Wheat and corn posted significant losses, canola dipped and soybeans edged slightly higher following the release of the monthly U.S. Department of Agriculture supply and demand report.
Signs of the global economic revival potentially derailing generally rattled investors. They were reducing their exposure to risk investments and looking for safe havens.
Canola dropped sharply early in the morning on the belief that there is adequate oilseed supply in the world and on elevator hedge selling. It regained some territory later as soybeans rose and on thoughts that the price was getting into oversold territory. It closed only slightly lower.
USDA left the U.S. year end soybean stocks number unchanged. Analysts had expected a slight increase.
It also left the corn stock number unchanged. Analysts had expected a slight decrease.
The report pushed wheat down. U.S. wheat stocks were forecast at 843 million bu., up three percent from the previous month and four percent higher than average analyst forecasts.
USDA put global wheat ending stocks at 181.9 million tonnes, up 2.3 percent from last month’s estimate and 2.4 percent above trade expectations.
Equity markets were rattled by several events, including weak weekly U.S. job report, a surprise China monthly trade deficit, and unrest in Saudi Arabia.
Winnipeg
Canola Mar 11 $565.80 per tonne, down $1.60
Canola May 11 $569.90s down $1.60
Canola Jul 11 $577.20s down $1.30
Canola Nov 11 $551.00s down 50 cents
The previous day’s best basis was steady at $27 under the May contract according to ICE Futures Canada in Winnipeg.
The May contract 14-day Relative Strength Index was 39. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Mar 11 $194 per tonne, unchanged
The December contract and those beyond rose $5 to $200.
Chicago
Soybeans Mar 11 $13.4875 up 4.75 cents
Soybeans May 11 $13.555 up 6.5 cents
Soybeans Nov 11 $13.21 up one cent
Corn Mar 11 $6.7625 down 18.75 cents
Corn May 11 $6.8275 down 18.25 cents
Oats Mar 11 $3.51 down 11 cents
Oats May 11 $3.56 down 11 cents
Minneapolis
Spring Wheat Mar 11 $8.7625 down 15.75 cents
Spring Wheat May 11 $8.7775 down 26 cents
Spring Wheat Dec 11 $8.9525 down 19.5 cents
Light crude oil at New York fell $1.68 per barrel to $102.70 for the nearby contract.
The Canadian dollar at noon was $1.0276 US, down from $1.0324 the previous trading day. The U.S. dollar at noon was 97.31 cents Cdn.
The Toronto Stock Exchange composite index fell 246.13 points to 13,638.58.
The Standard & Poor’s 500 Index fell 21.91 points to 1,295.11.
