March canola closed down Thursday along with soybeans, pressured lower by Chinese buyers cancelling contracts on 315,000 tonnes of U.S. soybeans.
Canola was also pressured by the strong loonie that today added slightly to the previous day’s near one-cent rally.
The U.S. dollar rally against other currencies also put downward pressure on all U.S. grain futures.
Chicago corn and wheat were pressured down by falling soybeans but Minneapolis spring wheat edged higher.
It was generally a down day on markets as traders took profits on yesterday’s gains that were triggered by the last minute legislation that addressed the fiscal cliff problem.
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The biggest grain market news of the day was China canceling 315,000 tonnes of soybeans purchased from the U.S. It appears Chinese buyers are betting that South America will produce a bumper harvest and that soybean prices will be cheaper in the future.
The USDA agricultural attaché in Brazil last week increased his outlook for that country’s soybean crop by one million tonnes to a record 83 million, above USDA’s official forecast of 81 million. It was dry in central Brazil in December but rain is falling this week.
There was good news on the world economy.
U.S. payroll processor Automatic Data Processing Inc. said the number of private sector jobs increased more than expected in December.
China on Wednesday reported its manufacturing purchasing managers’ index held steady in December at 50.6, matching November’s seven-month high. This adds weight to the idea that China’s economy is reviving.
Winnipeg (per tonne)
Canola Jan 13 $604.30, up $1.10 +0.18%
Canola Mar 13 $585.50, down $1.90 -0.32%
Canola May 13 $578.70, down $2.30 -0.40%
Canola Jul 13 $574.90, down $3.00 -0.52%
Milling Wheat Mar 13 $290.50, unchanged
Milling Wheat May 13 $293.50, unchanged
Milling Wheat Jul 13 $295.50, unchanged
Durum Wheat Mar 13 $312.40, unchanged
Durum Wheat May 13 $316.40, unchanged
Durum Wheat Jul 13 $319.40, unchanged
Barley Mar 13 $247.00, unchanged
Barley May 13 $248.00, unchanged
Barley Jul 13 $248.50, unchanged
Chicago (per bushel)
Soybeans (P) Jan 13 $14.03, down 2.5 cents -0.18%
Soybeans (P) Mar 13 $13.865, down 5.75 -0.41%
Soybeans (P) May 13 $13.7825, down 6.0 -0.43%
Soybeans (P) Jul 13 $13.765, down 5.5 -0.40%
Corn (P) Mar 13 $6.8925, down 1.5 -0.22%
Corn (P) May 13 $6.91, down 2.5 -0.36%
Corn (P) Jul 13 $686-4, down 4.25 -0.62%
Oats (P) Mar 13 $3.3775, up 2.25 +0.67%
Oats (P) May 13 $3.45, up 2.25 +0.66%
Oats (P) Jul 13 $3.4975, up 2.5 +0.72%
Minneapolis (per bushel)
Spring Wheat Mar 13 $8.465, up 5.0 +0.59%
Spring Wheat May 13 $8.575, up 5.75 +0.68%
Spring Wheat Jul 13 $8.6675, up 5.25 +0.61%
Spring Wheat Sep 13 $8.6525, up 3.0 +0.35%
The Canadian dollar edged higher climbing to $1.0149 US, up from $1.0143 the day before.
The U.S. buck was 98.53 cents Cdn.
Light crude oil in New York fell 20 cents to $92.92 per barrel.
In early tallies:
The Toronto Stock Exchange’s S&P/TSX composite index fell 70.33 points, or 0.56 percent, to 12,470.44.
The Dow Jones industrial average fell 21.35 points, or 0.16 percent, to 13,391.20.
The S&P 500 slipped 3.09 points, or 0.21 percent, to 1,459.33.
The Nasdaq Composite fell 11.70 points, or 0.38 percent, to 3,100.57.
