Canola prices dropped slightly today in light of downward pressure on soybeans, thanks to favourable weather forecasts for the Brazilian crop.
March canola futures lost $7 a tonne on the day, finishing at $575.30. Meanwhile, March soybeans dropped 29.50 cents per bushel, settling at $14.31 per bushel.
Over the next couple of weeks rain is expected to fall on Brazil’s soybean fields, which are now in the flowering stage.
As a result, ABIOVE, a Brazilian vegetable oil industry association, increased its forecast for Brazilian soybean production in 2012-13 to 81.5 million tonnes, which is up slightly from an earlier forecast in November.
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Strength in soybean oil prevented canola from falling further Wednesday, likely because canola has higher oil content than beans.
March corn futures lost 17 cents on the day, settling at $7.03 cents per bu., its lowest level since late September. Corn is now down nearly $1.50 a bu. since hitting $8.49 per but in August.
Demand for corn has slowed as ethanol inventories are rising, said biofuel industry analysts, explaining why corn is trading lower recently.
March wheat futures were also down marginally, losing six cents to sit at $8.955 per bushel on the Minneapolis Grain Exchange.
The fiscal cliff talks continue to weigh on the overall market, as budget discussions stalled again Wednesday.
The Canadian dollar sat at $1.0134 US Wednesday, down slightly from $1.0148 the previous day.
Nearby crude oil in New York rose $1.58 to $89.51 per barrel.
Winnipeg (per tonne)
Canola Jan 13 $578.80, down $6.70 -1.14%
Canola Mar 13 $575.30, down $7.00 -1.20%
Canola May 13 $572.10, down $8.10 -1.40%
Canola Jul 13 $569.10, down $8.10 -1.40%
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 $248.00, unchanged
Barley May 13 $249.00, unchanged
Barley Jul 13 $249.50, unchanged
Chicago (per bushel)
Soybeans (P) Jan 13 $14.3700, down, 29.00 cents -1.98%
Soybeans (P) Mar 13 $14.3100, down, 29.50 -2.02%
Soybeans (P) May 13 $14.1950, down 25.00 -1.73%
Soybeans (P) Jul 13 $14.1400, down 18.50 -1.29%
Corn (P) Mar 13 $7.0300, down 17.00 -2.36%
Corn (P) May 13 $7.0700, down 16.75 -2.31%
Corn (P) Jul 13 $7.0575, down 16.00 -2.22%
Oats (P) Mar 13 $3.7525, down 5.25 -1.38%
Oats (P) May 13 $3.8250, down 3.75 -0.97%
Oats (P) Jul 13 $3.8375, down 3.00 -0.78%
Minneapolis (per bushel)
Spring Wheat Mar 13 $8.9550, down 6.00 cents -0.67%
Spring Wheat May 13 $9.0500, down 5.25 -0.58%
Spring Wheat Jul 13 $9.1125, down 5.00 -0.55%
Spring Wheat Sep 13 $9.0775, down 6.50 -0.71%
The previous day’s best canola basis was $13.75 over the January contract according to ICE Futures Canada in Winnipeg.
Light crude oil nearby futures in New York rose $1.58 at $89.51 US per barrel.
The Canadian dollar at noon was $1.0134 US, down from $1.0148 the previous trading day. The U.S. dollar at noon was 98.68 cents Cdn.
