Canola edged higher on Wednesday along with soybeans, but cereals fell.
Good demand and slow farmer selling supported canola futures.
Canola exports are running about 14 percent ahead of last year at this point and the domestic crush is running 2.6 percent ahead of last year.
Developing dryness in Brazil also supported Oilseeds.
Rainfall in November ran between about 50 to 75 percent of normal in several soybean producing states and the first week of December also had been dry.
Parts of Argentina are also becoming dry. The weather is warming as the Southern Hemisphere summer approaches.
• With crude oil prices at more than $100 per barrel, there is strong demand for biodiesel.
• Heavy rains in Malaysia are delaying palm deliveries.
Gains were limited by continuing concern about Europe’s debt crisis. EU leaders gather tomorrow to discuss options.
• Traders await the USDA production, demand and year end supply reports out on Friday.
The trade expects a slight reduction in U.S. corn ending stocks because of rising feed use and a delayed end to the harvest. Soybean stocks might rise because of slow exports.
• Wheat and corn drifted lower on slow U.S. export sales. One of Argentina’s grain exchanged increased its estimate of the wheat crop to 12.8 million tonnes, up from 12.4 million previously. Argentina sold bargain priced wheat to Egypt in a recent tender, undercutting Black Sea region wheat.
Winnipeg (per tonne)
Canola Jan 12 $507.00, up $3.80 (+0.76%)
Canola Mar 12 $506.50, up $3.70 (+0.74%)
Canola May 12 $509.10, up $5.30 (+1.05%)
Canola Jul 12 $510.90, up $4.80 (+0.95%)
The previous day’s best basis was $5.27 under the January contract, according to ICE Canada in Winnipeg.
The January contract’s 14-day Relative Strength Index was 42.
Western Barley Dec 11 $217.00, unchanged
Chicago (per bushel)
Soybeans Jan 12 $11.31, up 1.5 cents (+0.13%)
Soybeans Mar 12 $11.41, up 1.5 (+0.13%)
Soybeans May 12 $11.5125, up 1.5 (+0.13%)
Corn Dec 11 $5.8225, down 3.0 (-0.51%)
Corn Mar 12 $5.9275, down 3.75 (-0.63%)
Oats Dec 11 $2.9425, down 5.75 (-1.92%)
Oats Mar 12 $2.98, down 5.75 (-1.89%)
Minneapolis (per bushel)
Spring Wheat Dec 11 $8.4675, down 7.5 cents (-0.88%)
Spring Wheat Mar 12 $8.2325, down 8.75 (-1.05%)
Spring Wheat May 12 $8.0425, down 8.0 (-0.98%)
Nearby light crude oil in New York fell 79 cents, or 0.78 percent, to settle at $100.49 a barrel.
The Canadian dollar at noon was 98.96 cents US, up from 98.84 the previous trading day. The U.S. dollar at noon was $1.0105 Cdn.
The Toronto Stock Exchange composite unofficially closed up 67.48 points, or 0.56 pct, at 12,148.73.
The Standard & Poor’s 500 Index rose 2.55 points, or 0.20 percent, to 1,261.02.
