November canola got some legs under it today, moving up $4.80 to $618. January and March also moved up on the ICE markets, seeing $6.10 and $6.20 increases to $621.10 and $621.90 respectively. The big gainers in canola were May and July 2013. They were up $9.60 and $10.10, closing the gaps with nearer-term markets, ending at $615.50 and $605.40.
Soybeans lead canola up, regaining the few cents that were lost in the past three days. September and November soybeans both rose 12.25 cents, keeping both well into the $16 and change range on Chicago.
Corn got its ears above $8 again, ending in Windy City trade for September at $8.10 and November at $8.0750. per bushel. While traders were waiting for next week’s USDA report to signal supplies from the droughty American corn crop, Mexico couldn’t wait and pulled the trigger on its largest ever one day buy of American corn. The railway export program will be one of the country’s largest as the southern neighbour looks to avoid the price problems they had in 2008.
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Not all corn contracts were in the black though, traders decided to trade-lightly on 2013 crop and beyond, and it was off 2.5 cents or less.
Weather forecasts by U.S. Department of Agriculture predict more hot, dry conditions for the central and southern Midwest. Soybeans are the next crop to get their yield legs cut out from under them, should the drought continue beyond the second week of August.
Western and Southern Australia are also short of water. Significant canola and wheat plantings there are showing signs of stress according to Australian Broadcasting Corporation’s Radio National’s reports.
Drought and heat continue to constrain yields in the eastern and southern former Soviet Socialist Republics, however the rumored Black Sea export ban has not come to fruition so far.
Wheat caught what corn has and moved up 20 cents and more per bushel all the way out to May 2014 on Chicago before the end of Friday’s trade.
Winnipeg (per tonne)
Canola Nov 12 $618.00, up $4.80
Canola Jan 13 $621.10, up $6.10
Canola Mar 13 $621.90, up $6.20
Canola May 13 $615.50, up $9.60
Western Barley Oct 12 $265.00, unchanged
Western Barley Dec 12 $270.00, unchanged
Milling Wheat Oct 12 $301.00, up $3.50 +1.18%
Milling Wheat Dec 12 $308.00, up $3.00 +0.98%
Milling Wheat Mar 13 $318.00, up $3.00 +0.95%
Durum Wheat Oct 12 $311.50, unchanged
Durum Wheat Dec 12 $316.00, unchanged
Durum Wheat Mar 13 $322.60, unchanged
Barley Oct 12 $264.50, unchanged
Barley Dec 12 $269.50, unchanged
Barley Mar 13 $272.50, unchanged
Chicago (per bushel)
Soybeans (P) Aug 12 $16.5625, up 3.25 cents +0.20%
Soybeans (P) Sep 12 $16.3575, up 12.25 +0.75%
Soybeans (P) Nov 12 $16.2875, up 12.25 +0.76%
Soybeans (P) Jan 13 $16.2500, up 14.75 +0.92%
Corn (P) Sep 12 $8.1000, up 16.00 +2.02%
Corn (P) Dec 12 $8.0750, up 11.75 +1.48%
Corn (P) Mar 13 $8.0875, up 11.25 +1.41%
Oats (P) Sep 12 $3.7800, up 6.25 +1.68%
Oats (P) Dec 12 $3.7800, up 5.50 +1.48%
Oats (P) Mar 13 $3.7975, up 5.75 +1.54%
Minneapolis (per bushel)
Spring Wheat Sep 12 $9.4450, up 18.00 cents +1.94%
Spring Wheat Dec 12 $9.5400, up 17.50 +1.87%
Spring Wheat Mar 13 $9.6175, up 18.00 +1.91%
Spring Wheat May 13 $9.6500, up 19.75 +2.09%
The previous day’s best canola basis was $1 under the November contract according to ICE Futures Canada in Winnipeg.
Light crude oil nearby futures in New York rose $4.27 at $91.40 US per barrel.
The Canadian dollar at noon was $1.0014 US, up from 99.38 cents the previous trading day. The U.S. dollar at noon was 99.86 cents Cdn.
