Canola climbs again on disciplined farmer selling

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Published: December 9, 2014

Twitter @ darcemcmillan

Canola futures rose for a fourth straight session, supported by stronger soy markets and disciplined farmer selling.

January canola gained $4.80 to $433.90 per tonne, reaching a two-week high.

Soybeans, meal and oil also rose, as did corn.

Wheat futures fell.

Soybeans were supported by the strong pace of exports and good soymeal demand.

Traders in the U.S. crop markets were positioning ahead of Wednesday’s U.S. Department of Agriculture monthly supply and demand reports.

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The reports are expected to lower soybean ending stocks reflecting strong exports of the oilseed, but raise corn and wheat ending stock forecasts because of disappointing exports so far this year.

Soyoil was supported by tightening U.S. cash soyoil stocks, reflecting poor oil yields in the 2014 harvest.

Corn rose today on short covering and positioning ahead of the USDA report.

Some traders think U.S. corn is competitively priced and that could support stronger exports in the future.

South American weather is generally favourable for crops and that limited gains. More rain is forecast for Brazil over the next two weeks.

Wheat contracts in all three exchanges fell on technical selling, diminishing worries about Russia curbing grain exports and strong competition from French wheat.

Russia is not discussing grain export restrictions, Interfax news agency quoted deputy prime minister Arkady Dvorkovich as saying. SovEcon, a private consulting firm, said Russia’s grain exports will remain at high levels in December, fueled by a weaker rouble, Reuters reported.

Australia’s government cut its forecast of 2014-15 wheat exports to 16.99 million tonnes, down six percent from its previous view. Last year it exported 18.3 million tonnes.

Last week, Australia pegged its wheat crop at 23.2 million tonnes, down a million tonnes from a previous forecast because of dry, hot weather.

Light crude oil nearby futures in New York rose 77 cents to US$63.82 per barrel.

The Canadian dollar at noon was US87.55 cents, up from 87.17 cents the previous trading day. The U.S. dollar at noon was C$1.1422.

Stock market investors were nervous about the plunge in oil prices to five year lows before the slight recovery today and also political turmoil in Greece

The Greek government moved forward the date of a vote on a new president. It is a political gamble. If the government can’t get opposition lawmakers to support its choice it might force a a parliamentary election that anti-austerity party Syriza would be favoured to win, raising the potential of throwing the country back into financial turmoil.

U.S. markets were were down in the morning but gains in technology and energy shares pared index losses.

The Toronto Stock Exchange composite rose 51.56 points or 0.36 percent to 14,195.73.

The Dow Jones industrial average fell 51.02 points, or 0.29 percent, to 17,801.46.

The S&P 500 lost 0.55 point, or 0.03 percent, to 2,059.76.

The Nasdaq Composite added 25.77 points, or 0.54 percent, to 4,766.47.

 

Winnipeg ICE Futures Canada dollars per tonne

Canola Jan 2015       433.90       +4.80       +1.12%

Canola Mar 2015       429.30       +2.90       +0.68%

Canola May 2015       430.90       +2.10       +0.49%

Canola Jul 2015       431.80       +1.00       +0.23%

Canola Nov 2015       429.30       +0.90       +0.21%

 

Milling Wheat Dec 2014       226.00       -5.00       -2.16%

Milling Wheat Mar 2015       234.00       -5.00       -2.09%

Milling Wheat May 2015       237.00       -5.00       -2.07%

 

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       174.00       unch       0.00%

Barley Mar 2015       177.00       unch       0.00%

Barley May 2015       179.00       unch       0.00%

 

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

 

Chicago

Soybeans Jan 2015       1049.25       +5.5       +0.53%

Soybeans Mar 2015       1055.5       +5.75       +0.55%

Soybeans May 2015       1062       +6       +0.57%

Soybeans Jul 2015       1066.5       +5.75       +0.54%

Soybeans Aug 2015       1063.75       +5.25       +0.50%

Soybeans Sep 2015       1039.25       +4.25       +0.41%

 

Soybean Meal Dec 2014       411.6       +10.1       +2.52%

Soybean Meal Jan 2015       375.3       +5.2       +1.41%

Soybean Meal Mar 2015       361.7       +3.6       +1.01%

 

Soybean Oil Dec 2014       31.91       +0.14       +0.44%

Soybean Oil Jan 2015       31.99       +0.14       +0.44%

Soybean Oil Mar 2015       32.21       +0.14       +0.44%

 

Corn Dec 2014       383       +5.5       +1.46%

Corn Mar 2015       395.25       +5       +1.28%

Corn May 2015       403.75       +5       +1.25%

Corn Jul 2015       410.25       +5       +1.23%

Corn Sep 2015       415.5       +5.5       +1.34%

 

Oats Dec 2014       301       -3.75       -1.23%

Oats Mar 2015       313.5       -1       -0.32%

Oats May 2015       314.5       -0.25       -0.08%

Oats Jul 2015       315.5       unch       0.00%

Oats Sep 2015       314       unch       0.00%

 

Wheat Dec 2014       600.5       -9.5       -1.56%

Wheat Mar 2015       585.75       -12.25       -2.05%

Wheat May 2015       589.5       -12.5       -2.08%

Wheat Jul 2015       592.25       -11.25       -1.86%

Wheat Sep 2015       600.5       -10.75       -1.76%

 

Minneapolis

Spring Wheat Dec 2014       604       -13       -2.11%

Spring Wheat Mar 2015       608       -14       -2.25%

Spring Wheat May 2015       616.75       -12.75       -2.03%

Spring Wheat Jul 2015       624.75       -11.25       -1.77%

Spring Wheat Sep 2015       632.5       -11       -1.71%

 

Kansas City

Hard Red Wheat Dec 2014       617       -17       -2.68%

Hard Red Wheat Mar 2015       622       -17.25       -2.70%

Hard Red Wheat May 2015       627       -16.5       -2.56%

Hard Red Wheat Jul 2015       630.25       -13.25       -2.06%

Hard Red Wheat Sep 2015       640       -13.5       -2.07%

 

 

 

About the author

D'Arce McMillan

Markets editor, Saskatoon newsroom

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