Canola bounce prompts hope short covering rally

It was another down day for wheat and corn Monday, but canola enjoyed a modest rebound on thoughts the oilseed was over sold.

This sparked hopes that the price crash has come to an end.

But others note that on long term price charts, there is a chance of a further fall to about $370-$380, the level of the spring of 2010.

Today, rising soybeans, lifted by forecasts for hotter weather in parts of South America and on strong weekly U.S. soybean export clearances, also supported canola.

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U.S. grains: Soybean futures inch higher on China trade optimism

U.S. soybean futures firmed on Wednesday as traders remained hopeful for progress in trade talks with top soy buyer China and on a Japanese proposal to increase U.S. soy purchases, deals that could help U.S. farmers avert major losses.

With canola crush margins very attractive, there was new buying interest from domestic crushers.

January canola closed at $444.00, up $4.10 or almost one percent. March closed at $454.40, up $4.10 or abort 0.9 percent.

Wheat fell on perceptions that the market is amply supplied and corn fell for the third session in a row on worries that China could reject more shipments of American corn because of traces of an unapproved GM variety. Also, weekly U.S. corn export inspections came in below expectations.

Malaysian palm oil futures rose, snapping a five-session slide, on bargain buying, slightly better exports and prospects of lower production, Reuters reported.

Strong rains will continue over central and northern Brazil this week, forecaster Somar said, but southern areas will likely remain hot and dry, Reuters reported

Soy meal rose again today, but soy oil fell after the U.S. National Oilseed Processors Association said stocks of soy oil were higher than traders had expected.

Winnipeg ICE Futures Canada dollars per tonne

Canola Jan 2014 444.00 +4.10 +0.93%

Canola Mar 2014 454.40 +4.10 +0.91%

Canola May 2014 463.30 +4.30 +0.94%

Canola Jul 2014 471.10 +5.00 +1.07%

Canola Nov 2014 482.90 +4.70 +0.98%

Milling Wheat Mar 2014 195.00 -6.00 -2.99%

Milling Wheat May 2014 205.00 -6.00 -2.84%

Milling Wheat Jul 2014 209.00 -6.00 -2.79%

Durum Wheat Mar 2014 246.00 -2.00 -0.81%

Durum Wheat May 2014 250.00 -2.00 -0.79%

Durum Wheat Jul 2014 250.00 -2.00 -0.79%

Barley Mar 2014 147.00 -10.00 -6.37%

Barley May 2014 148.00 -10.00 -6.33%

Barley Jul 2014 148.00 -10.00 -6.33%

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

Chicago

Soybeans Jan 2014 1337.75 +10.25 +0.77%

Soybeans Mar 2014 1325.25 +11.5 +0.88%

Soybeans May 2014 1308.25 +11.25 +0.87%

Soybeans Jul 2014 1294 +10 +0.78%

Soybeans Aug 2014 1261 +7 +0.56%

Soybeans Sep 2014 1202.75 +5.5 +0.46%

Soybean Meal Jan 2014 439 +6.4 +1.48%

Soybean Meal Mar 2014 429.8 +6.6 +1.56%

Soybean Meal May 2014 419.3 +6.6 +1.60%

Soybean Oil Jan 2014 39.75 -0.08 -0.20%

Soybean Oil Mar 2014 40.1 -0.1 -0.25%

Soybean Oil May 2014 40.49 -0.1 -0.25%

Corn Mar 2014 423.25 -2.25 -0.53%

Corn May 2014 431.75 -2 -0.46%

Corn Jul 2014 438.25 -2.5 -0.57%

Corn Sep 2014 444 -2 -0.45%

Corn Dec 2014 450.25 -2.25 -0.50%

Oats Mar 2014 345.5 +5.5 +1.62%

Oats May 2014 327.5 +6 +1.87%

Oats Jul 2014 322.5 +4.5 +1.42%

Oats Sep 2014 322.75 +4.5 +1.41%

Oats Dec 2014 305.75 -4.25 -1.37%

Wheat Mar 2014 621.75 -7 -1.11%

Wheat May 2014 627.75 -7 -1.10%

Wheat Jul 2014 629.25 -7.75 -1.22%

Wheat Sep 2014 638.25 -7.75 -1.20%

Wheat Dec 2014 651.75 -8.25 -1.25%

Minneapolis

Spring Wheat Mar 2014 654.25 -6.25 -0.95%

Spring Wheat May 2014 665 -6.5 -0.97%

Spring Wheat Jul 2014 675.5 -6 -0.88%

Spring Wheat Sep 2014 685.25 -5.5 -0.80%

Spring Wheat Dec 2014 696.5 -5.5 -0.78%

Kansas City

KCBT Red Wheat Mar 2014 665.5 -7 -1.04%

KCBT Red Wheat May 2014 668.75 -7 -1.04%

KCBT Red Wheat Jul 2014 667.5 -6.75 -1.00%

KCBT Red Wheat Sep 2014 677.75 -6.25 -0.91%

KCBT Red Wheat Dec 2014 689.25 -6.25 -0.90%

Light crude oil nearby futures in New York rose 88 cents at $97.48 US per barrel.

The Canadian dollar at noon was 94.54 cents US, up from 94.38 cents the previous trading day. The U.S. dollar at noon was $1.0577 Cdn.