By D’Arce McMillan
Markets Editor
Twitter @ darcemcmillan
American crop futures bounced back from Wednesday’s losses and canola posted its third consecutive gain on Thursday.
Although today’s gains were mostly short covering and bargain buying, some of the rise might be attributed to money fleeing the volatility of the stock market.
The expected huge size of the American harvest limits the potential for gains, but there is also support from the slow pace of the American harvest, due to rain interruptions and the slow pace of soybean seeding in central Brazil.
Read Also
U.S. grains: Soybean futures set two-week high on US weather worry, soyoil rally
Chicago Board of Trade soybean futures touched a two-week high on Friday on worries that heat may threaten U.S. crops and expectations that the country’s biofuel policy would boost demand for soyoil, analysts said.
The long term outlook is for drier weather in the U.S. Midwest.
Canola edged only slightly higher today, with November closing at $412.90, an increase of $3.30 per tonne or 0.81 percent. However, that is up about $25 per tonne from the low of $388 hit on Sept. 22.
Saskatchewan Agriculture said today about 89 percent of the overall crop is now combined. Eight percent is swathed or ready to be straight-cut. That is about in line with the five-year average for this time of year.
Wheat posted the strongest gains today with all three exchanges rising a little more than two percent on the December contracts.
While it is too dry to seed in Brazil’s central soybean region, wet weather in southern Brazil is delaying the harvest of that country’s wheat crop and hurting its quality. Brazil’s crop was expected to be larger than normal, limiting the amount it imports, but if the quality situation deteriorates, imports might be larger than expected.
Argentina provides most of Brazil’s needs. The harvest in Argentina is expected to up a little from last year.
Also in wheat news, snow in the past week in Siberia has interfered with the tail end of the harvest there. The region produces about 19 percent of Russia’s wheat crop
Light crude oil nearby futures in New York rose 92 cents at $82.70 US per barrel.
The Canadian dollar at noon was 88.76 cents US, up from 88.58 cents the previous trading day. The U.S. dollar at noon was $1.1266 Cdn.
Stock markets initially fell hard but then recouped much of the decline on positive U.S. economic reports. The number of Americans filing new claims for jobless benefits fell to a 14-year low last week and U.S. industrial output rose sharply in September.
Stock markets had fallen hard in recent days on worries that weak overseas economies would stall out the American revival and on rapidly falling crude oil.
The U.S. news and stronger crude oil prices helped the Toronto Stock Exchange’s S&P/TSX composite index to close up 183.09 points, or 1.32 percent, at 14,052.97.
The Dow Jones industrial average fell 24.95 points, or 0.15 percent, to 16,116.79, the S&P 500 gained 0.26 points, or 0.01 percent, to 1,862.75 and the Nasdaq Composite added 2.07 points, or 0.05 percent, to 4,217.39.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2014 412.90 +3.30 +0.81%
Canola Jan 2015 416.40 +1.60 +0.39%
Canola Mar 2015 422.40 +0.90 +0.21%
Canola May 2015 426.00 -0.30 -0.07%
Canola Jul 2015 427.90 -1.00 -0.23%
Milling Wheat Dec 2014 227.00 +10.00 +4.61%
Milling Wheat Mar 2015 233.00 +7.00 +3.10%
Milling Wheat May 2015 237.00 +8.00 +3.49%
Durum Wheat Dec 2014 356.50 unch 0.00%
Durum Wheat Mar 2015 357.50 unch 0.00%
Durum Wheat May 2015 357.50 unch 0.00%
Barley Dec 2014 119.00 unch 0.00%
Barley Mar 2015 122.00 unch 0.00%
Barley May 2015 122.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Nov 2014 966.5 +14 +1.47%
Soybeans Jan 2015 974.25 +13.25 +1.38%
Soybeans Mar 2015 981.75 +12 +1.24%
Soybeans May 2015 990.5 +12 +1.23%
Soybeans Jul 2015 996.75 +11.25 +1.14%
Soybeans Aug 2015 998.25 +10.75 +1.09%
Soybean Meal Dec 2014 334.6 +7.3 +2.23%
Soybean Meal Jan 2015 328.6 +6.2 +1.92%
Soybean Meal Mar 2015 322.2 +4.5 +1.42%
Soybean Oil Dec 2014 32.36 +0.38 +1.19%
Soybean Oil Jan 2015 32.62 +0.36 +1.12%
Soybean Oil Mar 2015 32.85 +0.33 +1.01%
Corn Dec 2014 352.25 +4.75 +1.37%
Corn Mar 2015 365.25 +4.75 +1.32%
Corn May 2015 374.25 +4.75 +1.29%
Corn Jul 2015 381.5 +4.75 +1.26%
Corn Sep 2015 388.5 +4.5 +1.17%
Oats Dec 2014 347 +3.5 +1.02%
Oats Mar 2015 335 +5.5 +1.67%
Oats May 2015 328.5 +5 +1.55%
Oats Jul 2015 322 +4.5 +1.42%
Oats Sep 2015 325 +4.5 +1.40%
Wheat Dec 2014 517 +11 +2.17%
Wheat Mar 2015 528.75 +10.75 +2.08%
Wheat May 2015 535.5 +10.5 +2.00%
Wheat Jul 2015 542.75 +10.5 +1.97%
Wheat Sep 2015 552.25 +10 +1.84%
Minneapolis
Spring Wheat Dec 2014 576.5 +11.75 +2.08%
Spring Wheat Mar 2015 582.75 +10 +1.75%
Spring Wheat May 2015 591.5 +9.5 +1.63%
Spring Wheat Jul 2015 601.25 +9.25 +1.56%
Spring Wheat Sep 2015 610.25 +9 +1.50%
Kansas City
Hard Red Wheat Dec 2014 605 +13 +2.20%
Hard Red Wheat Mar 2015 604.25 +11.5 +1.94%
Hard Red Wheat May 2015 601 +10 +1.69%
Hard Red Wheat Jul 2015 592 +9 +1.54%
Hard Red Wheat Sep 2015 602.75 +8.5 +1.43%
