Canola futures dip on rallying loonie

Canola futures ran into headwinds from a rising loonie on Thursday, as the Canuck buck rallied about 1.5 cents back to US70 cents the day after the Bank of Canadian did not lower interest rates.

There was modest support from rising soybeans and soy oil.

March canola closed at $483, down $1.80 or 0.37 percent.

Corn futures rose early but then closed a little lower on a pick up in farmer selling and wheat rose on short covering.

Global markets generally recovered a little equilibrium after Wednesday’s sharp sell off in crude oil and stocks.

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Australian farmers are forecast to grow slightly more canola and barley this year, while wheat production may dip, according to the latest estimates from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

Crude oil rallied today, posting is strongest one-day gain this year. The weekly U.S. oil stocks report showed inventories climbed again but not as much as the worst predictions.

Investors also generally reacted positively when the European central bank president Mario Draghi said it would be necessary to review its monetary policy when it meets in March, raising hopes that it might provide more stimulus.

Dealers told Reuters the soybean market was underpinned by demand ahead of next month’s Spring Festival, or Chinese Lunar New Year, celebrations.

“For soybeans, China’s crush margins have improved which is boosting demand as people buy for the spring festival. Chinese customers are buying U.S. soybeans,” Kaname Gokon from brokerage Okato Shoji in Tokyo told Reuters.

Argentina’s government forecaster raised its outlook for this crop year’s corn seeded area to 14 million acres from 13.3 million.

It also raised slightly the estimate of the harvested wheat crop to 11 million tonnes, from 10.9 million.

The International Grains Council has an early forecast for 2016-17 wheat production, pegging it at 706 million tonnes, down three percent on reduced acres and average yields.

But it sees consumption slipping on reduced feed demand mean that 2016-17 year end stocks would contract only modestly.

Light crude oil nearby futures in New York were up $1.18 to US$29.53 per barrel.

The Canadian dollar at noon was US70.21 cents, up from 68.54 cents the previous trading day. The U.S. dollar at noon was C$1.4243.

The Toronto Stock Exchange’s S&P/TSX composite index unofficially closed up 192.75 points, or 1.63 percent, at 12,035.86.

The Dow Jones industrial average rose 115.12 points, or 0.73 percent, to 15,881.86, the S&P 500 gained 9.6 points, or 0.52 percent, to 1,868.93 and the Nasdaq Composite added 0.37 points, or 0.01 percent, to 4,472.06.

Winnipeg ICE Futures Canada dollars per tonne

Canola Mar 2016 483.00 -1.80 -0.37%

Canola May 2016 491.20 -1.80 -0.37%

Canola Jul 2016 495.50 -1.50 -0.30%

Canola Nov 2016 495.10 -1.40 -0.28%

Canola Jan 2017 497.70 -0.90 -0.18%

Milling Wheat Mar 2016 246.00 +2.00 +0.82%

Milling Wheat May 2016 248.00 +2.00 +0.81%

Milling Wheat Jul 2016 252.00 +2.00 +0.80%

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 190.00 +5.00 +2.70%

Barley May 2016 194.00 +4.00 +2.11%

Barley Jul 2016 196.00 +4.00 +2.08%

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

Chicago

Soybeans Mar 2016 878.5 +4.5 +0.51%

Soybeans May 2016 879 +4.25 +0.49%

Soybeans Jul 2016 884.25 +4.25 +0.48%

Soybeans Aug 2016 885.75 +4.25 +0.48%

Soybeans Sep 2016 885.25 +4.75 +0.54%

Soybeans Nov 2016 887.25 +5 +0.57%

Soybean Meal Mar 2016 272.2 +2.4 +0.89%

Soybean Meal May 2016 274.2 +1.9 +0.70%

Soybean Meal Jul 2016 276.6 +1.4 +0.51%

Soybean Oil Mar 2016 29.94 +0.13 +0.44%

Soybean Oil May 2016 30.15 +0.13 +0.43%

Soybean Oil Jul 2016 30.38 +0.12 +0.40%

Corn Mar 2016 367 -1.75 -0.47%

Corn May 2016 371.75 -1.5 -0.40%

Corn Jul 2016 376.75 -1.75 -0.46%

Corn Sep 2016 381.25 -1.75 -0.46%

Corn Dec 2016 389.25 -1.25 -0.32%

Oats Mar 2016 203.75 -0.75 -0.37%

Oats May 2016 208.75 +1.5 +0.72%

Oats Jul 2016 214.5 +1 +0.47%

Oats Sep 2016 220.5 +1 +0.46%

Oats Dec 2016 219.5 +1 +0.46%

Wheat Mar 2016 475 +3.5 +0.74%

Wheat May 2016 479.75 +4 +0.84%

Wheat Jul 2016 485 +3.75 +0.78%

Wheat Sep 2016 493.25 +3.5 +0.71%

Wheat Dec 2016 507 +3.5 +0.70%

Minneapolis

Spring Wheat Mar 2016 500.25 +5.5 +1.11%

Spring Wheat May 2016 505.5 +5.75 +1.15%

Spring Wheat Jul 2016 511.5 +5.75 +1.14%

Spring Wheat Sep 2016 521.25 +5.75 +1.12%

Spring Wheat Dec 2016 536.5 +5.75 +1.08%

Kansas City

Hard Red Wheat Mar 2016 471.5 +4.25 +0.91%

Hard Red Wheat May 2016 481.75 +4.25 +0.89%

Hard Red Wheat Jul 2016 491.25 +4 +0.82%

Hard Red Wheat Sep 2016 504.5 +4 +0.80%

Hard Red Wheat Dec 2016 523.5 +4 +0.77%

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