Canola continued its December swan dive this morning, falling $3.70 per tonne during a shortened Christmas Eve trading session.
For most of the fall, canola prices traded in a narrow band around $500 per tonne. But with a record Canadian harvest weighing down the market, canola futures in Winnipeg have dropped $60 per tonne over the last 30 days. March canola closed today at $442.00 per tonne.
The canola decline persisted despite a rebound in soybean futures this morning. March soybeans in Chicago rallied 3.00 cents per bu. to close at $13.2275.
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U.S. Department of Agriculture export data propelled soybeans slightly higher. The USDA said today that an unknown buyer purchased 185,000 tonnes of beans and Egypt bought 114,000 tonnes.
Analysts attributed canola’s decline to technical weakness and a lack of market participants prior to the Christmas break.
The slump in wheat prices also continued today. Minneapolis, Chicago and Kansas City futures all posted losses.
Massive wheat crops in exporting countries like Canada and Australia, combined with positive forecasts for the Argentina crop, has created a buyers market for wheat. Nearby contracts in Chicago fell 3.25 cents to close at $6.0625 per bu.
Fifteen months ago wheat traded above $9.00 per bu. in Chicago. From Jan 1 until December 24 Chicago wheat futures have fallen 22 percent, the largest annual decline in the last five years.
Minneapolis wheat futures dropped 4.0 cents this morning and were trading at $6.40 per bu. near close.
March corn futures were steady in light trading, gaining 0.25 cents and settling at $4.345 per bu.
The loonie fell .07 cents against the U.S. dollar today, closing at 0.9417 US.
Merry Christmas.
