Canola on Tuesday played catch up to big gains in U.S. markets Monday and today as searing heat in the corn and soybean belt continued to wilt crops and set crop futures markets ablaze.
Canadian markets were closed Monday.
July canola closed at $639.00, up $11.90, or 1.90 percent.
November closed at $601.20, up $7.50, up 1.26 percent.
Both were down from the high set earlier in the day.
More thunderstorms are sweeping across Alberta and into Saskatchewan today and the rain is not needed. However, Environment Canada is calling for a trend toward warm, sunny weather, which is what crops in much of the Prairies need.
Read Also
U.S. grains: Corn backs away from gains at close
Chicago | Reuters — U.S. corn futures climbed to a 6-1/2 week high on Friday on short covering ahead of…
USDA on Monday lowered the amount of U.S. corn in good-to-excellent condition to 48 percent, down from 56 percent a week ago.
The soybean good-to-excellent rating plunged to 45, down from 53 percent the previous week.
Today Reuters again polled analysts for their take on corn yields. Today’s poll of 13 analysts pegs production at 153.4 bushels per acre, down 3.9 bu. per acre, or 2.5 percent, from a similar poll a week ago.
Midwest weather is expected to cool next week, but the heat has already done permanent damage to corn yields.
Wheat futures rose, pulled along by corn.
The heat is starting to take a toll on U.S. spring wheat. Its good-to-excellent condition fell to 71 percent, from 77 the week before, but it is still better than last year when it was 70 percent.
Seventy three percent of the spring wheat crop in the U.S. has headed, up from the five-year average of 35 percent.
The outlook for wheat crops in western Europe has improved after June rains but dry, sunny weather is now needed to avert harvest delays, yields losses and quality problems.
• The International Grains Council lowered its global wheat production projection to 665 million tonnes, down from 671 million in May and down from last year’s 695 million. Reduced crop prospects in Black Sea region were behind the reduction.
It sees global stocks at the end of 2012-13 falling to 182 million tonnes, down from 191 million the previous month and down from last year’s 199 million.
Stocks held by major exporter are expected to get tight, falling to 58 million tonnes, the smallest since the extremely tight 31 million in 2007-08.
Winnipeg (per tonne)
Canola Jul 1 $639.00, up $11.90 +1.90%
Canola Nov 1 $601.20, up $7.50 +1.26%
Canola Mar 13 604.40, up $7.10 +1.19%
The best basis in the par region the previous trading day was $18.33 above the July contract, said ICE Futures Canada.
The 14-day relative strength index for the July contract was 61.
Western Barley Jul 1 $237.00, unchanged
Western Barley Oct 1 $217.00, unchanged
Milling Wheat Oct 1 $282.70, up $3.70 +1.33%
Milling Wheat Dec 1 $290.00, up $3.70 +1.29%
Milling Wheat Mar 13 300.00, up $4.70 +1.59%
Durum Wheat Oct 1 $275.50, unchanged
Durum Wheat Dec 1 $280.00, unchanged
Durum Wheat Mar 13 286.60, unchanged
Barley Oct 1 $201.00, unchanged
Barley Dec 1 $203.70, unchanged
Barley Mar 13 206.70, unchanged
Chicago (per bushel)
Soybeans (P) Jul 1 $15.7225, up 40.0 +2.61%
Soybeans (P) Aug 1 $15.295, up 35.25 +2.36%
Soybeans (P) Sep 1 $14.98, up 35.5 +2.43%
Soybeans (P) Nov 1 $14.7475, up 36.75 +2.56%
Corn (P) Jul 1 $7.1875, up 26.25 +3.79%
Corn (P) Sep 1 $6.74, up 21.75 +3.33%
Corn (P) Dec 1 $6.745, up 18.75 +2.86%
Oats (P) Jul 1 $3.4875, up 2.75 +0.79%
Oats (P) Sep 1 $3.51, up 3.75 +1.08%
Oats (P) Dec 1 $3.5675, up 2.75 +0.78%
Minneapolis (per bushel) SETTLEMENTS DELAYED
Spring Wheat Jul 1 $8.86, up 14.75 +1.69%
Spring Wheat Dec 1 $8.9875, up 31.0 +3.57%
Spring Wheat Mar 13 9.035, up 29.25 +3.35%
Nearby crude oil in New York soared $3.91 to $87.66 on concerns about growing tensions with Iran, which tested missiles capable of hitting Israel.
The Bank of Canada noon rate for the loonie is 98.78 cents US, up from 98.13 the previous trading day.
The U.S. dollar is $1.0123 Cdn.
Canadian stocks posted their biggest single-day gain this year, as mining and energy shares soared amid hopes that the world’s major central banks will provide stimulus to spark economies back to life.
In early tallies:
The Toronto Stock Exchange’s S&P/TSX composite index rose 252.39 points, or 2.2 percent, at 11,848.95.
The Dow Jones industrial average gained 72.43 points, or 0.56 percent, to 12,943.82.
The Standard & Poor’s 500 Index rose 8.51 points, or 0.62 percent, to 1,374.02.
The Nasdaq Composite Index added 24.85 points, or 0.84 percent, to 2,976.08.
