Canola breaks above range; US futures rise

Electronic trading in Chicago corn, wheat, cattle, hogs and other contracts was disrupted by a technical problem Tuesday.

Pit trading continued. ICE Futures canola trade was not affected.

Crop markets generally rose in positioning ahead of Wednesday’s USDA monthly supply and demand report.

Canola futures rose, breaking above the top end of a range they had traded in for several days. May climbed as high as $471.40, topping the previous recent high of $469.60 set March 19.

May settled at $468, slightly higher than the recent strongest close of $467.90, also set March 19.

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The improved outlook for rail shipping is injecting a bit of optimism into the canola market. Canola is cheap compared to other oilseeds and would have to rally a long way to make up the deficit.

Canola’s rise was impressive considering that the Canadian dollar also rose, benefiting from the results of the Quebec election. With the Liberals in a majority government, the risk of an independence referendum fades into the background.

Soybeans rose, mostly on the expectation that Wednesday’s USDA report will trim U.S. soybean ending stocks. Analysts, on average, expect stocks to fall to 139 million bushels, the smallest in five years.

The analysts’ average for USDA’s Brazilian soybean harvest forecast is 87.43 million bushels.

Corn edged higher, also on the expectation that U.S. corn year-end stocks will be trimmed.

Watch Producer.com and my Twitter feed @ darcemcmillan for quick details and analysis of the USDA report when it comes out Tuesday morning.

Hard red winter wheat rose on the deterioration of the crop in Kansas, Oklahoma and Texas in the past week and on the outlook that rain storms predicted for this week and next week will benefit only eastern parts of the southern Plains. Driest areas in the west are not expected to benefit much.

These storms will also bring colder weather. Temperatures could dip below freezing next Monday and Tuesday mornings in parts of eastern Kansas and Oklahoma, but should not get cold enough to damage the developing crop, Reuters reported.

Argentina’s Rosario grains hub will be brought to a standstill in a 24-hour strike on Thursday, the local head of the powerful CGT labour union told Reuters on Tuesday, as port workers and truck drivers plan to protest high inflation, Reuters reported.

China has allowed Brazilian corn imports to start this month, a further blow to U.S. exports to the world’s No. 2 consumer of the grain already hurt by the discovery of an unapproved genetically modified strain in shipments, Reuters reported.

Winnipeg ICE Futures Canada dollars per tonne

Canola May 2014 468.00 +7.00 +1.52%

Canola Jul 2014 477.90 +7.10 +1.51%

Canola Nov 2014 492.30 +6.60 +1.36%

Canola Jan 2015 499.60 +6.50 +1.32%

Canola Mar 2015 506.40 +6.40 +1.28%

Milling Wheat May 2014 219.00 +2.00 +0.92%

Milling Wheat Jul 2014 217.00 +2.00 +0.93%

Milling Wheat Oct 2014 219.00 +1.00 +0.46%

Durum Wheat May 2014 250.00 unch 0.00%

Durum Wheat Jul 2014 250.00 unch 0.00%

Durum Wheat Oct 2014 252.00 unch 0.00%

Barley May 2014 130.50 unch 0.00%

Barley Jul 2014 128.50 unch 0.00%

Barley Oct 2014 128.50 unch 0.00%

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

Chicago

Soybeans May 2014 1482.5 +18.25 +1.25%

Soybeans Jul 2014 1461.5 +13.25 +0.91%

Soybeans Aug 2014 1383.25 +10.5 +0.76%

Soybeans Sep 2014 1267 +10 +0.80%

Soybeans Nov 2014 1217.5 +9.25 +0.77%

Soybeans Jan 2015 1222.5 +9.25 +0.76%

Soybean Meal May 2014 478.1 +3.8 +0.80%

Soybean Meal Jul 2014 468.1 +3.4 +0.73%

Soybean Meal Aug 2014 438.2 +2.1 +0.48%

Soybean Oil May 2014 42.11 +0.68 +1.64%

Soybean Oil Jul 2014 42.32 +0.67 +1.61%

Soybean Oil Aug 2014 42.16 +0.63 +1.52%

Corn May 2014 507 +7.75 +1.55%

Corn Jul 2014 513 +7.75 +1.53%

Corn Sep 2014 511.75 +6.25 +1.24%

Corn Dec 2014 513 +7.5 +1.48%

Corn Mar 2015 520 +8 +1.56%

Oats May 2014 435 +16 +3.82%

Oats Jul 2014 370 +7.5 +2.07%

Oats Sep 2014 359.25 +7.5 +2.13%

Oats Dec 2014 347.25 +6.75 +1.98%

Oats Mar 2015 344 +5 +1.47%

Wheat May 2014 681 +4.75 +0.70%

Wheat Jul 2014 689.25 +5.75 +0.84%

Wheat Sep 2014 698.75 +6 +0.87%

Wheat Dec 2014 712 +5.75 +0.81%

Wheat Mar 2015 723.75 +5.75 +0.80%

Minneapolis

Spring Wheat May 2014 723.25 +1 +0.14%

Spring Wheat Jul 2014 728.25 +2.75 +0.38%

Spring Wheat Sep 2014 735.25 +3.25 +0.44%

Spring Wheat Dec 2014 746.75 +4.25 +0.57%

Spring Wheat Mar 2015 754 +4.75 +0.63%

Kansas City

KC HRW Wheat May 2014 741.5 +2 +0.27%

KC HRW Wheat Jul 2014 749 +3 +0.40%

KC HRW Wheat Sep 2014 756.25 +2.75 +0.36%

KC HRW Wheat Dec 2014 767.5 +2.75 +0.36%

KC HRW Wheat Mar 2015 772 +2.75 +0.36%

Light crude oil nearby futures in New York rose $2.12 at $102.56 US per barrel.

The Canadian dollar at noon was 91.56 cents US, up from 91.15 cents the previous trading day. The U.S. dollar at noon was $1.0922 Cdn.

The Toronto Stock Exchange composite in late session trade is up 105.36 points of 0.74 percent at 14,375.69.

Major U.S. stock indexes were also higher in late session trade.

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