Canola rebounds

Well, what a relief that was! Canola prices, along with virtually every other crop with a futures contract, rebounded strongly from Tuesday’s rout, ending solidly in the green and alleviating fears that the drought market rally had ended and was collapsing.

Winnipeg ICE canola futures ended up $9.50 per tonne to $616.70 for the November contact and up $10.50 to $618.90 for the January contract. That takes canola to $13.98 on the Nov and $14.03 on the Jan.

Unlike yesterday’s sea of red ink and catastrophic slumps in soybean, soy oil and wheat, today saw markets move up sharply and confidently. The limit-down moves of Tuesday were followed by initial losses in overnight trading for soybeans, but flatter times for Chicago wheat and corn, and then gains as the day wore on. The live trading session added to the rising market and soybeans closed near the high of its trading range for the day.

Read Also

Canada announces steel tariffs on some trade partners

Prime Minister Mark Carney on Wednesday said Canada will introduce a tariff rate quota for countries with which it has free trade agreements, excluding the United States, to protect the domestic steel industry.

Corn ended higher but only in the middle of its trading range for the day. However, corn had begun recovering late yesterday afternoon and continued the recovery through Wednesday.

Chicago wheat also began recovering by late afternoon Tuesday and continued to rally through Wednesday, ending like soybeans near the top of its range.

Canola shared soybeans’ slide Tuesday, but was stabilizing by late Tuesday and on Wednesday was steady rallying.

Prices, however, sharply sold off at the close.

Canola is being steadily sold to offshore buyers, but a big crop appears to be coming, so the supply and demand sides of the ledger are in rough balance, leaving canola to mostly follow developments in the soy complex.

The recovery in the ag markets was partially reflected in the world equity markets, although rather than having a big turnaround day stock markets limped and stumbled through the day, with alternating positive and negative news hitting investors.

Apple and some other companies failed to hit earning expectations. Yet other companies beat expectations.

U.S. new homes sales were worse than expected, and the U.K. economy showed signs of falling back into recession, but generally markets were tired of falling for the past few days and didn’t keep hammering down the indices Wednesday.

At the Olympics, the North Korean women’s soccer team walked off the field before the beginning of their game with Colombia after a South Korean flag was absurdly used instead of the Communist north’s red star themed banner. Hopefully nuclear war will not result, but you never know with the hermit kingdom.

Winnipeg (per tonne)

Canola Nov 12 $616.70, up $9.50 +1.56%

Canola Jan 13 $618.90, up $10.50 +1.73%

Canola Mar 13 $619.70, up $10.60 +1.74%

Canola May 13 $613.50, up $8.50 +1.40%

Western Barley Oct 12 $257.00, unchanged

Western Barley Dec 12 $262.00, unchanged

Milling Wheat Oct 12 $330.00, down $4.50 -1.35%

Milling Wheat Dec 12 $337.50, down $4.50 -1.32%

Milling Wheat Mar 13 $347.50, down $4.50 -1.28%

Durum Wheat Oct 12 $330.40, up $3.40 +1.04%

Durum Wheat Dec 12 $334.90, up $3.40 +1.03%