By D’Arce McMillan
Markets editor
Twitter @ darcemcmillan
Canola futures played catch up to the U.S. market on Wednesday, rising more than two percent.
There was good support from rising soybeans early, with the nearby contract hitting a one-month high, but there was a late sell off in a round of profit taking.
Canola might also have been supported by light rain in central and northeastern Saskatchewan and southern Manitoba today that will again set back harvest.
Some Canadian crushers have improved their basis or are bidding what they call special offers to get canola supplies.
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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.
U.S. market gains Tuesday and early today were related to the slow pace of harvest in the U.S. Midwest.
From the early week’s trade late Sunday night to the peak today, November soybeans had risen about five percent.
By the close today, after the sell off, the gain was reduced to 2.7 percent.
Soy oil showed a little life today after hitting a more than one month low on Tuesday. The nearby soyoil contract closed up 1.2 percent on unwinding of long soymeal-short soyoil spreads.
Corn retreated late on profit taking after the gains Tuesday and early today. December closed down three cents a bushel or a little less than one percent.
The rally was hard to feed when better weather has spread across the Midwest, reviving the pace of harvest.
One analyst told Reuters he expects basis levels in the U.S. to crash soon as on-farm storage is filling up and farmers will soon be forced to move more grain to elevators to free up space.
The slow harvest and slow pace of farmer selling had driven soybean basis higher recently as crushers and exporters sought supply.
Another Reuters story though noted that the delayed harvest has lessened the overall storage problem in the U.S.
Livestock feeders, millers and exporters have been drawing down old crop stocks for the last month, freeing up storage for the crop now coming off.
Chicago and Kansas wheat today rose about a half percent. Chicago soft winter wheat was supported by the slow pace of seeding that crop in the Midwest. Minneapolis spring wheat was little changed.
The Toronto Stock Exchange and Wall Street gave back Tuesday’s gains. The shootings in Ottawa today and fear of domestic terrorism shook investors. Also, some corporate quarterly profit reports were less than expected.
China reports monthly manufacturing statistics overnight. If weaker than expected that could weigh on commodity prices tomorrow.
The Toronto Stock Exchange composite fell 235.64 points or 1.62 percent to 14,312.07.
The Dow Jones industrial average fell 151.05 points, or 0.91 percent, to 16,463.76, the S&P 500 lost 14.04 points, or 0.72 percent, to 1,927.24 and the Nasdaq Composite dropped 36.63 points, or 0.83 percent, to 4,382.85.
Light crude oil nearby futures in New York dropped $1.97 at $80.52 US per barrel.
The Canadian dollar at noon was 89.13 cents US, unchanged from the previous trading day. The U.S. dollar at noon was $1.1219 Cdn.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2014 414.90 +10.90 +2.70%
Canola Jan 2015 417.10 +10.00 +2.46%
Canola Mar 2015 421.90 +10.00 +2.43%
Canola May 2015 425.00 +10.10 +2.43%
Canola Jul 2015 426.10 +10.10 +2.43%
Milling Wheat Dec 2014 225.00 unch 0.00%
Milling Wheat Mar 2015 230.00 -1.00 -0.43%
Milling Wheat May 2015 233.00 -1.00 -0.43%
Durum Wheat Dec 2014 356.50 unch 0.00%
Durum Wheat Mar 2015 357.50 unch 0.00%
Durum Wheat May 2015 357.50 unch 0.00%
Barley Dec 2014 130.00 +3.00 +2.36%
Barley Mar 2015 133.00 +5.00 +3.91%
Barley May 2015 133.00 +5.00 +3.91%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Nov 2014 962.75 -1.5 -0.16%
Soybeans Jan 2015 969.75 -2 -0.21%
Soybeans Mar 2015 977 -2 -0.20%
Soybeans May 2015 984.75 -2.25 -0.23%
Soybeans Jul 2015 991 -1.75 -0.18%
Soybeans Aug 2015 992.25 -1.75 -0.18%
Soybean Meal Dec 2014 338 -4.9 -1.43%
Soybean Meal Jan 2015 330 -4.2 -1.26%
Soybean Meal Mar 2015 321.5 -3.5 -1.08%
Soybean Oil Dec 2014 32.14 +0.38 +1.20%
Soybean Oil Jan 2015 32.4 +0.37 +1.16%
Soybean Oil Mar 2015 32.66 +0.36 +1.11%
Corn Dec 2014 353 -3 -0.84%
Corn Mar 2015 367 -2.5 -0.68%
Corn May 2015 376 -2.5 -0.66%
Corn Jul 2015 383.25 -2.25 -0.58%
Corn Sep 2015 390.25 -2.5 -0.64%
Oats Dec 2014 354 +3 +0.85%
Oats Mar 2015 340.5 +1.5 +0.44%
Oats May 2015 333.5 -0.25 -0.07%
Oats Jul 2015 325.75 +2.25 +0.70%
Oats Sep 2015 328.75 +2 +0.61%
Wheat Dec 2014 522.25 +3 +0.58%
Wheat Mar 2015 536 +3 +0.56%
Wheat May 2015 543.75 +3.25 +0.60%
Wheat Jul 2015 549.75 +2.5 +0.46%
Wheat Sep 2015 559.5 +2.75 +0.49%
Minneapolis
Spring Wheat Dec 2014 568.75 -0.25 -0.04%
Spring Wheat Mar 2015 578.25 unch 0.00%
Spring Wheat May 2015 585.5 -0.5 -0.09%
Spring Wheat Jul 2015 593.5 -0.25 -0.04%
Spring Wheat Sep 2015 601 -0.75 -0.12%
Kansas City
Hard Red Wheat Dec 2014 605.25 +3 +0.50%
Hard Red Wheat Mar 2015 606.25 +2.5 +0.41%
Hard Red Wheat May 2015 605 +2.5 +0.41%
Hard Red Wheat Jul 2015 597 +1.25 +0.21%
Hard Red Wheat Sep 2015 608.5 +2 +0.33%
