After recent strong gains, crop markets took a breather on Thursday, collected profits and drifted down a little.
Canola edged higher at first, touching the highest level since July 23, 2008, but settled $4.50 per tonne lower at $607.50 on profit taking and the general rollback in crop markets.
Watch for the Statistics Canada grain stocks report Friday morning.
Wheat, the recent market leader, was pressured down by the weekly U.S. export report that showed a lower number than the previous two weeks. They were inflated by panic buying by North African countries fearful of public unrest over rising food prices.
Limiting wheat’s fall was concern over possible damage in the U.S. hard red winter wheat crop inflicted by well-below freezing temperatures that accompanied the recent blizzard.
The storm delivered medium to heavy amounts of snow in the eastern southern plains and Midwest, but the western plains got less snow and fields might be unprotected against the freezing weather this week and more cold forecast for next week.
Soybean and corn futures dipped, but were supported by larger than expected weekly export numbers.
Canada filled part of a Japanese tender for wheat. Japan today said the Canadian Wheat Board will supply about 37,000 tonnes of quality wheat, meeting Japan’s requirement for a minimum protein of 13.3 percent. The CWB did not offer grain to a Japanese tender last week because of the shortage of high protein wheat this year, but said recent progress with sourcing and transporting high grade wheat made it possible to bid on this week’s tender. It has been discussing the tight protein supply situation with Japan.
Traders continued to monitor the tense situation in Egypt where violence erupted Wednesday after a week of mostly peaceful demonstrations calling for president Hosni Mubarak to step down. Egypt is the world’s largest wheat buyer.
In Winnipeg, March canola fell $4.50 to $607.50 per tonne on 8,779 trades.
May fell $4.40 to $616 on 3,818 trades.
The new crop November 2011 contract fell $3.20 to $581.60.
The previous day’s best basis was $13.10 under the March contract according to ICE Futures Canada in Winnipeg.
The March contract 14-day Relative Strength Index was 62. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
March barley futures were steady and untraded at $194. May was steady at $200 per tonne.
Chicago March soybeans fell 8.25 cents to $14.355 per bushel.
March corn fell 6.75 cents to $6. 625 per bu.
March oats bucked the trend and rose 2.25 cents to $4.1575 per bu.
March Minneapolis hard spring wheat fell 11.75 cents to $9.985 per bu.
In New York, crude oil for March delivery fell 32 cents to $90.54 US per barrel.
The Canadian dollar at noon was $1. 01 US, down from 1. 0118 the previous trading day. The U.S. dollar at noon was 99.01 cents Cdn.
The Toronto Stock Exchange composite index rose about 161.06 points to 13,841.35.
The Standard & Poor’s 500 Index rose 3.07 points to 1,307.10.
Growth in the U.S. services sector in January was the fastest in more than five years and there was a sharp fall in weekly claims for jobless benefits, indicating the American economy is picking up speed.
