Crop futures, including canola closed mostly lower on Wednesday on profit taking after the minor rally sparked by last week’s USDA report.
January canola broke through the $500 mark yesterday but was unable to hang on and lost a little more ground today as the Canadian dollar rose and U.S. soybean futures fell.
January canola closed at $494.80, down $3.60.
The huge Canadian harvest has created demand for rail cars that can’t be met, but CP Rail’s chief operating officer said today that in September and October the company moved a record amount of grain, 20 percent more than previous highs.
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U.S. grains: Corn futures edge up, soybeans sag on improving US crop ratings
Chicago Board of Trade corn futures extended slight gains on Tuesday as short covering and bargain buying continued to support a rebound from contract lows reached during the previous session.
Soybeans were down on profit taking after hitting a six-week high on Tuesday. Yesterday’s rally was sparked by strong demand from China and rising vegetable oil values.
Vegetable oils are supported by talk that the typhoon in the Philippines damaged its coconut oil industry, creating an opportunity to sell more palm or soybean oil. Palm oil is also supported by thoughts that more will be used in Indonesia to make biodiesel. Indonesia’s biodiesel consumption may more than double to six million tons in 2014, partly the result of an increase in the blending rate to 10 percent from 7.5 percent.
The impact from the proposal to ban transfats in the United States is not clear. It might create additional opportunities for Canadian high oleic canola, which is stable at high cooking temperatures without the need for hydrogenation, the process that causes transfats to be created.
High oleic soybeans are appearing, but have some regulatory hurdles yet to clear, such as import approval from the European Union and China.
Rallies in canola will be difficult to sustain given the record large Canadian crop and expectations of a record large soybean crop in South America that will be harvested in the new year.
Corn edged lower on worries that demand from the ethanol industry could be hurt.
The U.S. Environmental Protection Administration has proposed lowering the ethanol blending mandate for next year that could trim the amount of corn used for the fuel, causing year end corn stocks to rise. The EPA is expected to rule on the ethanol mandate by the end of the month.
The drop in corn also weighed down wheat futures.
China said it expects to import eight million tonnes of wheat this crop year, up from 7.5 million in its last forecast.
CBH Group pegged Australia’s wheat crop at 26 million tonnes, up from 25.9 million in its last forecast. Last year Australia’s wheat crop was 22.1 million tonnes.
Russia’s agriculture minister said he hopes the country can produce as much wheat as it did last year, despite a decline of about 2.4 million fall seeded acres. Excess rain early in the fall seeding season reduced potential acreage but a warm October prevented disaster and the crop that is seeded is in good shape. The minister hopes that the harvest next year will reach 90 million tonnes, including 50 million tonnes of wheat. That would be about equal to this year’s harvest.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2013 487.30 -3.50 -0.71%
Canola Jan 2014 494.80 -3.60 -0.72%
Canola Mar 2014 502.90 -3.10 -0.61%
Canola May 2014 510.40 -2.50 -0.49%
Canola Jul 2014 516.20 -2.00 -0.39%
Milling Wheat Dec 2013 217.00 -1.00 -0.46%
Milling Wheat Mar 2014 228.00 -1.00 -0.44%
Milling Wheat May 2014 236.00 -1.00 -0.42%
Durum Wheat Dec 2013 247.00 unch 0.00%
Durum Wheat Mar 2014 253.00 unch 0.00%
Durum Wheat May 2014 257.00 unch 0.00%
Barley Dec 2013 152.00 unch 0.00%
Barley Mar 2014 154.00 unch 0.00%
Barley May 2014 155.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Nov 2013 1319.75 +0.5 +0.04%
Soybeans Jan 2014 1315 +0.5 +0.04%
Soybeans Mar 2014 1298.25 +1.75 +0.13%
Soybeans May 2014 1280.5 +3.5 +0.27%
Soybeans Jul 2014 1276 +4.5 +0.35%
Soybeans Aug 2014 1256.5 +4.75 +0.38%
Soybean Meal Dec 2013 423.3 -4.4 -1.03%
Soybean Meal Jan 2014 418.1 -3.3 -0.78%
Soybean Meal Mar 2014 408.7 -0.9 -0.22%
Soybean Oil Dec 2013 40.96 +0.21 +0.52%
Soybean Oil Jan 2014 41.25 +0.2 +0.49%
Soybean Oil Mar 2014 41.63 +0.18 +0.43%
Corn Dec 2013 429.75 -2.5 -0.58%
Corn Mar 2014 440.25 -3.75 -0.84%
Corn May 2014 448.75 -4.25 -0.94%
Corn Jul 2014 456 -3.75 -0.82%
Corn Sep 2014 461.5 -3.75 -0.81%
Oats Dec 2013 336.25 -0.25 -0.07%
Oats Mar 2014 318.75 -0.5 -0.16%
Oats May 2014 310.25 -1.5 -0.48%
Oats Jul 2014 309 -1.75 -0.56%
Oats Sep 2014 309 -1.75 -0.56%
Wheat Dec 2013 645.5 +0.25 +0.04%
Wheat Mar 2014 655.5 -0.25 -0.04%
Wheat May 2014 660 -1 -0.15%
Wheat Jul 2014 661 -0.5 -0.08%
Wheat Sep 2014 669.75 -1 -0.15%
Minneapolis
Spring Wheat Dec 2013 699.5 -1.75 -0.25%
Spring Wheat Mar 2014 710.5 -2 -0.28%
Spring Wheat May 2014 718 -1.5 -0.21%
Spring Wheat Jul 2014 724 -2.5 -0.34%
Spring Wheat Sep 2014 727.75 -2.5 -0.34%
Kansas City
KCBT Red Wheat Dec 2013 702 -1.25 -0.18%
KCBT Red Wheat Mar 2014 702.75 -1.25 -0.18%
KCBT Red Wheat May 2014 702 -1.25 -0.18%
KCBT Red Wheat Jul 2014 695.5 -2.5 -0.36%
KCBT Red Wheat Sep 2014 704.5 -2.5 -0.35%
Light crude oil nearby futures in New York rose 84 cents at $93.88 US per barrel.
The Canadian dollar at noon was 95.53 cents US, up from 95.22 cents the previous trading day. The U.S. dollar at noon was $1.0468 Cdn.
U.S. stocks were higher in afternoon trade. Department store Macy’s reported stronger than expected quarterly earnings. Near the end of trade, the Dow was up by about 0.45 percent, the S&P 500 was up about 0.77 percent and the Nasdaq was up just over one percent.
Gains in energy stocks, supported by a bounce back in the crude oil price today, lifted the TSX composite to close at about 13,370.66, up about 44.62 points or 0.33 percent.
