November canola climbed almost two percent Wednesday, supported by generally higher crop futures that were led by wheat.
After five days of falling wheat prices, traders today covered themselves in the market ahead of a meeting of Russian leaders on Friday who will discuss the possibility of limiting wheat exports. December spring wheat closed up more than 30 cents a bushel or about 3.5 percent.
The latest weekly harvest report from Russia shows that with 62 percent of the crop harvested, yields are down 27 percent from last year.
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It appears the wheat crop there will be as bad or perhaps worse than the 2010 crop. In that year, the government prevented wheat exports to keep domestic food prices down.
Canola was supported by regular buying by domestic crushers and export sources. Indications of poor canola yields and oil content in some regions of the Prairies also supported the price.
November canola near the end of trade was $633.30, up $11.90, or 1.92 percent.
Hurricane Isaac made landfall in the New Orleans area. As it moves inland over the next couple of days it is expected to dump large amounts of rain in the Mississippi Delta, the southern Midwest and into the Central Plains.
The market has started to look at the storm as negative for production, although it will break the drought in the southern half of the country.
The rain is welcome in areas where winter wheat seeding will begin next month. The moisture might provide marginal help to late seeded soybeans but it will also interfere with harvest progress and might lead to flooded fields. Trade later in the day seemed to focus on the crop damage aspect of the story driving U.S. crop prices higher.
The wider market continues to speculate what U.S. Federal Reserve Chair Ben Bernanke will say on Friday about the potential for the bank to increase stimulus.
Winnipeg (per tonne)
Canola Nov 12 633.50, up $12.10 (+1.95%)
Canola Jan 13 637.40, up $11.90 (+1.90%)
Canola Mar 13 638.30, up $13.00 (+2.08%)
Canola May 13 627.00, up $14.40 (+2.35%)
Milling Wheat Oct 12 $301.80, up $6.60 +2.24%
Milling Wheat Dec 12 $309.00, up $9.00 +3.00%
Milling Wheat Mar 13 $318.70, up $8.80
Durum Wheat Oct 12 $300.50, unchanged
Durum Wheat Dec 12 $305.00, unchanged
Durum Wheat Mar 13 $311.60, unchanged
Barley Oct 12 $264.50, unchanged
Barley Dec 12 $269.50, unchanged
Barley Mar 13 $272.50, unchanged
Chicago (per bushel)
Soybeans (P) Sep 12 $17.6325, up 30.75 +1.77%
Soybeans (P) Nov 12 $17.53, up 30.75 +1.79%
Soybeans (P) Jan 13 $17.425, up 28.0 +1.63%
Soybeans (P) Mar 13 $16.63, up 24.75 +1.51%
Corn (P) Sep 12 $8.1025, up 20.75 +2.63%
Corn (P) Dec 12 $8.135, up 18.0 +2.26%
Corn (P) Mar 13 $8.13, up 16.5 +2.07%
Oats (P) Sep 12 $3.8725, up 13.25 +3.54%
Oats (P) Dec 12 $3.96, up 13.5 +3.53%
Oats (P) Mar 13 $3.9575, up 13.0 +3.40%
Minneapolis (per bushel)
Spring Wheat Sep 12 $9.405, up 30.5 cents +3.35%
Spring Wheat Dec 12 $9.55, up 31.25 +3.38%
Spring Wheat Mar 13 $9.6375, up 30.75 +3.30%
Spring Wheat May 13 $9.695, up 30.75 +3.28%
The Bank of Canada noon rate for the loonie was $1.0127 US, down from $1.0138 the day before.
The U.S. dollar was 98.75 cents Cdn.
Nearby crude oil in New York was down 84 cents at $95.49 per barrel.
In early tallies:
Toronto Stock Exchange S&P/TSX composite index was almost unchanged, falling 0.11 points to 12,009.79.
The Dow Jones industrial average edged up 4.49 points, or 0.03 percent, to 13,107.48.
The S&P 500 Index rose1.20 points, or 0.09 percent, to 1,410.50.
The Nasdaq Composite added 4.04 points, or 0.13 percent, to 3,081.19.
