Canola and soybeans posted strong gains Monday while cereals retreated a little.
Dry weather in Argentina supported oilseeds as did word of more sales of U.S. soybeans to China.
Also, AgRural, a Brazilian analyst, shaved its soybean production forecast to 81.2 million tonnes, down one million from last month. Heavy rain is delaying the Brazilian harvest in some regions.
The oilseed rally came as equity and oil markets dropped, with traders taking profits after several weeks of strong gains.
March canola closed at $633.10, up $8.60. January closed at $565.50, up $4.10.
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Statistics Canada will release its grain stocks report Tuesday, perhaps helping to settle the questions of just how tight the stocks of canola actually are and how big the 2012 crop was.
• The average of a Bloomberg survey of 23 analysts pegged Argentina’s soybean harvest at 52.9 million metric tonnes. USDA’s January forecast was 54 million. That number will also be updated in the Friday report.
• Corn and wheat fell on technical signals, with March corn falling below its 200 day moving average support.
Slow demand from livestock feeders, ethanol producers and the export market might cause USDA to revise its year end stocks forecast when it makes its monthly report on Friday.
Read the Feb. 7 Western Producer Markets section for more on corn demand, as well as information on the problems Brazil has in exporting its huge crop. There is also opinion on how much price risk farmers want to carry going into 2013-14, considering the potential for bigger crops that could drive prices significantly lower.
Then again, it might stay dry in the U.S., but do you want to roll the dice on that?
• Open outcry trading pits at the 156-year-old Kansas City Board of Trade, famous for its hard red winter wheat contract, will close on June 28.
CME Group bought the Kansas City exchange last year.
CME is moving the KCBT wheat futures pit and option pits to its Chicago trading floor, next to the CBOT wheat pits.
Winnipeg ICE Futures (per tonne)
Canola Mar 13 $633.10, up $8.60 +1.38%
Canola May 13 $621.60, up $7.60 +1.24%
Canola Jul 13 $611.30, up $7.00 +1.16%
Canola Nov 13 $565.50, up $4.10 +0.73%
Milling Wheat Mar 13 $291.00, unchanged
Milling Wheat May 13 $294.00, unchanged
Milling Wheat Jul 13 $296.00, unchanged
Milling Wheat Oct 13 $296.00, unchanged
Durum Wheat Mar 13 $312.40, unchanged
Durum Wheat May 13 $316.40, unchanged
Durum Wheat Jul 13 $319.40, unchanged
Durum Wheat Oct 13 $304.70, unchanged
Barley Mar 13 $241.50, unchanged
Barley May 13 $242.50, unchanged
Barley Jul 13 $243.00, unchanged
Barley Oct 13 $243.00, unchanged
Chicago (per bushel)
Soybeans (P) Mar 13 $14.8875, up 14.5 cents +0.98%
Soybeans (P) May 13 $14.8025, up 14.75 +1.01%
Soybeans (P) Jul 13 $14.705, up 15.25 +1.05%
Soybeans (P) Aug 13 $14.42, up 16.0 +1.12%
Soybeans (P) Sep 13 $13.89, up 14.5 +1.05%
Soybeans (P) Nov 13 $13.44, up 11.5 +0.86%
Corn (P) Mar 13 $7.3425, down 1.75 -0.24%
Corn (P) May 13 $7.3625, down 1.5 -0.20%
Corn (P) Jul 13 $7.275, down 1.25 -0.17%
Corn (P) Sep 13 $6.1775, up 1.5 +0.24%
Corn (P) Dec 13 $5.9375, up 1.75 +0.30%
Oats (P) Mar 13 $3.5975, up 0.5 +0.14%
Oats (P) May 13 $3.6525, down 0.5 -0.14%
Oats (P) Jul 13 $3.7025, down 0.75 -0.20%
Oats (P) Sep 13 $3.695, down 0.75 -0.20%
Oats (P) Dec 13 $3.6675, down 0.75 -0.20%
Minneapolis (per bushel)
Spring Wheat Mar 13 $8.47, down 4.75 cents -0.56%
Spring Wheat May 13 $8.5975, down 4.5 -0.52%
Spring Wheat Jul 13 $8.695, down 4.5 -0.51%
Spring Wheat Sep 13 $8.7125, down 4.25 -0.49%
Spring Wheat Dec 13 $8.7625, down 3.5 -0.40%
The Canadian dollar gained a tenth of a cent, rising to $1.0023 US at noon, up from $1.0013 on Friday.
The Bank of Canada said the U.S. buck was 99.77 cents Cdn.
Nearby crude oil plunged $1.60 to $96.17 per barrel due mainly to profit taking after several weeks of gains.
Stock market pulled back from multi year highs set on Friday. Yields on Spanish and Italian bonds rose indicating that investors are again forcing southern European governments to pay more to borrow.
Also U.S. factory orders in December were below expectations.
The Toronto Stock Exchange’s S&P/TSX composite index fell 51.21 points, or 0.4 percent, to closed at 12,717.62.
The Dow Jones industrial average was down 129.71 points, or 0.93 percent, at 13,880.08.
The Standard & Poor’s 500 Index dropped 17.46 points, or 1.15 percent, to 1,495.71.
The Nasdaq Composite Index fell 47.93 points, or 1.51 percent, to finish at 3,131.17.
