cdn.
The Toronto Stock Exchange composite closed up 13.38 points, or 0.11 percent, at 12,274.32.
The Standard and Poor’s 500 closed up 3.02 points, or 0.23 percent, to finish unofficially at 1,295.50.
