ICE Canada canola futures rose on Tuesday for just the second time in 10 sessions, on bargain-buying and a slowdown in technical selling.
Higher Chicago soyoil prices added strength to canola. *
January canola gained $2.60 to $493.80 per tonne.
Most-active March canola rose $2.40 to $501.10.
U.S. soybean futures fell for the ninth time in 10 sessions on technical selling and forecasts for crop-boosting rains in South America.
Corn firmed on short-covering after touching contract lows, but prices remain capped by abundant supplies.
Wheat futures ended mostly lower, with only hard red winter wheat contracts posting small gains on worries about potentially crop damaging weather in the Plains.
Trading was light as investors moved to the sidelines ahead of the year-end holidays.
Grain markets will close early on Friday and remain closed through Monday for the Christmas holiday.
Chart-based selling added pressure to a soybean market already slumping from forecasts for beneficial rains in Brazil and Argentina, both large soy producers.
“A lot of the weakness has been because of rain in Argentina, and there is more rain in the forecast this week. But we’re really doing some major damage to the charts and that is leading to some technical selling,” said Brian Hoops, president of Midwest Market Solutions.
Soybean futures prices climbed above the November high early this month but have since fallen and breached the November low. The bearish technical indicator, known as an outside monthly reversal, is causing traders to square positions or limit long holdings in the market, Hoops said.
Dry conditions and a lack of snow cover in the U.S. Plains wheat belt have put recently planted hard red winter wheat at risk of damage from cold weather, which is expected to strike the region later this week.
Recent price declines in wheat have attracted fresh export interest in U.S. shipments.
U.S. wheat was the cheapest origin grain offered in an Iraqi tender for hard milling wheat.
“We’re starting to see U.S. values become more competitive in the world markets,” said Brian Basting, analyst with Advance Trading.
“But having said that, we’re not the only shop in town for wheat, with plenty of competition from the Black Sea and Europe. And they are now harvesting those crops in Argentina and Australia.”
OUTSIDE MARKETS
Light crude oil nearby futures in New York were up 30 cents at US$57.46 per barrel.
In the afternoon, the Canadian dollar was trading around US77.71 cents, down slightly from 77.73 cents the previous trading day. The U.S. dollar was C$1.2868.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Jan 18 493.80s +2.60 +0.53%
Canola Mar 18 501.10s +2.40 +0.48%
Canola May 18 509.20s +2.30 +0.45%
Canola Jul 18 513.00s +2.30 +0.45%
Canola Nov 18 500.80s +1.70 +0.34%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.
Chicago
Soybeans Jan 18 956-0s -5-4 -0.57%
Soybeans Mar 18 966-6s -5-6 -0.59%
Soybeans May 18 977-6s -5-4 -0.56%
Soybeans Jul 18 988-2s -5-2 -0.53%
Soybeans Aug 18 990-2s -5-2 -0.53%
Soybean Meal Jan 18 315.2s -3.3 -1.04%
Soybean Meal Mar 18 319.1s -3.4 -1.05%
Soybean Meal May 18 322.4s -3.3 -1.01%
Soybean Oil Jan 18 33.22s +0.20 +0.61%
Soybean Oil Mar 18 33.39s +0.21 +0.63%
Soybean Oil May 18 33.52s +0.21 +0.63%
Corn Mar 18 347-4s +0-4 +0.14%
Corn May 18 355-6s +0-4 +0.14%
Corn Jul 18 364-2s +0-4 +0.14%
Corn Sep 18 371-4s +0-4 +0.13%
Corn Dec 18 380-6s +0-6 +0.20%
Oats Mar 18 246-4s -5-0 -1.99%
Oats May 18 252-6s -5-6 -2.22%
Oats Jul 18 260-6s -5-4 -2.07%
Oats Sep 18 262-6s -5-4 -2.05%
Oats Dec 18 256-6s -5-4 -2.10%
Wheat Mar 18 419-4s -1-0 -0.24%
Wheat May 18 432-6s -0-6 -0.17%
Wheat Jul 18 446-4s -0-2 -0.06%
Wheat Sep 18 459-6s -0-4 -0.11%
Wheat Dec 18 477-4s unch unch
Minneapolis
Spring Wheat Mar 18 618-2s -1-0 -0.16%
Spring Wheat May 18 626-2s -1-0 -0.16%
Spring Wheat Jul 18 631-0s -0-6 -0.12%
Spring Wheat Sep 18 627-2s +1-0 +0.16%
Spring Wheat Dec 18 636-2s unch unch
Kansas City
Hard Red Wheat Mar 18 420-0s +0-6 +0.18%
Hard Red Wheat May 18 433-0s +1-2 +0.29%
Hard Red Wheat Jul 18 449-6s +1-4 +0.33%
Hard Red Wheat Sep 18 464-4s +1-2 +0.27%
Hard Red Wheat Dec 18 486-2s +1-0 +0.21%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Dec 17 120.000s +0.025 +0.02%
Live Cattle Feb 18 120.450s -0.150 -0.12%
Live Cattle Apr 18 121.475s -0.550 -0.45%
Feeder Cattle Jan 18 145.200s -2.450 -1.66%
Feeder Cattle Mar 18 143.300s -1.950 -1.34%
Feeder Cattle Apr 18 143.675s -1.875 -1.29%
Lean Hogs Feb 18 66.900s -0.500 -0.74%
Lean Hogs Apr 18 71.675s -0.575 -0.80%
Lean Hogs May 18 76.900s -0.550 -0.71%
