Canola futures dip but show stability in face of global economic worries

Canola and most other crop futures slipped Wednesday, caught up in the general market malaise.

But crop markets are hanging on relatively well considering the steep declines in other markets. For example, crude oil fell 6.6 percent today on rising stocks, increasing global production and the strong U.S. dollar.

Technical selling triggered a decline in canola when, during an early day rally, the price failed to break through Tuesday’s high of $490 a tonne.

March canola settled at $484.80, down $2.90 or 0.59 percent.

March soybeans fell about one percent with profit taking and soy oil was down 0.73 percent.

“As long as the U.S. dollar remains strong, a solid, fundamental, sustainable rally will be elusive until a crop disaster hits,” brokerage INTL FCStone said in a note to clients, Reuters reported.

Wheat futures also fell, pressured by weak overseas demand for U.S. supplies. But corn closed slightly higher, with a surprise export sale triggering a mild round of short covering after weakening during the overnight session.

The Bank of Canada today held its interest rates steady. It avoided calls to drop rates so as to stimulate the flagging resource economy.

Governor Stephen Ploz noted that the weak loonie, the slowly growing U.S. economy and promised federal government stimulus spending might help spur an economic rebound.

Bloomberg reports that Glencore now has a short list of companies that might be selected to buy a stake in its agriculture unit, which includes Viterra.

The potential buyers include the sovereign wealth funds of Qatar, Singapore and Abu Dhabi, the state-owned Saudi Agricultural and Livestock Investment Co. and the Canada pension Plan Investment Board.

Bloomberg said the information comes from two people familiar with the talks but who were not identified.

Glencore wants to pay down $12 billion of debt.

Bloomberg reported that Glencore has previously said it was simultaneously considering an initial public offering for the business. It retains that option though favors the sale of a minority stake, the sources told Bloomberg.

The falling oil price and worries about global economic growth pushed stock prices lower.

The Toronto Stock Exchange’s S&P/TSX composite index closed down 159.13 points, or 1.33 percent, at 11,843.11.

The Dow Jones industrial average fell 248.87 points, or 1.55 percent, to 15,767.15.

At one point early in the day the Dow was down 3.7 percent.

The S&P 500 lost 21.92 points, or 1.17 percent, to 1,859.41 and the Nasdaq Composite dropped 5.26 points, or 0.12 percent, to 4,471.69.

Light crude oil nearby futures in New York were down $1.91 to US$26.55 per barrel.

The Canadian dollar at noon was US68.54 cents, down from 68.90 cents the previous trading day. The U.S. dollar at noon was C$1.4589.

 

Winnipeg ICE Futures Canada dollars per tonne

Canola Mar 2016   484.80   -2.90   -0.59%

Canola May 2016   493.00   -2.90   -0.58%

Canola Jul 2016   497.00   -2.80   -0.56%

Canola Nov 2016   496.50   -1.80   -0.36%

Canola Jan 2017   498.60   -1.80   -0.36%

 

Milling Wheat Mar 2016   244.00   -1.00   -0.41%

Milling Wheat May 2016   246.00   -1.00   -0.40%

Milling Wheat Jul 2016   250.00   -1.00   -0.40%

 

Durum Wheat Mar 2016   334.00   unch   0.00%

Durum Wheat May 2016   342.00   unch   0.00%

Durum Wheat Jul 2016   342.00   unch   0.00%

 

Barley Mar 2016   185.00   unch   0.00%

Barley May 2016   190.00   unch   0.00%

Barley Jul 2016   192.00   unch   0.00%

 

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

 

Chicago

Soybeans Mar 2016   874   -9.5   -1.08%

Soybeans May 2016   874.75   -8.25   -0.93%

Soybeans Jul 2016   880   -8   -0.90%

Soybeans Aug 2016   881.5   -7.5   -0.84%

Soybeans Sep 2016   880.5   -6.75   -0.76%

Soybeans Nov 2016   882.25   -6.25   -0.70%

 

Soybean Meal Mar 2016   269.8   -1.5   -0.55%

Soybean Meal May 2016   272.3   -1.5   -0.55%

Soybean Meal Jul 2016   275.2   -1.4   -0.51%

 

Soybean Oil Mar 2016   29.81   -0.22   -0.73%

Soybean Oil May 2016   30.02   -0.22   -0.73%

Soybean Oil Jul 2016   30.26   -0.2   -0.66%

 

Corn Mar 2016   368.75   +1   +0.27%

Corn May 2016   373.25   +1.25   +0.34%

Corn Jul 2016   378.5   +1.5   +0.40%

Corn Sep 2016   383   +1.25   +0.33%

Corn Dec 2016   390.5   +1   +0.26%

 

Oats Mar 2016   204.5   -3   -1.45%

Oats May 2016   207.25   -1   -0.48%

Oats Jul 2016   213.5   -0.75   -0.35%

Oats Sep 2016   219.5   -0.25   -0.11%

Oats Dec 2016   218.5   +2.25   +1.04%

 

Wheat Mar 2016   471.5   -3   -0.63%

Wheat May 2016   475.75   -3.25   -0.68%

Wheat Jul 2016   481.25   -3.75   -0.77%

Wheat Sep 2016   489.75   -4   -0.81%

Wheat Dec 2016   503.5   -3.75   -0.74%

 

Minneapolis

Spring Wheat Mar 2016   494.75   -1.5   -0.30%

Spring Wheat May 2016   499.75   -2.5   -0.50%

Spring Wheat Jul 2016   505.75   -3   -0.59%

Spring Wheat Sep 2016   515.5   -3.25   -0.63%

Spring Wheat Dec 2016   530.75   -3.25   -0.61%

 

Kansas City

Hard Red Wheat Mar 2016   467.25   -5.5   -1.16%

Hard Red Wheat May 2016   477.5   -5.25   -1.09%

Hard Red Wheat Jul 2016   487.25   -5.25   -1.07%

Hard Red Wheat Sep 2016   500.5   -5   -0.99%

Hard Red Wheat Dec 2016   519.5   -4.5   -0.86%

 

 

 

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