Canola futures rose slightly in trade characterized by modest position adjustments ahead of Thursday’s USDA world supply and demand report.
March canola closed at $534.20 per tonne, up $1.70.
Canola had technical strength after breaking above the 100 day moving average on Tuesday.
• A negative in the market was more rain in Argentina that is helping to reduce drought damage in the country’s soybean crop. Its corn crop developed earlier and suffered more damage from the heat and dryness.
• Rain and snow in Algeria in North Africa reduced concerns about its crops, which were suffering after several weeks without moisture. Algeria is a major producer and buyer of durum. Next door Morocco, which is also dry, did not get moisture.
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U.S. grains: Soybean futures set two-week high on US weather worry, soyoil rally
Chicago Board of Trade soybean futures touched a two-week high on Friday on worries that heat may threaten U.S. crops and expectations that the country’s biofuel policy would boost demand for soyoil, analysts said.
• Europe enjoyed moderating weather after a severe cold snap might have caused modest damage to rapeseed.
• Chicago wheat edged lower but Minneapolis gained slightly on concerns about dry soil and lack of snow cover in the U.S. northern plains and Canadian prairies.
• USDA is expected to make small reductions to U.S. ending stocks of corn and soybeans on Thursday.
• The end of a U.S. ethanol subsidy Dec. 31 is helping to cause a build up of ethanol stocks in the U.S. It is pressuring ethanol prices down and causing many plants to lose money. Demand for the fuel will likely pick up as summer driving season approaches.
However the loss of the subsidy means the ethanol industry’s growth will be restricted. The slow or no growth could mean there is less need for a big expansion of U.S. corn acres this spring.
Winnipeg (per tonne)
Canola Mar 12 $534.20, up $1.70 (+0.32%)
Canola May 12 $537.80, up $1.60 (+0.30%)
Canola Jul 12 $540.60, up $1.10 (+0.20%)
Canola Nov 12 $517.70, up $0.60 (+0.12%)
The previous trading day’s best basis was still $7.27 per tonne off the March contract, said the ICE Futures Canada exchange in Winnipeg.
The 14-day relative strength index was 62.
Western Barley Mar 12 $212.00, unchanged
Western Barley May 12 $216.00, unchanged
Milling Wht Oct 12 $265.00, unchanged
Milling Wht Dec 12 $269.50, unchanged
Milling Wht Mar 13 $274.50, unchanged
Durum Wht Oct 12 $269.00, unchanged
Durum Wht Dec 12 $273.50, unchanged
Durum Wht Mar 13 $278.50, unchanged
Barley Oct 12 $180.00, unchanged
Barley Dec 12 $184.00, unchanged
Barley Mar 13 $185.50, unchanged
Chicago (per bushel)
Soybeans Mar 12 $12.315, down 0.5 cent (-0.04%)
Soybeans May 12 $12.40, down 1.0 (-0.08%)
Soybeans Nov 12 $12.40 down 1.25 (-0.10%)
Corn Mar 12 $6.425, up 0.25 (+0.04%)
Corn May 12 $6.48, down 0.5 (-0.08%)
Corn Dec 12 $5735, down 1.75 (-0.30%)
Oats Mar 12 $3.28, up 0.25 (+0.08%)
Oats May 12 $3.13, down 4.0 (-1.26%)
Oats Dec 12 $3.175, down 4.0 (-1.24%)
Minneapolis (per bushel)
Spring Wht Mar 12 $8.415, up 3.0 cents (+0.36%)
Spring Wht May 12 $8.28, up 2.25 (+0.27%)
Spring Wht Dec 12 $7.9175, up 1.0 (+0.13%)
Nearby light crude oil in New York gained 30 cents to settle at $98.71 a barrel.
The Canadian dollar at noon was $1.0030 US, down from $1.0052 the previous trading day. The U.S. dollar at noon was 99.70 cents Cdn.
The Toronto Stock Exchange composite unofficially closed up 8.60 points, or 0.07 percent, at 12,521.02.
The Dow Jones industrial average unofficially rose 5.22 points, or 0.04 percent, at 12,883.42. The Standard & Poor’s 500 Index climbed 3.01 points, or 0.22 percent, at 1,350.06. The Nasdaq Composite Index was up 12.10 points, or 0.42 percent, at 2,916.18.
