More rain forecasts for Argentina knocked soybeans down more than 2.5 percent, dragging March canola down about one percent.
Canola gave back most of the gains it made Monday when the American markets were closed for Martin Luther King Jr day. Modest downward pressure from commercial hedges added to the weakness in canola.
In the cash market, canola basis in the country appears to be improving a little, likely in response to warmer temperatures and fewer weather related rail delays.
Soy oil rose one percent and that helped lift palm oil but gains were limited by thoughts that palm exports are sluggish.
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After a sweltering weather last week, Argentina’s soybean growing regions are a bit cooler and are getting rain. They got moisture on Monday and more rain is forecast for Thursday and Friday.
U.S. soy exports have been robust until now but worries are creeping into the markets that China could cancel or delay U.S. orders once the South American harvest gets beans moving to port. However, there is the chance that Brazil could suffer the sort of transportation bottlenecks that plagued it last year, causing huge backlog of ships waiting to load. Sound familiar?
Falling soy put pressure on corn but then traders moved in with bargain buying to cause the nearby contract to close up a fraction of a cent.
Spring wheat spent part of the day a little higher but closed down slightly. In general wheat was under pressure because of the weekly U.S. export inspections report which was well under the range of analysts’ expectations.
The U.S. Midwest is expecting another cold snap this week. Pockets of the soft winter wheat crop are a risk of damage from the cold.
It turned colder in the European parts of Russia after an unusually warm start to January but snow fell and that should provide protection for the winter wheat crop there.
In other markets, Brent oil rose above $107 a barrel on Tuesday as the International Energy Agency raised its forecast for global oil demand this year, citing accelerating economic growth that would outstrip supply, Reuters reported.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2014 431.10 -4.40 -1.01%
Canola May 2014 440.50 -4.20 -0.94%
Canola Jul 2014 449.00 -4.40 -0.97%
Canola Nov 2014 463.30 -4.00 -0.86%
Canola Jan 2015 468.80 -4.30 -0.91%
Milling Wheat Mar 2014 180.00 -2.00 -1.10%
Milling Wheat May 2014 185.00 -1.00 -0.54%
Milling Wheat Jul 2014 188.00 unch 0.00%
Durum Wheat Mar 2014 243.00 unch 0.00%
Durum Wheat May 2014 247.00 unch 0.00%
Durum Wheat Jul 2014 248.00 unch 0.00%
Barley Mar 2014 127.00 unch 0.00%
Barley May 2014 129.00 unch 0.00%
Barley Jul 2014 129.00 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 2014 1280.5 -36 -2.73%
Soybeans May 2014 1264 -33.25 -2.56%
Soybeans Jul 2014 1249.75 -32.25 -2.52%
Soybeans Aug 2014 1214.75 -26.5 -2.13%
Soybeans Sep 2014 1151.75 -19.75 -1.69%
Soybeans Nov 2014 1109 -16 -1.42%
Soybean Meal Mar 2014 416.5 -18 -4.14%
Soybean Meal May 2014 403.7 -17 -4.04%
Soybean Meal Jul 2014 396 -15.9 -3.86%
Soybean Oil Mar 2014 38.1 +0.36 +0.95%
Soybean Oil May 2014 38.41 +0.35 +0.92%
Soybean Oil Jul 2014 38.76 +0.33 +0.86%
Corn Mar 2014 425 +1 +0.24%
Corn May 2014 432.25 +0.5 +0.12%
Corn Jul 2014 438.5 unch 0.00%
Corn Sep 2014 442.5 -0.75 -0.17%
Corn Dec 2014 447 -2 -0.45%
Oats Mar 2014 399.25 -0.25 -0.06%
Oats May 2014 356.5 -0.75 -0.21%
Oats Jul 2014 325.75 -0.75 -0.23%
Oats Sep 2014 311 unch 0.00%
Oats Dec 2014 297.75 -0.5 -0.17%
Wheat Mar 2014 562.25 -1.25 -0.22%
Wheat May 2014 569 -1.5 -0.26%
Wheat Jul 2014 575.5 -1.5 -0.26%
Wheat Sep 2014 584.75 -1 -0.17%
Wheat Dec 2014 597.5 -1 -0.17%
Minneapolis
Spring Wheat Mar 2014 613.75 -4 -0.65%
Spring Wheat May 2014 614 -1 -0.16%
Spring Wheat Jul 2014 622.25 -0.25 -0.04%
Spring Wheat Sep 2014 630 unch 0.00%
Spring Wheat Dec 2014 642.5 -0.25 -0.04%
Kansas City
KCBT Red Wheat Mar 2014 621.25 -2 -0.32%
KCBT Red Wheat May 2014 619 -2 -0.32%
KCBT Red Wheat Jul 2014 614 -3.5 -0.57%
KCBT Red Wheat Sep 2014 626 -2.75 -0.44%
KCBT Red Wheat Dec 2014 639.25 -2.75 -0.43%
Light crude oil nearby futures in New York rose 62 cents at $94.99 US per barrel.
The Canadian dollar at noon was 91.14 cents US, down from 91.22 cents the previous trading day. The U.S. dollar at noon was $1.0972 Cdn.
Stock market traders are focusing on corporate quarterly earnings reports to see if profits justify the run up in share prices in the past year.
The TSX composite closed at 13,951.77, down 38.52 points or 0.28 percent.
In U.S. markets there was not a clear direction.
The Dow Jones industrial average fell 42.9 points or 0.26 percent, to 16,415.66; the S&P 500 gained 5.1 points or 0.28 percent, to 1,843.8; the Nasdaq Composite added 28.179 points or 0.67 percent, to 4,225.76.
