Canola edges higher, corn and wheat fall

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Published: January 8, 2015

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Canola futures edged higher for the fifth day on speculator buying and support from rising vegetable oil prices.

Farmer selling limited the gains, but not a lot of product is being delivered as grain companies have widened their basis so the stronger futures is not reflected in the cash price.

Soybeans, wheat and corn futures were lower. The strong U.S. dollar could be hurting American exports.

Canola futures were supported by rising soy oil, which climbed on good weekly U.S. exports and ideas that falling soy meal values and reduced meal demand will cause crushers to process fewer soybeans and in turn create less soy oil.

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Photo: Geralyn Wichers

U.S. livestock: Cattle hit fresh highs, hogs inch upward

Chicago cattle futures hit fresh highs on Monday while hogs made small gains.

Weekly soyoil sales totaled 30,200 tonnes, above a range of forecasts for 5,000 to 20,000 tonnes.

Veg oils also got a boost from rising Malaysian palm oil values as a forecast of another heavy monsoon rain for the end of this week could cause flooding that again disrupts transportation.

Soybean futures fell on pressure from lower soymeal futures as well as profit taking following a three-day rally.

U.S. soybean weekly export sales were larger than expected, however the trade focused on slower than expected weekly meal export sales and weak domestic end user demand.

Soymeal export sales were 37,300 tonnes, below trade expectations for 50,000 to 200,000 tonnes.

Soy meal futures fell two percent.

Chicago wheat fell two percent, mostly on poor weekly export sales, that at 151,000 tonnes were below the expectation for 200,000 to 400,000 tonnes.

Also the hype about cold weather hurting winter wheat seedlings is starting to fade.

Egypt’s GASC bought 180,000 tonnes of French wheat in its latest tender, indicating that U.S. wheat prices are uncompetitive on the world market.

Corn futures fell for the seventh time in eight session, weighed down by technical factors and weaker than expected weekly export sales.

Stock markets rose on ideas that the recent sharp declines caused by the falling price of crude oil were overdone. There are signs the U.S. economy is getting stronger and that the European central bank will take more aggressive measures to kick start its moribund economy.

Also crude oil rose for the second straight day.

Light crude oil nearby futures in New York rose 14 cents to US$48.79 per barrel.

The Canadian dollar at noon was US84.66 cents, up from 84.38 cents the previous trading day. The U.S. dollar at noon was C$1.1812.

The Toronto Stock Exchange’s S&P/TSX composite index closed up 172.72 points, or 1.21 percent, at 14,457.72.

The Dow Jones industrial average rose 316.28 points, or 1.8 percent, to 17,900.8.

The S&P 500 gained 36.11 points, or 1.78 percent, to 2,062.01.

The Nasdaq Composite added 85.72 points, or 1.84 percent, to 4,736.19

 

Winnipeg ICE Futures Canada dollars per tonne

Canola Jan 2015       465.70       +2.50       +0.54%

Canola Mar 2015       451.70       +2.50       +0.56%

Canola May 2015       449.60       +3.80       +0.85%

Canola Jul 2015       448.10       +4.40       +0.99%

Canola Nov 2015       437.20       +4.00       +0.92%

 

Milling Wheat Mar 2015       221.00       -3.00       -1.34%

Milling Wheat May 2015       224.00       -3.00       -1.32%

Milling Wheat Jul 2015       226.00       -3.00       -1.31%

 

Durum Wheat Mar 2015       365.00       unch       0.00%

Durum Wheat May 2015       355.00       unch       0.00%

Durum Wheat Jul 2015       345.00       unch       0.00%

 

Barley Mar 2015       177.00       unch       0.00%

Barley May 2015       179.00       unch       0.00%

Barley Jul 2015       181.00       unch       0.00%

 

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

 

Chicago

Soybeans Jan 2015       1045       -7.75       -0.74%

Soybeans Mar 2015       1048.25       -8       -0.76%

Soybeans May 2015       1053.75       -7.75       -0.73%

Soybeans Jul 2015       1058.75       -7       -0.66%

Soybeans Aug 2015       1056.25       -6.5       -0.61%

Soybeans Sep 2015       1034.75       -2.25       -0.22%

 

Soybean Meal Jan 2015       361.3       -7.2       -1.95%

Soybean Meal Mar 2015       347.2       -6.8       -1.92%

Soybean Meal May 2015       342.2       -5.8       -1.67%

 

Soybean Oil Jan 2015       33.58       +0.6       +1.82%

Soybean Oil Mar 2015       33.76       +0.6       +1.81%

Soybean Oil May 2015       33.91       +0.59       +1.77%

 

Corn Mar 2015       394.25       -2       -0.50%

Corn May 2015       402.75       -2       -0.49%

Corn Jul 2015       409.5       -2       -0.49%

Corn Sep 2015       412.25       -2.25       -0.54%

Corn Dec 2015       417.25       -3       -0.71%

 

Oats Mar 2015       302.25       +0.5       +0.17%

Oats May 2015       304.25       +0.25       +0.08%

Oats Jul 2015       307.75       unch       0.00%

Oats Sep 2015       306.25       +0.25       +0.08%

Oats Dec 2015       304.25       -0.5       -0.16%

 

Wheat Mar 2015       567       -12.5       -2.16%

Wheat May 2015       572       -12       -2.05%

Wheat Jul 2015       576.75       -11       -1.87%

Wheat Sep 2015       583.25       -11.5       -1.93%

Wheat Dec 2015       594.25       -10.75       -1.78%

 

Minneapolis

Spring Wheat Mar 2015       608.5       -7.25       -1.18%

Spring Wheat May 2015       615.25       -7       -1.12%

Spring Wheat Jul 2015       622.25       -7       -1.11%

Spring Wheat Sep 2015       628.25       -6.5       -1.02%

Spring Wheat Dec 2015       637.25       -6.75       -1.05%

 

Kansas City

Hard Red Wheat Mar 2015       607.75       -12.25       -1.98%

Hard Red Wheat May 2015       612.25       -11.25       -1.80%

Hard Red Wheat Jul 2015       615.5       -9.5       -1.52%

Hard Red Wheat Sep 2015       626       -9.25       -1.46%

Hard Red Wheat Dec 2015       640       -9       -1.39%

 

 

 

 

About the author

D'Arce McMillan

Markets editor, Saskatoon newsroom

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