Canola goes against tide and rallies higher

By D’Arce McMillan

Markets Editor

Twitter @ darcemcmillan

Stock markets were hammered lower Wednesday and most grain prices fell, but canola posted a second day of gains.

The loonie fell fourth-tenths of a cent, helping to support canola. Short covering also supported canola.

Canola gained only a little, with November rising 0.86 percent, however that was good considering November soybeans fell 1.27 percent and December soy oil fell 2.71 percent.

December corn fell 2.66 percent and Chicago wheat was down 0.64 percent.

However, Minneapolis spring wheat was almost unchanged.

Read Also

U.S. livestock: Cattle, hogs end week on high note

Cattle contracts and nearby hog futures ended the week on a high note after a week rife with losses. Most-traded…

Traders took profits today after U.S. crop markets rallied Monday and Tuesday on concerns about rain in the corn belt slowing the U.S. harvest.

Corn hit a six week high in overnight trade but sold off today on a forecast for drier weather over the next 15 days.

USDA weekly crop progress report issued Tuesday after the markets closed put the corn harvest at 24 percent complete, in line with expectations but behind the five-year average of 43 percent. It pegged the condition of the corn crop at 74 percent good-to-excellent, matching analyst expectations, Reuters reported.

The USDA said the U.S. soybean harvest was 40 percent complete as of Sunday, above market expectations for 31 percent but lagging the five-year average of 53 percent.

The USDA saw U.S. winter wheat planting at 68 percent complete, down slightly on analysts’ expectations for 69 percent, Reuters reported

Someone took at shot at kick starting the ICE Canada feed barley contract today. There were 25 trades and the December contract rose $1.50 to $119 per tonne. By comparison, the November canola contract traded almost 12,000 times, considered a light day.

Stock markets are undergoing a major correction on worries that the global economy is slowing.

Winnipeg ICE Futures Canada dollars per tonne

Canola Nov 2014 409.60 +4.80 +1.19%

Canola Jan 2015 414.80 +4.20 +1.02%

Canola Mar 2015 421.50 +3.60 +0.86%

Canola May 2015 426.30 +2.90 +0.68%

Canola Jul 2015 428.90 +2.10 +0.49%

Milling Wheat Dec 2014 217.00 unch 0.00%

Milling Wheat Mar 2015 226.00 unch 0.00%

Milling Wheat May 2015 229.00 unch 0.00%

Durum Wheat Dec 2014 356.50 unch 0.00%

Durum Wheat Mar 2015 357.50 unch 0.00%

Durum Wheat May 2015 357.50 unch 0.00%

Barley Dec 2014 119.00 +1.50 +1.28%

Barley Mar 2015 122.00 +1.50 +1.24%

Barley May 2015 122.00 +1.50 +1.24%

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

Chicago

Soybeans Nov 2014 952.5 -12.25 -1.27%

Soybeans Jan 2015 961 -12.25 -1.26%

Soybeans Mar 2015 969.75 -12 -1.22%

Soybeans May 2015 978.5 -11.75 -1.19%

Soybeans Jul 2015 985.5 -11.5 -1.15%

Soybeans Aug 2015 987.5 -11.5 -1.15%

Soybean Meal Dec 2014 327.3 +3.3 +1.02%

Soybean Meal Jan 2015 322.4 +1.5 +0.47%

Soybean Meal Mar 2015 317.7 +0.1 +0.03%

Soybean Oil Dec 2014 31.98 -0.89 -2.71%

Soybean Oil Jan 2015 32.26 -0.89 -2.68%

Soybean Oil Mar 2015 32.52 -0.9 -2.69%

Corn Dec 2014 347.5 -9.5 -2.66%

Corn Mar 2015 360.5 -9.5 -2.57%

Corn May 2015 369.5 -9.5 -2.51%

Corn Jul 2015 376.75 -9.5 -2.46%

Corn Sep 2015 384 -9.25 -2.35%

Oats Dec 2014 343.5 -1.75 -0.51%

Oats Mar 2015 329.5 -0.25 -0.08%

Oats May 2015 323.5 unch 0.00%

Oats Jul 2015 317.5 +0.75 +0.24%

Oats Sep 2015 320.5 unch 0.00%

Wheat Dec 2014 506 -3.25 -0.64%

Wheat Mar 2015 518 -3.25 -0.62%

Wheat May 2015 525 -3 -0.57%

Wheat Jul 2015 532.25 -3.5 -0.65%

Wheat Sep 2015 542.25 -4 -0.73%

Minneapolis

Spring Wheat Dec 2014 564.75 +1 +0.18%

Spring Wheat Mar 2015 572.75 -0.75 -0.13%

Spring Wheat May 2015 582 -0.25 -0.04%

Spring Wheat Jul 2015 592 +1.25 +0.21%

Spring Wheat Sep 2015 601.25 -1.25 -0.21%

Kansas City

Hard Red Wheat Dec 2014 592 +1.75 +0.30%

Hard Red Wheat Mar 2015 592.75 +1.25 +0.21%

Hard Red Wheat May 2015 591 +1.25 +0.21%

Hard Red Wheat Jul 2015 583 -0.5 -0.09%

Hard Red Wheat Sep 2015 594.25 -0.75 -0.13%

Light crude oil nearby futures in New York closed down six cents at $81.78 US per barrel. At one point it had sunk as low as 80.01

Brent crude for November delivery, which expires on Thursday, settled $1.26 lower at $83.78 a barrel, after trading earlier as low as $83.37, its weakest since 2010.

The Canadian dollar at noon was 88.58 cents US, down from 89 cents the previous trading day. The U.S. dollar at noon was $1.1289 Cdn.

Stock markets closed down, but well up from the lows set earlier in the day.

The Toronto Stock Exchange composite closed down 166.80 points, or 1.19 percent at 13,869.88.

The Dow Jones industrial average fell 173.45 points, or 1.06 percent, to 16,141.74, the S&P 500 lost 15.22 points, or 0.81 percent, to 1,862.48 and the Nasdaq Composite dropped 11.85 points, or 0.28 percent, to 4,215.32.