Canola hangs tough as market worries about Greek debt

Western Canadian farmers are not delivering and in some places are waiting to get back into fields to seed after heavy weekend rain and that supported canola futures on Tuesday, a day when many markets were down.

July canola settled at $619.60, down $1.10 .

November was trading at $572.30, up $0.30.

Slow farmer selling and steady commercial buying helped keep canola mostly steady.

Delayed seeding and excess moisture problems in eastern Saskatchewan after the weekend rain, also supported canola.

A weaker loonie also lent support.

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Soybeans fell, but corn was up. Spring wheat was down.

Corn enjoyed support from a hot cash market and worries about declining old crop stocks. American farmers are holding on to the corn they have and basis levels are rising.

Soybeans fell on profit taking after the strong rally this spring.

• Stocks, crude oil and other commodities were down as worries grow about the euro zone debt issues.

Greece’s Left Coalition party is attempting to put together a coalition government after the weekend national ballot where voters rejected the austerity measures put in place to address the country’s debt crisis.

The leader of the Left Coalition, which came second in the election, renounced the terms of the bailout that is keeping Greece’s finances afloat and he threatened to nationalize banks. The head of the Conservative party, which got the most votes in the election but not enough to form government, said he would not support a minority government that rejects the bailout.

If a coalition government can’t be formed another vote might have to be held. If Greece does not stick to its aid package terms, the money could be cut off and the country could default.

• German oilseeds analyst Oil World cut its forecast of Argentina’s soybean crop by 1.5 million tonnes to 41 million tonnes.

Oil World said it might also have to shave another 500,000 tonnes from its current Brazil soybean forecast of 65 million tonnes, .

USDA will release its forecast of South American soybean production and of other world crops on Thursday. It will also have its first forecast of the size fo the U.S. winter wheat crop.

Winnipeg (per tonne)

Canola May 12 $624.60, down $1.10 -0.18%

Canola Jul 12 $619.60, down $1.10 -0.18%

Canola Nov 12 $572.30, up $0.30 +0.05%

Canola Jan 13 $575.90, up $0.20 +0.03%

The best basis in the par region on the previous day was $4 over the July contract, according to ICE Futures Canada.

The 14-day relative strength index was 53.

Western Barley May 12 $242.00, unchanged

Western Barley Jul 12 $237.00, unchanged

Milling Wheat Oct 12 $243.00, unchanged

Milling Wheat Dec 12 $248.00, unchanged

Milling Wheat Mar 13 $257.00, unchanged

Durum Wheat Oct 12 $275.60, down $0.50 -0.18%

Durum Wheat Dec 12 $280.10, down $0.50 -0.18%

Durum Wheat Mar 13 $286.70, down $0.50 -0.17%

Barley Oct 12 $184.00, unchanged

Barley Dec 12 $188.00, up $1.00 +0.53%

Barley Mar 13 $189.50, up $1.00 +0.53%

Chicago (per bushel)

Soybeans May 12 $14.3775, down 25.75 cents -1.76%

Soybeans Jul 12 $14.3825, down 27.5 -1.88%

Soybeans Nov 12 $13.405, down 13.0 -0.96%

Corn May 12 $6.66, up 1.0 +0.15%

Corn Jul 12 $6.23, up 3.0 +0.48%

Corn Dec 12 $5.28, up 3.25 +0.62%

Oats May 12 $3.3225, up 0.75 +0.23%

Oats Jul 12 $3.3775, up 0.25 +0.07%

Oats Dec 12 $3.455, down 1.75 -0.50%

Minneapolis (per bushel)

Spring Wheat May 12 $7.3175, down 3-6 -0.51%

Spring Wheat Jul 12 $7.325, down 3-4 -0.48%

Spring Wheat Sep 12 $7.3625, down 2-0 -0.27%

Spring Wheat Dec 12 $7.4425, down 2-6 -0.37%

Light crude oil in New York closed at $97.01 per barrel, down 93 cents.

The Canadian dollar noon rate was $1.0003 US, down from $1.0065 the previous trading day.

The U.S. dollar at noon was 99.97 Cdn.

This report will be updated when stock markets close.

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