Canola beats downtrend in U.S. crop futures thanks to weaker loonie

Canola futures beat the trend in U.S. crop markets on Thursday thanks to a weaker loonie and ideas that recent declines had been overdone.

Generally favourable weather in Western Canada and the U.S. Midwest kept a lid on prices although speculation is turning to the risk the crop faces if there was to be an early frost.

Bargain buying in soy oil helped lift its price for the first time in 10 trading sessions

Wheat started out the day with a bit of strength from the recent demand from China, lower revised forecasts for Russian wheat production, frost in the Brazilian wheat crop and quality problems in the U.S. soft wheat and European wheat crops.

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However prices soon turned down following a sharp turn lower in the corn market. Rain forecast in the next few days for dry areas of the western corn belt seemed to be the spark for that drop. While Chicago wheat settled lower, Kansas winter wheat and Minneapolis hard red spring wheat were steady to slightly higher.

Soybeans also fell on the favourable Midwest weather forecast.

The cheaper corn prices lifted nearby Chicago feeder cattle futures but lowered deferred live cattle futures on thoughts that cheaper corn might cause feedlots to feed more cattle to heavier weights.

Favourable weekly economic reports in the U.S. lifted the American buck relative to most other currencies and that added downward pressure to U.S. crop futures.

Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2013    489.40    +4.40    +0.91%
Canola Jan 2014    493.10    +4.10    +0.84%

Canola Mar 2014    497.50    +5.20    +1.06%
Canola May 2014    500.50    +5.70    +1.15%
Canola Jul 2014    503.40    +5.70    +1.15%

Milling Wheat Oct 2013    254.00    unch    0.00%
Milling Wheat Dec 2013    257.00    unch    0.00%
Milling Wheat Mar 2014    264.00    unch    0.00%

Durum Wheat Oct 2013    293.00    unch    0.00%
Durum Wheat Dec 2013    297.00    unch    0.00%
Durum Wheat Mar 2014    307.00    unch    0.00%

Barley Oct 2013    189.00    unch    0.00%
Barley Dec 2013    194.00    unch    0.00%
Barley Mar 2014    194.00    unch    0.00%

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

Chicago
Soybeans Aug 2013    1357.75    -16.25    -1.18%
Soybeans Sep 2013    1234.25    -15.5    -1.24%
Soybeans Nov 2013    1192.5    -13.75    -1.14%
Soybeans Jan 2014    1198    -13    -1.07%
Soybeans Mar 2014    1200.75    -12    -0.99%
Soybeans May 2014    1200.75    -12    -0.99%

Soybean Meal Aug 2013    425.4    -9.7    -2.23%
Soybean Meal Sep 2013    397.7    -6.3    -1.56%
Soybean Meal Oct 2013    362.8    -6.6    -1.79%

Soybean Oil Aug 2013    42.49    +0.4    +0.95%
Soybean Oil Sep 2013    42.6    +0.33    +0.78%
Soybean Oil Oct 2013    42.68    +0.27    +0.64%

Corn Sep 2013    487.5    -11.5    -2.30%

Corn Dec 2013    467    -12    -2.51%
Corn Mar 2014    479.75    -11.75    -2.39%
Corn May 2014    487.5    -11.75    -2.35%
Corn Jul 2014    493.25    -12.25    -2.42%

Oats Sep 2013    339.75    -0.5    -0.15%
Oats Dec 2013    329.5    -2    -0.60%
Oats Mar 2014    334.5    -1.5    -0.45%
Oats May 2014    334.75    -1.5    -0.45%
Oats Jul 2014    339.75    -1.5    -0.44%

Wheat Sep 2013    658    -6.25    -0.94%
Wheat Dec 2013    670.5    -6.5    -0.96%
Wheat Mar 2014    681    -6.75    -0.98%
Wheat May 2014    687    -6    -0.87%
Wheat Jul 2014    682.75    -6.25    -0.91%

Minneapolis
Spring Wheat Sep 2013    741.75    +0.5    +0.07%
Spring Wheat Dec 2013    750.25    -0.75    -0.10%
Spring Wheat Mar 2014    761.25    -1    -0.13%
Spring Wheat May 2014    769    -1.25    -0.16%
Spring Wheat Jul 2014    777.5    -0.25    -0.03%

Kansas City
KCBT Red Wheat Sep 2013    706.75    unch    0.00%
KCBT Red Wheat Dec 2013    718    +1    +0.14%
KCBT Red Wheat Mar 2014    725.75    +0.25    +0.03%

KCBT Red Wheat May 2014    726.75    unch    0.00%
KCBT Red Wheat Jul 2014    713.75    -1    -0.14%

Light crude oil nearby futures in New York rose $2.86 at $107.89 US per barrel.

The Canadian dollar at noon was 96.73 cents US, down from 97.21 cents the previous trading day. The U.S. dollar at noon was $1.0338 Cdn.

The S&P 500 surpassed 1,700 on Thursday and U.S. stocks rose after economic data pointed to a modestly improving economy and the Federal Reserve kept its massive monetary stimulus in place.

Global central banks on Thursday also remained accommodative with European Central Bank President Mario Draghi reiterating the ECB’s rates will remain at their present level or lower for an “extended period” of time, Reuters reported.

Data on weekly U.S. initial jobless claims and national manufacturing came in better than expected, while construction spending dropped 0.6 percent in June, below forecasts calling for a 0.4 percent rise, Reuters reported.

The Toronto Stock Exchange composite index closed up 107.32 points or 0.86 percent at 12.593.96

The Dow Jones industrial average rose 126.95 points or 0.82 percent, to close at 15,626.49.

The S&P 500 gained 21.09 points or 1.25 percent, to 1,706.82.

The Nasdaq Composite added 49.37 points or 1.36 percent, to settle at 3,675.74.