Canola futures dipped slightly on weaker soy oil and a stronger loonie on Wednesday, but stayed in the narrow trading range that has been in place for about two weeks.
An uptick in producer deliveries weighed on the market but there was some support from delays and quality downgrades in the tail end of the harvest.
U.S. grain futures retreated from their highest prices in more than two months on Wednesday under pressure from advancing U.S. harvests and profit-taking ahead of key USDA crop reports on Friday, Reuters reported.
The USDA will probably cut its projections for the country’s average corn yield and for the number of acres of corn and soybeans that will be harvested, according to a Reuters poll of analysts.
However, “the fact remains that global grain supplies are large and do not look to be reduced drastically any time soon,” said Kayla Burkhart, broker for CHS SunPrairie in North Dakota.
“There are some concerns that U.S. production could not be as high as what the USDA has forecast but overall yields have been pleasantly surprising” for corn, she added.
Profit-taking weighed on the wheat market, which has recently been supported by concerns about dry weather in the Black Sea region, a major wheat exporter.
But soybeans bucked the weaker trend and advanced for the third consecutive day. November soybeans gained 0.4 percent to US$8.91 ¾.
The USDA is expected to raise its estimate for the average soybean yield from September, with big harvests being reported in states including Iowa and Minnesota.
Traders in a Reuters poll, think USDA will reduce its estimate for U.S. soybean ending stocks to 414 million bushels from 450 million.
Stocks probably need to drop below 400 million to extend the rally in soybeans, traders said, noting that inventories above that level are considered to be comfortable.
“Soybeans being up right now really surprises me,” said Karl Setzer, risk management team leader at MaxYield Cooperative in Iowa. “Look at the yields.”
Soyoil weakened as investors tookg profits from soyoil/soymeal spreads they had built up in the past week as strength in palm oil markets led soyoil higher.
Falling oil prices added pressure on agricultural markets after gains in energy helped to lift grains earlier this week, traders said.
Light crude oil nearby futures in New York were down 72 cents to US$47.81 per barrel.
The Canadian dollar at noon was US76.71 cents, up from 76.59 cents the previous trading day. The U.S. dollar at noon was C$1.3036.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 221.09 points, or 1.62 percent, at 13,868.35, for its fourth straight gain and highest close since mid-August.
The Dow Jones industrial average rose 0.73 percent to end at 16,912.29.
The S&P 500 ended 0.8 percent higher 1,995.83 .
The Nasdaq Composite added 0.9 percent to 4,791.15.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2015 474.50 -2.60 -0.54%
Canola Jan 2016 479.40 -2.50 -0.52%
Canola Mar 2016 481.70 -2.40 -0.50%
Canola May 2016 481.70 -2.30 -0.48%
Canola Jul 2016 480.20 -2.40 -0.50%
Milling Wheat Oct 2015 236.00 -7.00 -2.88%
Milling Wheat Mar 2016 244.00 -8.00 -3.17%
Durum Wheat Oct 2015 335.00 -10.00 -2.90%
Durum Wheat Dec 2015 335.00 -10.00 -2.90%
Durum Wheat Mar 2016 340.00 -10.00 -2.86%
Barley Oct 2015 190.00 unch 0.00%
Barley Dec 2015 185.00 unch 0.00%
Barley Mar 2016 187.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Nov 2015 891 +3 +0.34%
Soybeans Jan 2016 895 +3 +0.34%
Soybeans Mar 2016 898.75 +3.5 +0.39%
Soybeans May 2016 903 +3.75 +0.42%
Soybeans Jul 2016 908.75 +4.25 +0.47%
Soybeans Aug 2016 908.25 +4 +0.44%
Soybean Meal Oct 2015 305.2 +3.4 +1.13%
Soybean Meal Dec 2015 306.5 +2.9 +0.96%
Soybean Meal Jan 2016 305.7 +3.2 +1.06%
Soybean Oil Oct 2015 28.42 -0.09 -0.32%
Soybean Oil Dec 2015 28.62 -0.09 -0.31%
Soybean Oil Jan 2016 28.9 -0.08 -0.28%
Corn Dec 2015 395.75 -2.5 -0.63%
Corn Mar 2016 406.25 -2.25 -0.55%
Corn May 2016 412.5 -2.25 -0.54%
Corn Jul 2016 417.25 -2.25 -0.54%
Corn Sep 2016 410.75 -1.75 -0.42%
Oats Dec 2015 219.25 +0.25 +0.11%
Oats Mar 2016 220.5 -3 -1.34%
Oats Jul 2016 226.5 -5.75 -2.48%
Oats Sep 2016 228.75 -5.75 -2.45%
Wheat Dec 2015 516.75 -9.5 -1.81%
Wheat Mar 2016 523.75 -9.25 -1.74%
Wheat May 2016 528.5 -9.25 -1.72%
Wheat Jul 2016 531.75 -8.75 -1.62%
Wheat Sep 2016 540.25 -8.25 -1.50%
Minneapolis
Spring Wheat Dec 2015 532.75 -7.5 -1.39%
Spring Wheat Mar 2016 544.5 -8 -1.45%
Spring Wheat May 2016 553.5 -7.75 -1.38%
Spring Wheat Jul 2016 563 -8 -1.40%
Spring Wheat Sep 2016 573.75 -8.75 -1.50%
Kansas City
Hard Red Wheat Dec 2015 508 -7.75 -1.50%
Hard Red Wheat Mar 2016 522.25 -7.5 -1.42%
Hard Red Wheat May 2016 532.25 -7.5 -1.39%
Hard Red Wheat Jul 2016 542.75 -7.25 -1.32%
Hard Red Wheat Sep 2016 556 -7.5 -1.33%
