Canola futures rose Tuesday, supported by rising soybeans, as markets appeared to decide that Monday’s losses were overdone, considering tight old crop supplies.
Traders in U.S. markets were bull spreading and technical short-covering ahead of Wednesday’s USDA reports. Strong demand for soy meal kept crushers on the hunt for soybeans and that helped lift July soybeans.
Western Canada is experiencing generally favourable growing conditions. Rain is expected beginning Thursday in much of Saskatchewan and Alberta and showers are expected to continue into the weekend.
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Pulse Weekly: Talk arises of India ending duty-free period
With harvest underway across the Canadian Prairies rumblings has been felt from the other side of the world, specifically in regards yellow peas. There have been recent media reports stating the Indian government is under growing domestic pressure to end its duty-free period on yellow pea imports.
Here is the U.S. weather office prediction for rainfall Wednesday through Monday.
A Reuters poll of analysts, on average, expect the United States Department of Agriculture will cut its estimate of corn plantings by nearly 1.5 million acres from its May estimate of 97.3 million.
They expect some of those acres will go into soybeans. On average, they pegged soy area at 77.79 million acres, up from USDA’s May forecast of 77.1 million.
The analysts pegged 2012-13 old-crop corn ending stocks at 759 million bushels, unchanged from the May forecast, and 2013-14 new-crop ending stocks at 1.795 billion bushels, down from the May forecast for 2.004 billion bu.
Chicago wheat futures rose on short-covering and position squaring.
Analysts polled by Reuters expect USDA to cut its new-crop ending stocks forecast for wheat and slightly raise its old-crop stocks outlook on Wednesday.
A Bloomberg survey of analysts pegged winter wheat output at 1.468 billion bushels, down from 1.49 million in the May USDA forecast. That would be down 11 percent from last year and the lowest since 2006.
Japan’s farm ministry said it wanted to buy 120,000 tonnes of feed wheat, but it excluded U.S. supplies shipped from the Pacific Northwest in its first tender since the discovery of an unapproved genetically modified wheat strain in Oregon last month, Reuters reported.
Russia’s agriculture ministry trimmed its 2013 wheat harvest forecast to a range of 50 million to 54 million tonnes from 54 million to 55 million, Reuters reported.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2013 608.60 +8.70 +1.45%
Canola Nov 2013 558.10 +9.40 +1.71%
Canola Jan 2014 560.20 +9.80 +1.78%
Canola Mar 2014 557.00 +9.40 +1.72%
Canola May 2014 552.20 +9.50 +1.75%
Milling Wheat Jul 2013 294.00 unch 0.00%
Milling Wheat Oct 2013 294.00 unch 0.00%
Milling Wheat Dec 2013 294.00 unch 0.00%
Durum Wheat Jul 2013 301.90 unch 0.00%
Durum Wheat Oct 2013 294.90 unch 0.00%
Durum Wheat Dec 2013 299.40 unch 0.00%
Barley Jul 2013 244.00 unch 0.00%
Barley Oct 2013 194.00 unch 0.00%
Barley Dec 2013 199.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jul 2013 1540.5 +28.75 +1.90%
Soybeans Aug 2013 1450.75 +15 +1.04%
Soybeans Sep 2013 1365.75 +9.25 +0.68%
Soybeans Nov 2013 1327 +8 +0.61%
Soybeans Jan 2014 1334 +8.25 +0.62%
Soybeans Mar 2014 1333.75 +10.75 +0.81%
Soybean Meal Jul 2013 463.4 +15.1 +3.37%
Soybean Meal Aug 2013 433.1 +9.6 +2.27%
Soybean Meal Sep 2013 414.6 +6.3 +1.54%
Soybean Oil Jul 2013 48.04 -0.03 -0.06%
Soybean Oil Aug 2013 47.96 -0.12 -0.25%
Soybean Oil Sep 2013 47.71 -0.24 -0.50%
Corn Jul 2013 659.5 +9.5 +1.46%
Corn Sep 2013 583.5 +6.25 +1.08%
Corn Dec 2013 550.75 +4.75 +0.87%
Corn Mar 2014 561.5 +5 +0.90%
Corn May 2014 568.75 +5 +0.89%
Oats Jul 2013 403.25 -6.75 -1.65%
Oats Sep 2013 393.75 -1.25 -0.32%
Oats Dec 2013 384 +2.5 +0.66%
Oats Mar 2014 386.5 +1.75 +0.45%
Oats May 2014 388.75 +1.75 +0.45%
Wheat Jul 2013 696.75 +7 +1.01%
Wheat Sep 2013 705 +6 +0.86%
Wheat Dec 2013 719.5 +5.75 +0.81%
Wheat Mar 2014 733.75 +5.25 +0.72%
Wheat May 2014 744 +5.25 +0.71%
Minneapolis
Spring Wheat Jul 2013 815.75 +4.25 +0.52%
Spring Wheat Sep 2013 800 +1.5 +0.19%
Spring Wheat Dec 2013 806.5 +0.25 +0.03%
Spring Wheat Mar 2014 819.75 +1.25 +0.15%
Spring Wheat May 2014 825.25 +0.25 +0.03%
Kansas City
KCBT Red Wheat Jul 2013 730 +4 +0.55%
KCBT Red Wheat Sep 2013 735.25 +2.75 +0.38%
KCBT Red Wheat Dec 2013 754 +2.75 +0.37%
KCBT Red Wheat Mar 2014 767.5 +2.75 +0.36%
KCBT Red Wheat May 2014 776 +2.75 +0.36
Light crude oil nearby futures in New York dropped 39 cents at $95.38 US per barrel.
The Canadian dollar at noon was 98.14 cents US, down from 98.16 cents the previous trading day. The U.S. dollar at noon was $1.0190 Cdn.
Stock markets were generally down after the Bank of Japan at a regular meeting today did nothing to address rising bond yields on Japanese notes that are threatening to reduce the impact of that country’s stimulus efforts.
The Toronto Stock Exchange’s S&P/TSX composite index ended the day down 159.10 points, or 1.28 percent, at 12,223.57.
The Dow Jones industrial average was down 116.26 points, or 0.76 percent, at 15,122.33.
The Standard & Poor’s 500 Index was down 16.62 points, or 1.01 percent, at 1,626.19.
The Nasdaq Composite Index was down 36.82 points, or 1.06 percent, at 3,436.95.
