Canola futures rose Thursday, supported by commercial demand and rising soybeans.
Exporters were buying to cover business with Japan.
Soybeans rose with help from data showing private sector factories in China were at their busiest in eight months in October. There is growing data that indicates a revival in China’s economy and that could spur demand for soybeans.
Commodities and equities in general were helped by bullish U.S. consumer confidence and private-sector jobs data.
Wet conditions in Argentina and dry conditions in Brazil also supported oilseeds. Dry areas of Brazil, experiencing a heat wave this week, are expected to get rain in the next few days. Argentina is expected to get drier and warmer for the next few days but then rain returns next week.
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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.
November canola closed at $625.40, up $6.60.
January closed at $617.90, up $2.30.
• The Canadian Grain Commission’s September monthly grain export report says that in the first two months of the crop year China has imported 385,500 tonnes of canola, up from 359,000 tonnes in the same period last year.
Japan is the biggest buyer with 390,400 tonnes, up from 349,600 last year at the same time.
Mexico comes in third with 224,000 tonnes imported, up from 208,500 last year at the same time.
The U.S. has imported 33,600 tonnes of canola seed, up from 31,000 tonnes last year at this time.
The total for the two months was 1.12 million tonnes, up 2.8 percent over last year at the same time.
• Emergence of the U.S. winter wheat crop had been way behind but it now catching up to the long term average. However, because of the dry conditions in the central plains, including Kansas, the crop seedlings are in poor shape.
Only 40 percent is rated good to excellent, the lowest since the USDA began recording fall crop conditions in the 1980s.
Last year at this time it was 46 percent and that was considered poor.
• SovEcon, an agricultural analyst in Russia, trimmed it forecast for Russia’s 2012 wheat crop to 37.5 million tonnes, from 38 million previously. That is the smallest since 2003-04.
Russian analysts expected the country’s wheat exports in November will be around 1.2-1.5 million tonnes, down abut a million from the total in October.
Winnipeg (per tonne)
Canola Nov 12 $625.40, up $6.60 +1.07%
Canola Jan 13 $617.90, up $2.30 +0.37%
Canola Mar 13 $614.10, up $1.60 +0.26%
Canola May 13 $609.30, up $1.10 +0.18%
Milling Wheat Dec 12 $308.50, unchanged
Milling Wheat Mar 13 $318.00, unchanged
Milling Wheat May 13 $321.00, unchanged
Durum Wheat Dec 12 $312.40, unchanged
Durum Wheat Mar 13 $319.00, unchanged
Durum Wheat May 13 $323.00, unchanged
Barley Dec 12 $250.00, unchanged
Barley Mar 13 $253.00, unchanged
Barley May 13 $254.00, unchanged
Chicago (per bushel)
Soybeans (P) Nov 12 $15.585, up 11.5 cents +0.74%
Soybeans (P) Jan 13 $15.60, up 11.25 +0.73%
Soybeans (P) Mar 13 $15.335, up 9.75 +0.64%
Soybeans (P) May 13 $14.93, up 14.75 +1.00%
Corn (P) Dec 12 $7.51, down 4.75 -0.63%
Corn (P) Mar 13 $7.535, down 3.5 -0.46%
Corn (P) May 13 $7.495, down 3.0 -0.40%
Oats (P) Dec 12 $3.8025, down 8.75 -2.25%
Oats (P) Mar 13 $3.89, down 8.0 -2.02%
Oats (P) May 13 $3.8775, down 10.25 -2.58%
Minneapolis (per bushel)
Spring Wheat Dec 12 $9.4325, up 1.25 +0.13%
Spring Wheat Mar 13 $9.49, up 1.75 +0.18%
Spring Wheat May 13 $9.54.5, up 0.75 +0.08%
Spring Wheat Jul 13 $9.545, unchanged
Light crude oil in New York rose 85 cents to $97.09 per barrel.
The Bank of Canada noon rate for the loonie was $1.0027 US, up from $1.0004 the day before.
The U.S. buck was 99.73 cents Cdn.
In early tallies:
The Toronto Stock Exchange’s S&P/TSX composite index rose 76.85 points, or 0.62 percent, to close at 12,499.76.
The Dow Jones industrial average rose 136.16 points, or 1.04 percent, to close at 13,232.62.
The S&P 500 rose 15.43 points, or 1.09 percent, to finish at 1,427.59.
The Nasdaq Composite climbed 42.83 points, or 1.44 percent, to wrap at 3,020.06.
