Canola prices held almost steady despite a record crop that was at the top end of trade expectations.
The January contract closed at $503.20 per tonne, up 20 cents.
There was lingering support from confirmation yesterday of new shipments to China and that offset the bearish Statistics Canada November crop production report released today.
Canola production hit a record 14.17 million tonnes, smashing the previous record of 12.89 million tonnes in 2009, and at the top end of a range of trade expectations.
Canola exports and crush are running ahead of last year so demand is good but the large production number might mean larger than expected year end stocks.
Barley prices will be supported by a smaller than expected crop. Statscan lowered its estimate for barley production to 7.756 million tonnes from 7.9 million tonnes, falling below the average trade estimate of eight million tonnes.
Total wheat production was up nine percent over last year to 25.26 million tonnes. The trade, on average, had expected 24.5 million tonnes. Statscan’s estimate earlier this fall was 24.2 million tonnes.
Minneapolis spring wheat futures were little changed.
Statscan said farmers harvested 4.17 million tonnes of durum, up from its previous estimate and at the top end of trade estimates.
Oat production was three million tonnes, matching expectations.
Average yields for wheat were record high. Spring wheat on average yielded 42.7 bushels per acre and durum was 39 bu. per acre. Canola yields averaged 33.8 bushels per acre, the biggest in two years.
The Statscan survey of 28,600 farmers was conducted between Oct. 24 and Nov. 10.
• U.S. crop markets rose slightly on bargain buying.
• The European wheat market was pressured by the success of Argentina selling 180,000 tonnes to Egypt through a wheat tender today. Cheap Argentine wheat is now adding to the surplus of low-cost Black Sea origin wheat.
• Markets remain on edge over the European debt crisis. A critical meeting of European leaders begins Thursday where closer economic integration will be discussed.
• Former MF Global chief Jon Corzine is to appear before a congressional hearing on Thursday, Congress is holding hearings to examine the firm’s bankruptcy and the search for up to $1.2 billion in missing customer money. The Senate agriculture committee on Tuesday also voted to subpoena Corzine to testify before its Dec. 13 hearing.
Winnipeg (per tonne)
Canola Jan 12 $503.20, up $0.20 (+0.04%)
Canola Mar 12 $502.80, up $0.10 (+0.02%)
Canola May 12 $503.80, down $0.10 (-0.02%)
Canola Jul 12 $506.10, up $0.10 (+0.02%)
The basis was not available.
The January contract’s 14-day Relative Strength Index was 36.
Western Barley Dec 11 $217.00, unchanged
Chicago (per bushel)
Soybeans Jan 12 $11.29.5, up 3.25 (+0.29%)
Soybeans Mar 12 $11.39.5, up 3.0 (+0.26%)
Soybeans May 12 $11.49.75, up 2.75 (+0.24%)
Corn Dec 11 $5.85-2, up 5.0 (+0.86%)
Corn Mar 12 $5.96-4, up 5.5 (+0.93%)
Oats Dec 11 $3.00, unchanged
Oats Mar 12 $3.03-6, down 3.25 (-1.06%)
Minneapolis (per bushel)
Spring Wheat Dec 11 $8.5425, up 6-0 (+0.71%)
Spring Wheat Mar 12 $8.32, up 1-2 (+0.15%)
Spring Wheat May 12 $8.1225, up 2-6 (+0.34%)
Nearby light crude oil in New York rose 29 cents to $101.28 per barrel.
The Canadian dollar at noon was 98.84 cents US, up from 98.61 the previous trading day. The U.S. dollar at noon was $1.0117 Cdn.
The Bank of Canada today left its key interest rate at one percent and darkened its outlook for the European economy.
The Toronto Stock Exchange composite closed down 38.08 points, or 0.31 percent, at 12,081.25.
The Standard & Poor’s 500 Index was up 1.39 points, or 0.11 percent, to 1,258.47.
