Canola futures bucked the negative trend in crop markets Wednesday, gaining slightly on a sharp drop in the Canadian dollar and commercial buying mostly linked to crusher demand.
There were unconfirmed rumours of fresh export business.
Prevented seeding continues to provide underlying support.
Corn was a drag on the market again today.
Nearby corn fell the 30-cent limit and dragged down oats and wheat. Corn has fallen for several days after posting record highs late last week. Traders worry that high prices will restrict demand. Ethanol refinery profit margins have disappeared because of the high corn price. Some livestock feeders are switching to cheaper feed wheat from corn.
Better weather in the U.S. Midwest also weighed on corn and soybeans, but soybeans ended steady to slightly stronger on short covering.
Investors’ worries were generally heightened by several economic reports showing weak U.S. industrial activity and the inability of European governments to stabilize the Greek debt issue. Investors shifted from riskier investments like commodities, energy and equities and moved into safe havens like U.S. treasury bills.
Winnipeg (per tonne)
Canola Jul 11 $585.50, up $2.80
Canola Nov 11 $588.70, up $3.30
Canola Jan 12 $595.60, up $3.50
Canola Mar 12 $602.00, up $3.60
The previous day’s best basis narrowed to $8 under the July contract according to ICE Futures Canada in Winnipeg.
The July contract’s 14-day Relative Strength Index was 50. 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 $13.68, unchanged
Soybeans Aug 11 $13.6475, up 2.25 cents
Soybeans Nov 11 $13.6675, up 3.0
Corn Jul 11 $7.2575, down 29.75
Corn Dec 11 $6.66, down 19.0
Oats Jul 11 $3.675, down 20.0
Oats Dec 11 $3.85, down 20.0
Minneapolis (per bushel)
Spring Wheat Jul 11 $9.37, down 31.5 cents
Spring Wheat Sep 11 $8.96, down 22.0
Spring Wheat Dec 11 $8.9525, down 19.75
Light crude oil nearby futures in New York fell $4.56 to $94.81 US per barrel on U.S. dollar strength and worries about the effect the slowing U.S. economy will have on demand.
The Canadian dollar at noon was $1.0225 US, down from $1.0324 the previous trading day. The U.S. dollar at noon was 97.80 cents Cdn.
The U.S. dollar gained against other currencies on concerns about Europe’s economy as governments tried to deal with the Greek debt problem. A strong increase in the U.S. consumer price index for May also supported the greenback.
The Toronto Stock Exchange composite index closed down 125.79 points, or 0.96 percent, at 12,972.03.
The Standard and Poor’s 500 index lost 22.45 points, or 1.74 percent, to 1,265.42.
