ICE Canada canola futures rose on Wednesday, supported by stronger soybean oil values and a weaker Canadian dollar, Reuters reported.
Crushers were buying, but funds were on the sidelines.
Most-active March canola tacked on 60 cents to $449.20 per tonne. The gain for March lagged deferred months, as modest farmer deliveries led to commercial hedging, an analyst said.
ICE reported no deliveries of January canola. The contract expires on Jan. 14.
Malaysian February palm oil added 1.8 percent.
NYSE Liffe Paris February rapeseed rose 0.5 percent.
U.S. corn futures fell 2.2 percent on Wednesday, dropping below the key $4 a bushel level on pressure from an industry report that showed demand from the ethanol sector was waning.
Wheat futures also declined on concerns about a strong dollar hitting export demand for U.S. offerings amid an ample global supply base. Soybeans ended close to unchanged after trading in negative territory for most of the day.
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Traders noted investment funds actively selling corn and buying soybeans ahead of the close as part of their January rebalancing. The late moves pushed corn to session lows near the end of trading.
Corn futures have fallen in six of the last seven trading days, shedding 4.5 percent during that time as falling crude oil and gasoline prices have cut into demand for corn-based fuel.
“We have seen the ethanol margins go into the red,” said Mark Schultz, chief analyst at Northstar Commodity Investment Co. “That signals that the (second) biggest user of corn is going to see a slowdown.”
The U.S. Energy Information Administration said on Wednesday that ethanol stockpiles surged 751,000 barrels to 18.85 million barrels in the week to Jan. 2, the largest in nearly two years. The report pushed ethanol futures to their lowest since June 2010.
CBOT March soft red winter wheat futures were 12-1/4 cents lower at $5.79-1/2 a bushel.
“We are priced out of the world market,” said Bill Gentry, broker at Risk Management Commodities.
Stiff competition for U.S. wheat from cheaper suppliers in Europe added to the bearish sentiment hanging over wheat.
Traders also noted that some Midwest growing areas received snow this week that will help protect the dormant U.S. crop from sub-zero temperatures that engulfed the region.
Soybean futures ended close to unchanged on Wednesday, with a late round of buying pulling prices from the negative territory they traded in for much of the session.Traders said they expected some fund buying in soybeans as part of investment rebalancing that is typical for January.Some concerns about dry weather limiting crop production in Argentina lent support to prices, but pressure from profit-taking after two days of gains hung over the market throughout the session.
Soymeal futures weakened, following a crumbling cash market basis.Soyoil firmed as the benchmark CBOT March soyoil futures contract pushed through key resistance at its 100-day moving average.Spread unwinding also contributed to the weakness in soymeal and the strength in soyoil, traders said.
Analysts were expecting a U.S. Department of Agriculture report early on Thursday to show weekly export sales of soybeans in a range from 500,000 to 700,000 tonnes. A week ago, soybean export sales totaled 611,019 tonnes.U.S. farmers plan to boost soybean acreage by 4.9 percent to 88.3 million acres, according to a survey by Farm Futures magazine.
Light crude oil nearby futures in New York rose 72 cents to US$48.65 per barrel.
The Canadian dollar at noon was US84.38 cents, down from 84.72 cents the previous trading day. The U.S. dollar at noon was C$1.1851.
Stock markets rallied as the rout in crude oil prices stalled and on a report showing stronger than expected U.S. private sector job creation. A government jobs report for December comes out Friday.
Also, minutes from the most recent Federal Reserve meeting reassured investors the bank was in no hurry to start raising interest rates.
The Toronto Stock Exchange’s S&P/TSX composite index edged up 38.23 points, or 0.27 percent, at 14,285.
The Dow Jones industrial average rose 212.88 points, or 1.23 percent, to 17,584.52.
The S&P 500 added 23.29 points, or 1.16 percent, to 2,025.9.
The Nasdaq Composite jumped 57.73 points, or 1.26 percent, to 4,650.47.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jan 2015 463.20 +0.80 +0.17%
Canola Mar 2015 449.20 +0.60 +0.13%
Canola May 2015 445.80 +2.70 +0.61%
Canola Jul 2015 443.70 +2.90 +0.66%
Canola Nov 2015 433.20 +2.10 +0.49%
Milling Wheat Mar 2015 224.00 -3.00 -1.32%
Milling Wheat May 2015 227.00 -3.00 -1.30%
Milling Wheat Jul 2015 229.00 -3.00 -1.29%
Durum Wheat Mar 2015 365.00 unch 0.00%
Durum Wheat May 2015 355.00 unch 0.00%
Durum Wheat Jul 2015 345.00 unch 0.00%
Barley Mar 2015 177.00 unch 0.00%
Barley May 2015 179.00 unch 0.00%
Barley Jul 2015 181.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jan 2015 1052.75 +1.75 +0.17%
Soybeans Mar 2015 1056.25 +0.5 +0.05%
Soybeans May 2015 1061.5 unch 0.00%
Soybeans Jul 2015 1065.75 -0.25 -0.02%
Soybeans Aug 2015 1062.75 -0.75 -0.07%
Soybeans Sep 2015 1041 -2.5 -0.24%
Soybean Meal Jan 2015 368.5 -2.3 -0.62%
Soybean Meal Mar 2015 354 -1.1 -0.31%
Soybean Meal May 2015 348 -0.7 -0.20%
Soybean Oil Jan 2015 32.98 +0.29 +0.89%
Soybean Oil Mar 2015 33.16 +0.29 +0.88%
Soybean Oil May 2015 33.32 +0.27 +0.82%
Corn Mar 2015 396.25 -8.75 -2.16%
Corn May 2015 404.75 -8.75 -2.12%
Corn Jul 2015 411.5 -8.75 -2.08%
Corn Sep 2015 414.5 -8.25 -1.95%
Corn Dec 2015 420.25 -8 -1.87%
Oats Mar 2015 301.75 -2.75 -0.90%
Oats May 2015 304 -2 -0.65%
Oats Jul 2015 307.75 -1.5 -0.49%
Oats Sep 2015 306 -1.5 -0.49%
Oats Dec 2015 306 -0.75 -0.24%
Wheat Mar 2015 579.5 -12.25 -2.07%
Wheat May 2015 584 -12 -2.01%
Wheat Jul 2015 587.75 -11 -1.84%
Wheat Sep 2015 594.75 -10.5 -1.73%
Wheat Dec 2015 605 -10.5 -1.71%
Minneapolis
Spring Wheat Mar 2015 615.75 -9.75 -1.56%
Spring Wheat May 2015 622.25 -9.5 -1.50%
Spring Wheat Jul 2015 629.25 -9.5 -1.49%
Spring Wheat Sep 2015 634.75 -9.25 -1.44%
Spring Wheat Dec 2015 644 -9.25 -1.42%
Kansas City
Hard Red Wheat Mar 2015 620 -11.25 -1.78%
Hard Red Wheat May 2015 623.5 -11.75 -1.85%
Hard Red Wheat Jul 2015 625 -12 -1.88%
Hard Red Wheat Sep 2015 635.25 -11.75 -1.82%
Hard Red Wheat Dec 2015 649 -11 -1.67%
