Canola futures rose again Tuesday, supported by stronger soybeans and soy oil. And wheat jumped higher on declining U.S. winter wheat conditions.
Traders appear to feel that soybeans had fallen too much since the last USDA report March 10, considering that U.S. year end stocks are still expected to be very tight. Supply rationing through higher price is needed.
Canola also is benefiting from a slight uptick in rail service.
Wade Sobkowich, executive director of Western Grain Elevator Association, which includes the major grain handlers, told Reuters that there had been a “slight improvement” in rail service.
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U.S. grains: Corn, soybeans fall as rain expected to help U.S. crops
Chicago corn and soybean futures fell on Monday on forecasts for crop-friendly rain in U.S. grain belts this week.
CN rail said it had spotted an average 4,320 hopper cars per week in the past two weeks, up from an average of 2,964 per week in February.
Canola has technical strength with the price above the 100-day moving average.
All three major U.S. wheat contracts rose more than 2.25 percent on a weekly decline in the hard red winter wheat crop and jitters about Ukraine, where shots were fired between Russian and Ukrainian forces, although statements from Russian president Vladimir Putin today were seen as calming.
The crop in Kansas, the top wheat producer in the U.S., fell to 34 percent good to excellent from 37 percent the week before. There is dust blowing in Kansas today.
In Oklahoma, the good to excellent category was 18 percent, down from 22 percent the week before.
In Texas, the good to excellent ratings plunged to 13 percent, down from 28 percent the week before.
The forecast for this week has little to no rain for most of Kansas, Oklahoma and western Texas. It will also be colder than normal by the weekend, just like on the Canadian Prairies.
Wheat’s strength spilled over into corn. Bargain buying was also a feature in corn.
Earlier in the day, corn had been under pressure on news that despite the political tension in Ukraine, the country had loaded close to 700,000 tonnes of corn for export last week, up from 480,000 tonnes in the previous week.
Winnipeg ICE Futures Canada dollars per tonne
Canola May 2014 465.50 +2.30 +0.50%
Canola Jul 2014 474.60 +2.30 +0.49%
Canola Nov 2014 490.50 +1.90 +0.39%
Canola Jan 2015 497.40 +1.80 +0.36%
Canola Mar 2015 504.20 +1.60 +0.32%
Milling Wheat May 2014 220.00 +6.00 +2.80%
Milling Wheat Jul 2014 217.00 +6.00 +2.84%
Milling Wheat Oct 2014 218.00 +6.00 +2.83%
Durum Wheat May 2014 250.00 unch 0.00%
Durum Wheat Jul 2014 250.00 unch 0.00%
Durum Wheat Oct 2014 252.00 unch 0.00%
Barley May 2014 130.50 unch 0.00%
Barley Jul 2014 128.50 unch 0.00%
Barley Oct 2014 128.50 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans May 2014 1418.25 +26.5 +1.90%
Soybeans Jul 2014 1395.75 +20.5 +1.49%
Soybeans Aug 2014 1348.25 +11.75 +0.88%
Soybeans Sep 2014 1246.5 +12 +0.97%
Soybeans Nov 2014 1184.5 +8.75 +0.74%
Soybeans Jan 2015 1189 +9.25 +0.78%
Soybean Meal May 2014 455.8 +9.2 +2.06%
Soybean Meal Jul 2014 441.9 +7.3 +1.68%
Soybean Meal Aug 2014 421.3 +3.9 +0.93%
Soybean Oil May 2014 42.27 +0.38 +0.91%
Soybean Oil Jul 2014 42.44 +0.41 +0.98%
Soybean Oil Aug 2014 42.27 +0.36 +0.86%
Corn May 2014 486.25 +7.25 +1.51%
Corn Jul 2014 491 +7 +1.45%
Corn Sep 2014 488.75 +6.25 +1.30%
Corn Dec 2014 487.75 +5.75 +1.19%
Corn Mar 2015 495.75 +5.5 +1.12%
Oats May 2014 441.25 -16.25 -3.55%
Oats Jul 2014 383.75 -9.5 -2.42%
Oats Sep 2014 339.25 -5 -1.45%
Oats Dec 2014 328.5 -5.25 -1.57%
Oats Mar 2015 324.25 -3.75 -1.14%
Wheat May 2014 692.5 +18 +2.67%
Wheat Jul 2014 695.5 +17.25 +2.54%
Wheat Sep 2014 702.75 +16.5 +2.40%
Wheat Dec 2014 712 +16 +2.30%
Wheat Mar 2015 717.25 +15.75 +2.25%
Minneapolis
Spring Wheat May 2014 741.5 +17.25 +2.38%
Spring Wheat Jul 2014 734.5 +17 +2.37%
Spring Wheat Sep 2014 732.5 +16.75 +2.34%
Spring Wheat Dec 2014 740.5 +16.5 +2.28%
Spring Wheat Mar 2015 745 +16 +2.19%
Kansas City
KC HRW Wheat May 2014 763.25 +19.75 +2.66%
KC HRW Wheat Jul 2014 759.5 +21 +2.84%
KC HRW Wheat Sep 2014 761.75 +19.25 +2.59%
KC HRW Wheat Dec 2014 770.5 +18.5 +2.46%
KC HRW Wheat Mar 2015 772.25 +18.5 +2.45%
Light crude oil nearby futures in New York rose $1.62 at $99.70 US per barrel.
The Canadian dollar at noon was 90.20 cents US, down from 90.48 cents the previous trading day. The U.S. dollar at noon was $1.1086 Cdn.
Unofficial early tallies —
The Toronto Stock Exchange’s S&P/TSX composite index closed up 137.03 points, or 0.96 percent, at 14,368.92.
The Dow Jones industrial average rose 88.97 points or 0.55 percent, to close at 16,336.19.
The S&P 500 gained 13.42 points or 0.72 percent, to finish at 1,872.25.
The Nasdaq Composite added 53.364 points or 1.25 percent, to close unofficially at 4,333.313.
