Canola futures rose Monday on technical strength, tight domestic supplies and on higher soybean prices.
The loonie, which stayed below par, added to the gains, but increased farmer selling put a top on the market.
Several hot dry days are expected in Argentina that will stress crops, particularly corn, until forecasted rain arrives late this week.
While large South American soybean and corn crops are expected, any weather that could shave yields tends to support crop prices.
Also, traders believe that crop export infrastructure constrains in Brazil will force global soybean buyers to continue to source some beans from the United States.
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Feed Grains Weekly: Price likely to keep stepping back
As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
March canola closed at $617.80, up $5.30. November canola closed at $558.40, up $2.
There were light showers in the U.S. Midwest and Central Plains on the weekend and a more showers expected this week in the Midwest, but amounts are not enough to make much of a difference to the continuing drought.
Corn closed up one percent today and posted a strong technical performance, holding above the 50-day moving average.
Winnipeg ICE Futures (per tonne)
Canola Mar 13 $617.80, up $5.30 +0.87%
Canola May 13 $607.00, up $4.90 +0.81%
Canola Jul 13 $596.30, up $4.50 +0.76%
Canola Nov 13 $558.40, up $2.00 +0.36%
Milling Wheat Mar 13 $291.00, unchanged
Milling Wheat May 13 $294.00, unchanged
Milling Wheat Jul 13 $296.00, unchanged
Durum Wheat Mar 13 $312.40, unchanged
Durum Wheat May 13 $316.40, unchanged
Durum Wheat Jul 13 $319.40, unchanged
Durum Wheat Oct 13 $304.70, unchanged
Barley Mar 13 $241.50, unchanged
Barley May 13 $242.50, unchanged
Barley Jul 13 $243.00, unchanged
Barley Oct 13 $243.00, unchanged
Chicago (per bushel)
Soybeans (P) Mar 13 $14.4775, up 6.75 cents +0.47%
Soybeans (P) May 13 $14.335, up 7.5 +0.53%
Soybeans (P) Jul 13 $14.2275, up 5.0 +0.35%
Soybeans (P) Aug 13 $13.9575, up 4.75 +0.34%
Soybeans (P) Sep 13 $13.4725, up 4.75 +0.35%
Soybeans (P) Nov 13 $13.10, up 7.0 +0.54%
Corn (P) Mar 13 $7.2925, up 8.5 +1.18%
Corn (P) May 13 $7.2925, up 7.75 +1.07%
Corn (P) Jul 13 $7.205, up 7.75 +1.09%
Corn (P) Sep 13 $6.135, up 6.25 +1.03%
Corn (P) Dec 13 $5.90, up 5.75 +0.98%
Oats (P) Mar 13 $3.6125, down 1.75 -0.48%
Oats (P) May 13 $3.69, down 1.0 -0.27%
Oats (P) Jul 13 $3.735, down 1.5 -0.40%
Oats (P) Sep 13 $3.7325, down 1.0 -0.27%
Oats (P) Dec 13 $3.70-0, up 0.25 +0.07%
Minneapolis (per bushel)
Spring Wheat Mar 13 $8.665, up 1.5 +0.17%
Spring Wheat May 13 $8.7875, up 2.0 +0.23%
Spring Wheat Jul 13 $8.87, up 0.5 +0.06%
Spring Wheat Sep 13 $8.8575, up 0.25 +0.03%
The Bank of Canada noon rate for the loonie was 99.31 cents U.S., up slightly from 99.23 cents on Friday.
The U.S. dollar was $1.0069 Cdn.
Nearby crude oil in New York rose 56 cents to $96.44 per barrel.
Better than expected U.S. capital goods orders in December, a closely watched proxy for investment plans, rasied optimism that the recovery is gaining momentum.
However, most U.S. stock markets, already near all time highs, did not rally. Disappointing results at Caterpillar weighed on the Dow.
The Toronto Stock Exchange’s S&P/TSX composite index finished 0.72 of a point lower, to end at 12,815.91.
The Dow Jones industrial average was down 14.05 points, or 0.10 percent, at 13,881.93.
The Standard & Poor’s 500 Index fell 2.78 points, or 0.18 percent, to close at 1,500.18.
The Nasdaq Composite Index rose 4.59 points, or 0.15 percent, finishing at 3,154.30.
Investors poured $55 billion in new cash into stock mutual funds and exchange-traded funds in January, the biggest monthly inflow on record, research provider TrimTabs Investment Research said.
