The metastasizing Eurozone debt issue knocked down virtually all stock, currency and equity markets, except for the U.S. dollar.
That meant canola had a relatively good day compared to most other crop commodities, which took a moderate pounding.
Canola futures on the Winnipeg ICE Canada Futures exchange fell only slightly. January canola fell 80 cents per tonne to $524.50 while the March was unchanged.
“It was all about the dollar,” said Errol Anderson of Pro Market Communications, explaining canola’s relative strength compared to other crops.
Traders said continued healthy commercial buying of canola also kept the market from sliding, even if the downdraft from outside markets was powerful.
Chicago soybean futures fell almost 20 cents per bushel Wednesday, Chicago corn fell six cents and Minneapolis spring wheat fell four cents for the March contract. Chicago wheat fell about 20 cents per bushel and Kansas city wheat fell 25 cents.
Oats fell by three cents.
US Department of Agriculture supply and demand reports released Wednesday did not contain any shockers, so they became minor factors in the market. Overwhelming everything was the Eurozone debt mess, with Italy being pushed into the red zone by bond traders today.
Italian sovereign debt hit 7.25 percent in trading on Wednesday, well over the seven percent point that many analysts have said would mean Italy could no longer bear the burden of its $1.6 trillion debt.
The endless series of Eurozone problems and fixes that only temporarily alleviate the currency union’s government debt problems are grinding down the confidence of even the ever-bullish equity markets, and have driven bond markets to even more extreme levels of bearishness.
However, relatively tight levels of corn stocks and continuing demand for oilseeds and wheat have kept crop commodities at the low point of a high price range, but not in slump territory.
Winnipeg (per tonne)
Canola Nov 11 $522.50, down $0.80 (-0.15%)
Canola Jan 12 $524.50, down $0.80 (-0.15%)
Canola Mar 12 $530.90, unchanged (unch)
Canola May 12 $535.40, up $0.20 (+0.04%)
Western Barley Dec 11 $217.00, unchanged (unch)
Chicago (per bushel)
Soybeans Nov 11 $11.7575, down 19.50 cents (-1.63%)
Soybeans Jan 12 $11.8550, down 19.50 (-1.62%)
Soybeans Mar 12 $11.9550, down 19.25 (-1.58%)
Corn Dec 11 $6.5600, down 4.50 (-0.68%)
Corn Mar 12 $6.6500, down 6.00 (-0.89%)
Oats Dec 11 $3.2425, down 3.75 (-1.14%)
Oats Mar 12 $3.3000, down 3.50 (-1.05%)
Minneapolis (per bushel)
Spring Wheat Dec 11 $9.5175, up 5.50 cents (+0.58%)
Spring Wheat Mar 12 $8.7600, down 4.50 (-0.51%)
Spring Wheat May 12 $8.4850, down 8.50 (-0.99%)
The previous day’s best canola basis was $10.00 under the January contract according to ICE Futures Canada in Winnipeg.
Light crude oil nearby futures in New York rose 1.28 cents at $96.80 US per barrel.
The Canadian dollar at noon was $0.9830 US, down from $0.9862 the previous trading day. The U.S. dollar at noon was $1.0173 Cdn.
