Canola futures rise on need to ration demand

Canola futures rose on Monday along with soybeans on thoughts that prices need to rise to ration demand for tight old crop stocks.

Gains were limited by weekend rain in Argentina that greatly reduced the area under stress and by weaker corn and wheat futures.

The U.S. Plains and Midwest got more snow in recent days, improving the prospect for wheat growth and corn seeding.

March canola closed at $630.30, up $4.30. May 13 closed at $627.20, up $9.60. November climbed $5.20 to $566.50.

Palm oil climbed a little on a bounce after recent declines and on thoughts the new lower price level would attract new demand.

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• USDA releases its monthly supply and demand report on Friday. While some analysts believe U.S. soybean and corn stocks might have to be revised down, a majority of analysts polled by Bloomberg think wheat stocks will be more than the current USDA forecast.

• Top red winter wheat producer Kansas today reported the amount of its wheat crop rated good to excellent rose one percentage point to 24 percent after recent snow storms.

Oklahoma’s good to excellent rating rose to 16 percent from nine percent a week earlier.

In Texas, where the entire crop has already emerged from winter dormancy, ratings were steady at 18 percent good to excellent.

• The Australian Bureau of Agriculture and Resource Economics and Sciences today forecast wheat seeding in 2013-14 will rise four percent.

It forecast production would climb 13 percent to 24.9 million tonnes, thanks to increased seeded area and higher yields from better growing conditions.

Winnipeg ICE Futures (per tonne)

Canola Mar 13 $630.30 +$4.30 +0.69%

Canola May 13 $627.20 +$9.60 +1.55%

Canola Jul 13 $619.40 +$10.00 +1.64%

Canola Nov 13 $566.50 +$5.20 +0.93%

Milling Wheat Mar 13 $291.00 unchanged

Milling Wheat May 13 $294.00 unchanged

Milling Wheat Jul 13 $296.00 unchanged

Milling Wheat Oct 13 $296.00 unchanged

Durum Wheat Mar 13 $307.00 unchanged

Durum Wheat May 13 $311.00 unchanged

Durum Wheat Jul 13 $314.00 unchanged

Durum Wheat Oct 13 $299.30 unchanged

Barley Mar 13 $241.50 unchanged

Barley May 13 $242.50 unchanged

Barley Jul 13 $243.00 unchanged

Barley Oct 13 $243.00 unchanged

Chicago (per bushel)

Soybeans (P) Mar 13 $14.9025 +25.75 cents +1.76%

Soybeans (P) May 13 $14.62 +18.5 +1.28%

Soybeans (P) Jul 13 $14.4325 +16.0 +1.12%

Soybeans (P) Aug 13 $14.0225 +14.25 +1.03%

Soybeans (P) Sep 13 $13.2675 +9.75 +0.74%

Soybeans (P) Nov 13 $12.6925 +8.0 +0.63%

Corn (P) Mar 13 $7.23 -1.25 -0.17%

Corn (P) May 13 $7.0325 -5.25 -0.74%

Corn (P) Jul 13 $6.8175 -5.25 -0.76%

Corn (P) Sep 13 $5.78 -6.25 -1.07%

Corn (P) Dec 13 $5.5025 -6.5 -1.17%

Oats (P) Mar 13 $4.035 +1.0 +0.25%

Oats (P) May 13 $3.8425 +4.5 +1.18%

Oats (P) Jul 13 $3.725 +0.25 +0.07%

Oats (P) Sep 13 $3.67 -2.25 -0.61%

Oats (P) Dec 13 $3.64 -3.0 -0.82%

Minneapolis (per bushel)

Spring Wheat Mar 13 $8.075 -12.25 cents -1.49%

Spring Wheat May 13 $7.9225 -13.0 -1.61%

Spring Wheat Jul 13 $7.9575 -14.0 -1.73%

Spring Wheat Sep 13 $7.9525 -15.25 -1.88%

Spring Wheat Dec 13 $8.0275 -12.25 -1.50%

The Bank of Canada noon rate for the loonie fell to 97.11 cents US, down from 97.23 on Friday.

The U.S. buck was $1.0298 Cdn.

Light crude oil in New York fell 56 cents to close at $90.12 per barrel.

The S&P/TSX composite closed down 65.71 points, or 0.51 percent, at 12,707.41.

The Dow Jones industrial average rose 38.16 points, or 0.27 percent, to 14,127.82 at the close.

The Standard & Poor’s 500 Index gained 7.00 points, or 0.46 percent, to 1,525.20.

The Nasdaq Composite Index added 12.29 points, or 0.39 percent, to end at 3,182.03.

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