Canola rises on stronger veg oil, hard wheat gains

Canola shook off losses in Chicago crop markets and rose Tuesday on speculative and commercial buying, stronger soy oil futures and a weaker loonie.

November canola closed at $483 per tonne, up $4.40.

Malaysian palm oil rose on a report that showed palm stocks and output were lower than expected and that supported soy oil values

Hard spring and winter wheat rose again even though Chicago was pulled lower by the falling corn and soybean markets.

Concerns about excess rain causing reduced winter wheat seeding in Ukraine and Russia are supporting the wheat market.

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Although wheat futures are stronger, wheat basis in Canada is sharply widening as elevators are plugged with wheat. Producer wheat deliveries to the eighth week of the crop year total 3.39 million tonnes. Last year the total at the same time was 2.86 million tonnes and the year before was 2.36 million tonnes.

Worries about how the deadlocked U.S. Congress will agree to address the looming debt ceiling issue weighed on U.S. markets.

Also harvest progress kept downward pressure on the market. After rain delays U.S. farmers’ combines are rolling again. Yields continue to be better than expected.

The U.S. Department of Agriculture will not put out its domestic and international crop supply and demand reports that were scheduled for Friday. The lack of USDA reporting is putting the grain market into a fog and some traders are stepping back leading to lighter trade.

But Darin Newsom of DTN notes that the lack of USDA reports provides the opportunity to look at other ways to judge supply and demand. The price spreads between contract months show whether grain users want grain now or will pay farmers to store it.

Usually deferred contracts have a higher price than the nearby because the market is willing to pay for storage until the grain is needed. However last year oilseed contracts tended to have inverses, that is the nearby was worth more than the deferred because users wanted canola and soybeans right away.

This summer the inversion in canola ended as it because clear there would be a big crop. The soybean inversion also disappeared for a while, but has returned with the November at a slight premium to January.

Winnipeg ICE Futures Canada dollars per tonne

Canola Nov 13 483.00 +4.40 +0.92%

Canola Jan 14 492.70 +4.90 +1.00%

Canola Mar 14 500.20 +5.30 +1.07%

Canola May 14 506.30 +5.40 +1.08%

Canola Jul 14 511.30 +5.70 +1.13%

Milling Wheat Oct 13 237.00 unch 0.00%

Milling Wheat Dec 13 241.00 +1.00 +0.42%

Milling Wheat Mar 14 247.00 +1.00 +0.41%

Durum Wheat Oct 13 243.00 unch 0.00%

Durum Wheat Dec 13 247.00 unch 0.00%

Durum Wheat Mar 14 253.00 unch 0.00%

Barley Oct 13 149.00 +0.50 +0.34%

Barley Dec 13 152.00 +0.50 +0.33%

Barley Mar 14 154.00 +0.50 +0.33%

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

Chicago

Soybeans Nov 13 1288.75 -7.75 -0.60%

Soybeans Jan 14 1287.75 -9.25 -0.71%

Soybeans Mar 14 1275.75 -8.50 -0.66%

Soybeans May 14 1256.25 -8 -0.63%

Soybeans Jul 14 1252.5 -8.25 -0.65%

Soybean Meal Oct 13 428.7 -5.0 -1.15%

Soybean Meal Dec 13 414.9 -5.8 -1.38%

Soybean Meal Jan 14 411 -6.0 -1.44%

Soybean Oil Oct 13 40.2 +0.55 +1.39%

Soybean Oil Dec 13 40.43 +0.53 +1.33%

Soybean Oil Jan 14 40.75 +0.53 +1.32%

Corn Dec 13 441.75 -7.50 -1.67%

Corn Mar 14 454.5 -7.25 -1.57%

Corn May 14 462.75 -7 -1.49%

Corn Jul 14 470 -7 -1.47%

Corn Sep 14 475.25 -7.50 -1.55%

Oats Dec 13 316.75 -0.75 -0.24%

Oats Mar 14 303 -2.75 -0.90%

Oats May 14 300.5 -4.25 -1.39%

Oats Jul 14 294.5 -5 -1.67%

Oats Sep 14 295.25 -9.25 -3.04%

Wheat Dec 13 693.5 -1.25 -0.18%

Wheat Mar 14 703.5 -1 -0.14%

Wheat May 14 708.5 -1.25 -0.18%

Wheat Jul 14 700.25 -0.75 -0.11%

Wheat Sep 14 705.25 -1 -0.14%

Minneapolis

Spring Wheat Dec 13 753.25 +3 +0.40%

Spring Wheat Mar 14 762.25 +2.75 +0.36%

Spring Wheat May 14 766.25 +2.75 +0.36%

Spring Wheat Jul 14 767 +1 +0.13%

Spring Wheat Sep 14 767.5 -0.50 -0.07%

Kansas City

KCBT Red Wheat Dec 13 760.5 +4 +0.53%

KCBT Red Wheat Mar 14 759 +3 +0.40%

KCBT Red Wheat May 14 758.25 +2.50 +0.33%

KCBT Red Wheat Jul 14 742 +2.25 +0.30%

KCBT Red Wheat Sep 14 750 +1.50 +0.20%

Light crude oil nearby futures in New York rose 46 cents at $103.49 US per barrel.

The Canadian dollar at noon was 96.80 cents US, down from 97.03 cents the previous trading day. The U.S. dollar at noon was $1.0331 Cdn.

In unofficial tallies —

The Toronto Stock Exchange’s S&P/TSX composite index closed down 95.84 points, or 0.75 percent, at 12,692.41.

The Dow Jones industrial average was down 158.75 points, or 1.06 percent, at 14,777.49.

The Standard & Poor’s 500 Index was down 20.61 points, or 1.23 percent, at 1,655.51.

The Nasdaq Composite Index was down 75.54 points, or 2.00 percent, at 3,694.83.

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