Canola futures rise on technical buying and stronger oil

ICE Canada canola rose on Wednesday, supported by technical buying and fighting off the negative effects of a stronger loonie.

Funds were seen adding to their net long canola position, with the March contract trading above key moving averages.

Exporters may also have been buyers, a trader told Reuters.

Support also came from stronger soy oil and palm oil.

January canola closed at $478.80, up $3.90.

Soybeans, corn and wheat were all lower.

>>>Watch our Weekly Crop Market Video

Soybeans were weighed down by forecasts that show more rain in Brazil than was expected a few days ago.

Chicago wheat edged lower, posting a three week low on ample global supply and slow U.S. wheat exports.

Argentine wheat won a contract to supply Egypt with 120,000 tonnes of wheat, showing that the devaluation of the peso and elimination of export taxes have made the South American country a more formidable competitor.

Argentina’s government today said its wheat harvest this year should hit 10.9 million tonnes, about in the middle of its previous forecast of 10 to 12 million tonnes. USDA’s forecast is 10.5 million tonnes.

Last year it produced 12.5 million tonnes.

Forecasts for snow in U.S. wheat-growing areas, including Kansas and Texas, added pressure to prices, traders said. Snow cover could protect dormant crops from damage from frigid temperatures this winter.

Corn markets were also down slightly with pressures similar to the wheat market.

Light crude oil nearby February futures in New York were up $1.36 cents to US$37.50 per barrel.

The Canadian dollar at noon was US72.15 cents, up from 71.79 cents the previous trading day. The U.S. dollar at noon was C$1.3860.

U.S. crude oil inventories fell but still hovered near multi-year lows. U.S. consumer sentiment was at a five-month high in December and personal income rising for the eighth straight month in November.

In late afternoon trade, the Toronto TSX composite was up more than one percent and the Dow was up about one percent, supported by the stronger crude oil price

Winnipeg ICE Futures Canada dollars per tonne

Canola Jan 2016 478.80 +3.90 +0.82%

Canola Mar 2016 487.70 +3.60 +0.74%

Canola May 2016 492.90 +2.60 +0.53%

Canola Jul 2016 494.90 +1.30 +0.26%

Canola Nov 2016 489.80 +3.00 +0.62%

Milling Wheat Mar 2016 238.00 unch 0.00%

Milling Wheat May 2016 242.00 unch 0.00%

Milling Wheat Jul 2016 246.00 unch 0.00%

Durum Wheat Mar 2016 318.00 unch 0.00%

Durum Wheat May 2016 326.00 unch 0.00%

Durum Wheat Jul 2016 326.00 unch 0.00%

Barley Mar 2016 184.00 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 Jan 2016 881.75 -3.5 -0.40%

Soybeans Mar 2016 880.75 -4.75 -0.54%

Soybeans May 2016 884.75 -5.75 -0.65%

Soybeans Jul 2016 891.75 -5.5 -0.61%

Soybeans Aug 2016 893.5 -5 -0.56%

Soybeans Sep 2016 892.75 -5.25 -0.58%

Soybean Meal Jan 2016 272.4 -4.5 -1.63%

Soybean Meal Mar 2016 274.2 -4.4 -1.58%

Soybean Meal May 2016 277.2 -3.9 -1.39%

Soybean Oil Jan 2016 30.52 +0.08 +0.26%

Soybean Oil Mar 2016 30.76 +0.07 +0.23%

Soybean Oil May 2016 30.96 +0.06 +0.19%

Corn Mar 2016 365.5 -0.75 -0.20%

Corn May 2016 371.75 -0.75 -0.20%

Corn Jul 2016 377.75 -0.75 -0.20%

Corn Sep 2016 382.25 -0.5 -0.13%

Corn Dec 2016 390 -0.5 -0.13%

Oats Mar 2016 221.75 -3.25 -1.44%

Oats May 2016 222.75 -3 -1.33%

Oats Jul 2016 226 -2.25 -0.99%

Oats Sep 2016 231 -1.25 -0.54%

Oats Dec 2016 230.25 unch 0.00%

Wheat Mar 2016 469.5 -2.25 -0.48%

Wheat May 2016 477 -2 -0.42%

Wheat Jul 2016 485 -1.75 -0.36%

Wheat Sep 2016 495 -1.5 -0.30%

Wheat Dec 2016 509.25 -1.5 -0.29%

Minneapolis

Spring Wheat Mar 2016 496.75 -1 -0.20%

Spring Wheat May 2016 506 -0.25 -0.05%

Spring Wheat Jul 2016 516 -0.25 -0.05%

Spring Wheat Sep 2016 527.75 -0.75 -0.14%

Spring Wheat Dec 2016 544.25 -1 -0.18%

Kansas City

Hard Red Wheat Mar 2016 469 -1.5 -0.32%

Hard Red Wheat May 2016 479 -2 -0.42%

Hard Red Wheat Jul 2016 489.75 -1.75 -0.36%

Hard Red Wheat Sep 2016 503.75 -1.75 -0.35%

Hard Red Wheat Dec 2016 522.75 -1 -0.19%

Your reading list