Canola futures rally with China news, soy oil support

Canola futures rose to the highest level in a month on Tuesday supported by news that China will delay implementing its new dockage rule and by stronger U.S. crop futures.

Dry weather in the U.S. southern plains and a cold snap in the Midwest supported U.S. crop futures.

May canola rose 0.76 percent or $3.60 to $478.10 per tonne even as the Canadian dollar rallied above US76 cents.

For more on the China story see: China delays implementation of new Canadian canola standard -Chinese Embassy

The seven day outlook for precipitation on the Prairies remains dry for most of the western half. Repeated light snow or rain events are expected to provide modest moisture accumulation in west central Saskatchewan.

Most of the hard red winter wheat region in the U.S. southern Plains remains dry for the next seven days.

The dryness appears to be a bigger concern than the recent cold snaps that caused apparently only light damage to areas where the wheat was already jointing.

Although there is concern about the weather, the weekly state crop condition reports are not deteriorating.

While there is no moisture in the medium term forecasts, the season forecast for spring indicates above normal moisture in the southern Plains.

Cold, wet weather is about to push down into the U.S. Midwest, delaying seeding preparations. It could also slow the growth of soft red winter wheat.

U.S. Federal Reserve chair Janet Yellen said in remarks to the Economic Club of New York that mixed signs of strength and weakness in the U.S. economy will cause the bank to be cautious in moving to its next interest rate hike.

Stock markets reacted favourably to the comments and the U.S. dollar weakened

Palm oil futures are near two year highs as the trade expects that El Nino induced dry weather last fall and early winter will crimp production for the first half of this year.

The USDA releases is first planting farmer survey of the year on Thursday.

Analysts expect the report will show corn plantings at 90 million acres, up 2.2 percent from 2015, and soybean plantings at 83.1 million, up 0.5 percent.

The crude oil rally that ran until the middle of this month might have run out of steam after peaking at about US$42. Prices have generally edged lower for the past several days.

The Toronto Stock Exchange’s S&P/TSX composite index unofficially closed up 36.04 points, or 0.27 percent, at 13,426.23.

The Dow Jones industrial average rose 0.56 percent to end at 17,633.11 points and the S&P 500 gained 17.96 points to 2,055.01. The Nasdaq Composite rallied 1.67 percent to 4,846.62, its highest close this year.

Light crude oil nearby futures in New York were down $1.11 to US$38.28 per barrel.

The Canadian dollar at noon was US76.02 cents, up from 75.85 cents the previous trading day. The U.S. dollar at noon was C$1.3154.

Winnipeg ICE Futures Canada dollars per tonne

Canola May 2016 478.10 +3.60 +0.76%

Canola Jul 2016 483.10 +3.90 +0.81%

Canola Nov 2016 481.90 +1.00 +0.21%

Canola Jan 2017 485.40 +1.40 +0.29%

Canola Mar 2017 487.10 +2.60 +0.54%

Milling Wheat May 2016 241.00 +2.00 +0.84%

Milling Wheat Jul 2016 241.00 +2.00 +0.84%

Milling Wheat Oct 2016 239.00 +3.00 +1.27%

Durum Wheat May 2016 296.00 +3.00 +1.02%

Durum Wheat Jul 2016 288.00 +3.00 +1.05%

Durum Wheat Oct 2016 285.00 +5.00 +1.79%

Barley May 2016 176.00 unch 0.00%

Barley Jul 2016 178.00 unch 0.00%

Barley Oct 2016 178.00 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 916 +7 +0.77%

Soybeans Jul 2016 922.75 +6.75 +0.74%

Soybeans Aug 2016 924.75 +6.5 +0.71%

Soybeans Sep 2016 925 +6.75 +0.74%

Soybeans Nov 2016 928.5 +6.5 +0.70%

Soybeans Jan 2017 931.75 +6 +0.65%

Soybean Meal May 2016 273.2 +1.1 +0.40%

Soybean Meal Jul 2016 275.8 +1.3 +0.47%

Soybean Meal Aug 2016 276.9 +1.3 +0.47%

Soybean Oil May 2016 34.05 +0.42 +1.25%

Soybean Oil Jul 2016 34.28 +0.42 +1.24%

Soybean Oil Aug 2016 34.37 +0.43 +1.27%

Corn May 2016 373 +2.5 +0.67%

Corn Jul 2016 377.25 +2.5 +0.67%

Corn Sep 2016 381.75 +2.25 +0.59%

Corn Dec 2016 389.5 +2 +0.52%

Corn Mar 2017 398 +2.25 +0.57%

Oats May 2016 189.75 -0.25 -0.13%

Oats Jul 2016 199.75 -0.5 -0.25%

Oats Sep 2016 207 +0.5 +0.24%

Oats Dec 2016 215 +1.75 +0.82%

Oats Mar 2017 219.5 +1.75 +0.80%

Wheat May 2016 476.75 +5.75 +1.22%

Wheat Jul 2016 483.75 +5.75 +1.20%

Wheat Sep 2016 493.25 +5.25 +1.08%

Wheat Dec 2016 507 +5 +1.00%

Wheat Mar 2017 520.25 +4.75 +0.92%

Minneapolis

Spring Wheat May 2016 522.25 +4.5 +0.87%

Spring Wheat Jul 2016 530.25 +4.75 +0.90%

Spring Wheat Sep 2016 540 +4.75 +0.89%

Spring Wheat Dec 2016 553.25 +4.5 +0.82%

Spring Wheat Mar 2017 566 +3.75 +0.67%

Kansas City

Hard Red Wheat May 2016 481.75 +4.75 +1.00%

Hard Red Wheat Jul 2016 492.75 +4.75 +0.97%

Hard Red Wheat Sep 2016 506.75 +5 +1.00%

Hard Red Wheat Dec 2016 527 +5.75 +1.10%

Hard Red Wheat Mar 2017 539 +5.5 +1.03%

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