Canola futures edge higher, digests threat to Chinese demand

Canola futures recovered a little from a sharp decrease Tuesday caused by worries over exports to China.

China has informed Canada that it will start enforcing a tighter standard on dockage, or foreign material in canola shipments.

It will lower the allowable amount to one percent from a range of two to 2.5 percent, Reuters reported today.

The news started leaking out to the trade on Tuesday but became public only last night.

Unnamed sources in the trade told Reuters the new standards would be difficult and expensive to meet. Others believe it might not present a major detriment to sales

Click for full story: China to toughen standard on Canadian canola shipments

This week’s WP markets update looks deeper into the China issues.

Crops on American commodity exchanges generally fell on ample grain supply and advancing South American harvest and exports.

The U.S. Department of Agriculture will release the department’s acreage forecasts at its annual two-day Outlook Forum that are expected to say that farmers will plant more corn and soybeans this year than last year.

Light crude oil nearby futures in New York closed up 28 cents to US$32.15 per barrel.

The Canadian dollar at noon was US72.51 cents, down from 72.64 cents the previous trading day. The U.S. dollar at noon was C$1.3766.

The Toronto Stock Exchange’s S&P/TSX composite index closed down 23.17 points, or 0.18 percent, at 12,740.27.

The Dow Jones industrial average rose 0.32 percent to end at 16,484.99 points and the S&P 500 gained 0.44 percent to 1,929.8. The Nasdaq Composite added 0.87 percent to 4,542.61.

Winnipeg ICE Futures Canada dollars per tonne

Canola Mar 2016 460.70 +2.20 +0.48%

Canola May 2016 464.70 +3.00 +0.65%

Canola Jul 2016 470.10 +3.60 +0.77%

Canola Nov 2016 476.70 +5.90 +1.25%

Canola Jan 2017 481.30 +5.50 +1.16%

Milling Wheat Mar 2016 227.00 unch 0.00%

Milling Wheat May 2016 230.00 unch 0.00%

Milling Wheat Jul 2016 234.00 unch 0.00%

Durum Wheat Mar 2016 317.00 unch 0.00%

Durum Wheat May 2016 325.00 unch 0.00%

Durum Wheat Jul 2016 310.00 unch 0.00%

Barley Mar 2016 186.00 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 867.5 -1.75 -0.20%

Soybeans May 2016 872.25 -0.75 -0.09%

Soybeans Jul 2016 878.5 -0.5 -0.06%

Soybeans Aug 2016 880.5 -0.25 -0.03%

Soybeans Sep 2016 880 unch 0.00%

Soybeans Nov 2016 882.75 +0.5 +0.06%

Soybean Meal Mar 2016 262.9 -0.3 -0.11%

Soybean Meal May 2016 264.6 +0.3 +0.11%

Soybean Meal Jul 2016 267.2 +0.3 +0.11%

Soybean Oil Mar 2016 30.92 +0.17 +0.55%

Soybean Oil May 2016 31.19 +0.18 +0.58%

Soybean Oil Jul 2016 31.42 +0.17 +0.54%

Corn Mar 2016 359.75 -2.25 -0.62%

Corn May 2016 364.5 -2.25 -0.61%

Corn Jul 2016 370 -2 -0.54%

Corn Sep 2016 375.5 -2 -0.53%

Corn Dec 2016 383.75 -2.25 -0.58%

Oats Mar 2016 178 -4.75 -2.60%

Oats May 2016 187 -4 -2.09%

Oats Jul 2016 195 -4 -2.01%

Oats Sep 2016 201.25 -4 -1.95%

Oats Dec 2016 203 -0.75 -0.37%

Wheat Mar 2016 442.75 -5.25 -1.17%

Wheat May 2016 451.25 -4.5 -0.99%

Wheat Jul 2016 459.75 -4.25 -0.92%

Wheat Sep 2016 471.25 -4.75 -1.00%

Wheat Dec 2016 488 -4 -0.81%

Minneapolis

Spring Wheat Mar 2016 485.25 -0.5 -0.10%

Spring Wheat May 2016 491 -0.5 -0.10%

Spring Wheat Jul 2016 499.75 -0.25 -0.05%

Spring Wheat Sep 2016 510.25 +0.5 +0.10%

Spring Wheat Dec 2016 524.5 unch 0.00%

Kansas City

Hard Red Wheat Mar 2016 442.75 -3.5 -0.78%

Hard Red Wheat May 2016 453.75 -2.75 -0.60%

Hard Red Wheat Jul 2016 464.25 -2.75 -0.59%

Hard Red Wheat Sep 2016 477.5 -3 -0.62%

Hard Red Wheat Dec 2016 498.5 -2.75 -0.55%

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