Canola futures dip on rallying loonie

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Published: January 21, 2016

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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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%

 

 

 

About the author

D'Arce McMillan

Markets editor, Saskatoon newsroom

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