Canola hangs on to gains

The canola futures market didn’t do much Monday.

But that meant it held onto recent gains, which have removed a small portion of the losses that have hammered in the last couple of months.

“It was quiet,” noted broker Ken Ball of P.I. Financial in Winnipeg.

March canola futures rose 10 cents to $442.10 per tonne in a day with a small trading range. Other crops hardly budged as well, continuing a quietude that has continued well past the usually somnolent end-of-year period.

Canola maintained its recent gains, which gives some relief to the oversold conditions some felt were afflicting canola futures. The crop has sold off more severely than some other crops since harvest, although in the past two weeks it has recovered almost $30 value relative to competitors.

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But that hasn’t come in the form of big gains in price, but rather in failing to follow declines in related crops.

“It held up while the U.S. markets went down,” said Ball.

Soybean futures have been exceptionally strong since October, showing none of the proclivity to sell off aggressively like canola has.

But soy oil futures have been increasingly weak, undermining the ability of canola to win back value compared to soybeans.

Most crops rose slightly Monday, minimizing the recent downward pressure. Another week of strong U.S. soybean exports, with China again a big buyer, helped prices Friday.

Spring wheat futures were flat, not continuing the recent inexorable slide but not rebounding strongly either. Chart optimists could find signs of support and bottoming in the last couple of days’ action, but even the most optimistic couldn’t argue a reversal is taking place yet.

The markets are beginning to look toward Friday’s U.S. Department of Agriculture World Agricultural Supply and Demand Estimates reports for direction as the winter season now truly begins.

Winnipeg ICE Futures Canada dollars per tonne

Canola Jan 2014    433.20    +0.10    +0.02%
Canola Mar 2014    442.10    +0.10    +0.02%
Canola May 2014    450.70    -0.10    -0.02%
Canola Jul 2014    458.60    -0.60    -0.13%
Canola Nov 2014    471.80    -0.50    -0.11%

Milling Wheat Mar 2014    183.00    unch    0.00%
Milling Wheat May 2014    191.00    unch    0.00%
Milling Wheat Jul 2014    195.00    unch    0.00%

Durum Wheat Mar 2014    242.00    unch    0.00%
Durum Wheat May 2014    246.00    unch    0.00%
Durum Wheat Jul 2014    247.00    unch    0.00%

Barley Mar 2014    146.00    unch    0.00%
Barley May 2014    148.00    unch    0.00%
Barley Jul 2014    148.00    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 2014    1296.75    +7.5    +0.58%
Soybeans Mar 2014    1276.75    +5.5    +0.43%
Soybeans May 2014    1261.5    +3.25    +0.26%

Soybeans Jul 2014    1251    +2.75    +0.22%
Soybeans Aug 2014    1221.5    +0.5    +0.04%
Soybeans Sep 2014    1164    -1.25    -0.11%

Soybean Meal Jan 2014    428.8    +4.3    +1.01%
Soybean Meal Mar 2014    413.8    +6.7    +1.65%
Soybean Meal May 2014    405.3    +5.2    +1.30%

Soybean Oil Jan 2014    37.87    -0.47    -1.23%
Soybean Oil Mar 2014    38.12    -0.48    -1.24%
Soybean Oil May 2014    38.48    -0.46    -1.18%

Corn Mar 2014    427.75    +4.25    +1.00%
Corn May 2014    435.75    +4    +0.93%
Corn Jul 2014    442.5    +3.75    +0.85%
Corn Sep 2014    448.75    +3.75    +0.84%
Corn Dec 2014    455.25    +3.25    +0.72%

Oats Mar 2014    350.75    +6.5    +1.89%
Oats May 2014    323.25    +3.25    +1.02%
Oats Jul 2014    315.25    +0.75    +0.24%
Oats Sep 2014    309    +2    +0.65%
Oats Dec 2014    302.5    -0.5    -0.17%

Wheat Mar 2014    605.75    unch    0.00%
Wheat May 2014    611.25    unch    0.00%
Wheat Jul 2014    614.25    -0.25    -0.04%
Wheat Sep 2014    623.75    -0.5    -0.08%
Wheat Dec 2014    637.75    unch    0.00%

Minneapolis
Spring Wheat Mar 2014    630.5    unch    0.00%
Spring Wheat May 2014    640    unch    0.00%
Spring Wheat Jul 2014    650.5    -0.25    -0.04%
Spring Wheat Sep 2014    659    -1    -0.15%
Spring Wheat Dec 2014    673.25    -1.25    -0.19%

Kansas City
KCBT Red Wheat Mar 2014    644    +1.5    +0.23%

KCBT Red Wheat May 2014    645.5    +1.25    +0.19%
KCBT Red Wheat Jul 2014    644.5    +0.5    +0.08%
KCBT Red Wheat Sep 2014    656.5    -0.25    -0.04%
KCBT Red Wheat Dec 2014    669.5    -0.75    -0.11%

Light crude oil nearby futures in New York dropped 53 cents at $93.43 US per barrel.
The Canadian dollar at noon was 93.82 cents US, down from 94.22 cents the previous trading day. The U.S. dollar at noon was $1.0659 Cdn.