The canola market continued to be comfortable with the prospect of a record crop and focused on Wednesday on tight stocks and declining soybean production prospects in South America.
May canola closed at $638.80, up $11.10.
November closed at $582.10, up $3.60.
Chicago soybeans are also up, but the rally in canola is impressive given that the loonie has rallied more than one cent since Monday. The nearby canola price reflects the rationing needed to protect very tight old crop stocks.
Frost is hitting Argentina’s soy regions earlier than normal and could be damaging late seeded crop.
Read Also
Pulse Weekly: Talk arises of India ending duty-free period
With harvest underway across the Canadian Prairies rumblings has been felt from the other side of the world, specifically in regards yellow peas. There have been recent media reports stating the Indian government is under growing domestic pressure to end its duty-free period on yellow pea imports.
There were unconfirmed rumours overnight that China was buying large quantities of U.S. soybeans.
The BSE case in a California dairy cow also does not appear to be hurting canola values. The California dairy sector is a major customer of Canadian canola meal.
Moisture is expected over large parts of the Canadian Prairies and U.S. plains and Midwest later this week. Frost in the Midwest is a threat Sunday, but the expected lows are not quite as low as forecast on Tuesday and damage is expected to be light.
Much improved rain this month in large parts of Europe are reviving crops that had been hurt by winter from and early season dryness.
Winnipeg (per tonne)
Canola May 12 $638.80, up $11.10 +1.77%
Canola Jul 12 $630.00, up $9.50 +1.53%
Canola Nov 12 $582.10, up $3.60 +0.62%
Canola Jan 13 $585.80, up $3.00 +0.51%
The previous trading day’s best basis in the par region was +$2.40 over the May contract, said ICE Futures Canada.
The 14-day relative strength index was 71.
Western Barley May 12 $242.00, unchanged
Western Barley Jul 12 $237.00, unchanged
Milling Wheat Oct 12 $253.00, unchanged
Milling Wheat Dec 12 $258.00, unchanged
Milling Wheat Mar 13 $268.00, unchanged
Durum Wheat Oct 12 $277.50, unchanged
Durum Wheat Dec 12 $282.00, unchanged
Durum Wheat Mar 13 $288.60, unchanged
Barley Oct 12 $183.00, down $0.80 -0.44%
Barley Dec 12 $186.70, down $0.80 -0.43%
Barley Mar 13 $188.20, down $0.80 -0.42%
Chicago (per bushel)
Soybeans May 12 $14.735, up 12.25 cents +0.84%
Soybeans Jul 12 $14.76, up 11.0 +0.75%
Soybeans Nov 12 $13.705, up 18.5 +1.37%
Corn May 12 $6.11, down 7.25 -1.17%
Corn Jul 12 $6.01, down 7.0 -1.15%
Corn Dec 12 $5.38, down 3.5 -0.65%
Oats May 12 $3.3925, down 1.0 -0.29%
Oats Jul 12 $3.4175, down 0.75 -0.22%
Oats Dec 12 $3.4675, down 1.25 -0.36%
Minneapolis (per bushel)
Spring Wheat May 12 $7.8275, down 1.75 cents -0.22%
Spring Wheat Jul 12 $7.86, up 0.75 +0.10%
Spring Wheat Sep 12 $7.815, up 0.75 +0.10%
Spring Wheat Dec 12 $7.8775, up 4.25 +0.54%
The nearby New York light sweet crude contract rose 57 cents to $104.12 US.
The Canadian dollar noon rate was $1.0154 US, up from $1.0118 the previous trading day. The U.S. dollar at noon was 98.48 Cdn.
Stock market indexes jumped higher, buoyed by Apple’s much stronger than expected quarterly profits.
Also, U.S. Federal Reserve chairman Ben Bernanke reassured markets that the central bank would do more if necessary to lift the economy.
The Toronto Stock Exchange Composite Index soared 130.96 points, or 1.1 percent, at 12,111.06.
The Dow Jones industrial average jumped 89.16 points, or 0.69 percent, to 13,090.72 at the close.
The Standard & Poor’s 500 Index rose 18.72 points, or 1.36 percent, to 1,390.69.
The Nasdaq Composite Index soared 68.03 points, or 2.30 percent, to 3,029.63, and scored its best daily percentage gain since Dec. 20.
