Canola futures were mixed Tuesday with old crop down, but new crop higher on continued seeding difficulties in the eastern Prairies.
Russia’s return to the wheat export market July 1 pushed wheat lower, but spring wheat futures fell less than winter wheat because of concerns about seeding delays in the eastern Canadian Prairies and North Dakota.
After markets closed the USDA reported that 68 percent of U.S. spring wheat had been planted, compared to the five-year average of 95 percent. Only 55 percent of North Dakota’s wheat crop was seeded.
In canola, 40 percent was seeded in the state, down from 90 percent.
The situation was worse for durum in the state, where only 17 percent was planted, down from the normal 86 percent.
Also, traders had expected 89 percent of corn across the U.S. to be seeded, but the number came in at 86 percent.
Traders had expected Russia would end export restrictions, but some thought they’d wait until after the harvest was in. The early removal of the ban could mean Russia might be able to export as much as 13 million tonnes of wheat. The U.S. Department of Agriculture had forecast it to export 10 million tonnes.
Wheat was also pressured by rain in Western Europe, which has been suffering drought.
Oil World has updated its forecast for Germany’s rapeseed crop. It now spots it at 4.65 million, down from 5.7 million last year and said it could slip to 4.4 million if the drought continues.
Oil World puts the European rapeseed crop at 19.2 million tonnes, down 1.4 million from last year.
Dow Jones reported the Pakistan recently bought two cargos of Canadian canola totaling 100,000 tonnes at about $678 basis cost and freight. One ship sailed this month and the other will go in June.
European officials met in Vienna to sketch out options for a second bailout package for debt-burdened Greece.
Stronger crude oil prices supported grains.
Winnipeg (per tonne)
Canola Jul 11 $589.50, down $1.30
Canola Nov 11 $594.10, up 50 cents
Canola Jan 12 $602.20, up $1.80
Canola Mar 12 $608.50, up $4.20
The previous day’s best basis was $18 under the July contract according to ICE Futures Canada in Winnipeg.
The July contract’s 14-day Relative Strength Index was 59. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market
Western Barley Jul 11 $205, unchanged
Chicago (per bushel)
Soybeans Jul 11 $13.76, down 3.75 cents
Soybeans Aug 11 $13.72, down 3.75
Soybeans Nov 11 $13.635, down 5.0
Corn Jul 11 $7.475, down 11.0
Corn Dec 11 $6.73, down 11.0
Oats Jul 11 $3.86, up 3.25
Oats Dec 11 $4.0125, up 3.5
Minneapolis (per bushel)
Spring Wheat Jul 11 $10.25, down 31.25 cents
Spring Wheat Sep 11 $9.8775, down 31.0
Spring Wheat Dec 11 $9.885, down 30.75
Light crude oil nearby futures in New York rose $2.11 to $102.70 US per barrel.
The Canadian dollar at noon was $1.0322 US, up from $1.0241 the previous trading day. The U.S. dollar at noon was 96.88 cents Cdn.
The Toronto Stock Exchange composite index closed down 26.78 points, or 0.19 percent, at 13,802.88.
The Standard and Poor’s 500 index rose 14.08 points, or 1.06 percent, to close at 1,3345.18.
