Canola closed a little lower Tuesday on late session commercial hedging after being higher in the morning.
Soybeans hung on to gains posted after USDA today slashed its forecast of the 2011-12 soybean carryout to 175 million bushels, down 35 million from the May estimate and below the average trade expectation of 189 million.
It also cut its forecast of 2012-13 ending stocks by five million bushels to 140 million, slightly below the average trade estimate of 143 million.
Corn fell because the forecast for the Midwest shifted to a wetter trend from what had been a dry outlook. Also, the USDA report did not lower year end corn stocks, as had been expected.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
July canola closed at $607.40 per tonne, down 90 cents.
November closed at $572.60, down $1.60.
The forecast for this week on the Prairies has turned a little warmer and drier although Thursday and Saturday could prove wet.
• USDA left this crop year’s corn carry out estimate at 851 million bushels, unchanged from May and more than the average of traders’ expectations of 828 million. Traders had expected that the recent lower prices would encourage more consumption.
• USDA did not alter its 2012-13 U.S. corn record yield forecast of 166 bu. per acre. That was not a big surprise given the early stage of the growing season, but many analysts believe that if hot dry weather continues in the Midwest, the department will have to lower the forecast.
• USDA lowered its forecast for world wheat production in 2012-13 to 672.06 million tonnes, down 5.5 million tonnes from May, due mostly to reductions in Russian and European Union crops.
• USDA lowered its U.S. winter wheat production forecast to 1.684 billion bu., down from 1.694 billion in May, but traders on averaged expected a bigger cut, to 1.639 billion.
USDA pegged all U.S. wheat production at 2.234 billion bu., which was higher than the trade guess of 2.206 billion.
Winnipeg (per tonne)
Canola Jul 12 $607.40, down $0.90 -0.15%
Canola Nov 12 $572.60, down $1.60 -0.28%
Canola Jan 13 $577.00, down $2.00 -0.35%
Canola Mar 13 $581.00, down $2.20 -0.38%
The best basis the previous day in the par region was $14 above the July contract, according to ICE Futures Canada.
The 14-day relative strength index for the July contract was 47.
Western Barley Jul 12 $237.00, unchanged
Western Barley Oct 12 $210.00, unchanged
Milling Wheat Oct 12 $252.70, unchanged
Milling Wheat Dec 12 $260.00, unchanged
Milling Wheat Mar 13 $269.00, unchanged
Durum Wheat Oct 12 $275.50, unchanged
Durum Wheat Dec 12 $280.00, unchanged
Durum Wheat Mar 13 $286.60, unchanged
Barley Oct 12 $182.30, unchanged
Barley Dec 12 $185.00, unchanged
Barley Mar 13 $188.00, unchanged
Chicago (per bushel)
Soybeans (P) Jul 12 $14.35, up 10.25 cents +0.72%
Soybeans (P) Aug 12 $14.0125, up 2.25 +0.16%
Soybeans (P) Sep 12 $13.64, up 3.0 +0.22%
Soybeans (P) Nov 12 $13.37, up 5.75 +0.43%
Corn (P) Jul 12 $5.84, down 8.0 -1.35%
Corn (P) Sep 12 $5.265, down 14.0 -2.59%
Corn (P) Dec 12 $5.225, down 11.5 -2.15%
Oats (P) Jul 12 $2.9575, up 0.5 +0.17%
Oats (P) Sep 12 $2.9025, down 1.25 -0.43%
Oats (P) Dec 12 $2.76, down 12.5 -4.33%
Minneapolis (per bushel)
Spring Wheat Jul 12 $7.6425, down 15.5 cents -1.99%
Spring Wheat Sep 12 $7.465 down 16.0 -2.10%
Spring Wheat Dec 12 $7.525 down 14.5 -1.89%
Nearby light crude oil in New York rose 62 cents to $83.32.
The Bank of Canada noon rate for the Canadian dollar was 97.39 cents US, up from 97.25 the previous trading day.
The U.S. dollar at noon was $1.0268 Cdn.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 95.52 points, or 0.84 percent, at 11,497.30.
The Dow Jones industrial average was up 157.77 points, or 1.27 percent, at 12,569.00.
The Standard & Poor’s 500 Index was up 14.59 points, or 1.11 percent, at 1,323.52.
The Nasdaq Composite Index was up 31.83 points, or 1.13 percent, at 2,841.56.
