Canola futures dropped about one percent as the loonie rose on Tuesday and U.S. crop markets digested a USDA monthly supply and demand report that offered no strong surprises.
The other news of the day focused on excess rain in Argentina as farmers there try to harvest their crops.
Reuters reported local crop watchers as saying rain could have cut the soybean harvest by five percent and damage could mount if the rain continues into next week, as forecasts indicate.
However, before this rain, forecasts of Argentina’s soy crop were creeping higher.
Soy oil closed lower, weighing down canola futures, which also suffered as the loonie climbed above US78 cents on rallying crude oil futures.
Today’s USDA forecast of domestic year end soybean stocks was smaller than the trade expected, its wheat stock forecast was as expected and corn was a little higher.
But looking at global year end stocks, the wheat, corn and soybean numbers were all a little higher than the average of analysts’ expectations.
However, the adjustments were not enough to change the market mindset.
A weaker U.S. dollar added support to prices on American exchanges.
Corn rallied more than 1.5 percent.
Chicago and Minneapolis wheat climbed about one percent and Kansas about .7 percent, winning back some of the ground lost on Monday when forecasts showed heavy rain in the U.S. central and southern Plains developing on the weekend.
The region was dry and this week for the first time the weekly crop condition report showed deterioration of the crop.
But the strong rain later this week, if it materializes, should halt the decline.
The broad weather system is also expected to deliver substantial rain to southwestern Manitoba and southeastern Saskatchewan.
Light crude oil nearby futures in New York were up $1.81 to US$42.17 per barrel. Russia and Saudi Arabia said they would freeze production at current levels ahead of a meeting of producers this weekend.
The Canadian dollar at noon was US78.13 cents, up from 77.44 cents the previous trading day. The U.S. dollar at noon was C$1.2799.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 158.66 points, or 1.18 percent, at 13,581.42 supported by rising crude oil.
The Dow Jones industrial average rose 164.84 points, or 0.94 percent, to 17,721.25, the S&P 500 gained 19.73 points, or 0.97 percent, to 2,061.72 and the Nasdaq Composite added 38.69 points, or 0.8 percent, to 4,872.09.
Winnipeg ICE Futures Canada dollars per tonne
Canola May 2016 473.90 -5.70 -1.19%
Canola Jul 2016 479.50 -5.80 -1.20%
Canola Nov 2016 478.40 -4.90 -1.01%
Canola Jan 2017 483.20 -5.50 -1.13%
Canola Mar 2017 485.00 -5.40 -1.10%
Milling Wheat May 2016 235.00 unch 0.00%
Milling Wheat Jul 2016 234.00 -1.00 -0.43%
Milling Wheat Oct 2016 231.00 -2.00 -0.86%
Durum Wheat May 2016 298.00 -3.00 -1.00%
Durum Wheat Jul 2016 293.00 -2.00 -0.68%
Durum Wheat Oct 2016 282.00 unch 0.00%
Barley May 2016 172.00 unch 0.00%
Barley Oct 2016 174.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans May 2016 936.25 +8 +0.86%
Soybeans Jul 2016 944.75 +8 +0.85%
Soybeans Aug 2016 946.75 +7.75 +0.83%
Soybeans Sep 2016 945.75 +7.5 +0.80%
Soybeans Nov 2016 947.75 +7 +0.74%
Soybeans Jan 2017 951.75 +7 +0.74%
Soybean Meal May 2016 285.1 +5 +1.79%
Soybean Meal Jul 2016 287.6 +5.1 +1.81%
Soybean Meal Aug 2016 288.8 +5.1 +1.80%
Soybean Oil May 2016 33.69 -0.21 -0.62%
Soybean Oil Jul 2016 33.96 -0.22 -0.64%
Soybean Oil Aug 2016 34.06 -0.22 -0.64%
Corn May 2016 362.75 +6 +1.68%
Corn Jul 2016 365.5 +5.75 +1.60%
Corn Sep 2016 368 +5.5 +1.52%
Corn Dec 2016 374.25 +5.5 +1.49%
Corn Mar 2017 384 +5.5 +1.45%
Oats May 2016 187.5 +2.75 +1.49%
Oats Jul 2016 195.75 +2 +1.03%
Oats Sep 2016 204 +1.75 +0.87%
Oats Dec 2016 212.75 +1.75 +0.83%
Oats Mar 2017 221.5 +3.25 +1.49%
Wheat May 2016 452.5 +5.25 +1.17%
Wheat Jul 2016 458.75 +4.5 +0.99%
Wheat Sep 2016 468.25 +4 +0.86%
Wheat Dec 2016 483.25 +3.75 +0.78%
Wheat Mar 2017 498.75 +3.5 +0.71%
Minneapolis
Spring Wheat May 2016 516.5 +6.25 +1.22%
Spring Wheat Jul 2016 523.5 +5.5 +1.06%
Spring Wheat Sep 2016 532.25 +4.5 +0.85%
Spring Wheat Dec 2016 546 +4.75 +0.88%
Spring Wheat Mar 2017 559 +4.75 +0.86%
Kansas City
Hard Red Wheat May 2016 447.25 +3.5 +0.79%
Hard Red Wheat Sep 2016 471.75 +3 +0.64%
Hard Red Wheat Dec 2016 492.25 +2.75 +0.56%
Hard Red Wheat Mar 2017 506 +2.75 +0.55%
