WINNIPEG (Reuters) — ICE Canada canola rose on Wednesday, lifted by crusher and exporter buying.
A weaker Canadian dollar is stimulating demand, a trader said. The lower loonie improves margins for crushers and makes exported canola more attractive in world trade.
The most-active March canola gained $1.80 at $486.10 per tonne.
ICE reported 1,039 January canola deliveries. Contract expires Jan. 14.
The March-May spread traded 3,304 times.
Chicago March soybeans rose on bargain-buying and Brazilian crop concerns.
Malaysian March crude palm oil and NYSE Liffe Paris February rapeseed slipped.
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The Canadian dollar was trading at $1.4076, or 71.04 US cents, at 1:20 p.m. CST, which was lower than the Bank of Canada’s official close of $1.3989, or 71.48 US cents.
Meanwhile, U.S. grain and soybean futures rebounded from early-session losses in a technical short-covering bounce as investors squared positions ahead of a U.S. Department of Agriculture crop report due early next week.
Corn and wheat futures posted fresh contract lows in nearly all months and soybeans hit a 6 ½ week low before recovering.
“We’re seeing some short covering now that, technically, support levels have held, and we’ve got a major report that’s coming out in less than a week,” said Steve Georg, vice-president of consultancy Allendale Inc.
Chicago Board of Trade March soybeans rose three cents, or 0.4 percent, to $8.60 1/4 a bushel by 11:30 a.m. after earlier falling as low as $8.52 a bushel. CBOT March corn was up .5 cent at $3.53 1/2 a bu. after posting a contract low of $3.50-1/4 earlier in the day.
Corn held above a key technical support level of $3.50 a bu. and soybeans held above support at $8.50 a bu., Georgy said.
The USDA is scheduled to release its annual crop production report Jan. 12, and the market is prone to bouts of short covering by funds, which are currently holding very large short positions in grains, he added.
Expectations for bumper South American crops restricted gains in corn and soybeans, along with declines in key markets, including crude oil.
Private analytics firm Informa Economics on Wednesday raised its estimate of Argentina’s 2015-16 corn production but left its forecast of the country’s soybean crop unchanged, trade sources said. Informa also left unchanged its Brazilian corn and soy production forecasts.
CBOT March wheat gained three cents, or .7 percent, to $4.64 1/4 a bu. after hitting an earlier low of $4.56 3/4, within 3/4 cent of its contract low. All other traded months posted contract lows.
Concerns that adverse weather in the hard and soft red winter wheat belts of the United States could reduce yields underpinned wheat futures, although gains were tempered by slow export demand for U.S. supplies.
“The wheat weather is still problematic. The soft red wheat hasn’t fully priced in the damage done last week by the floods and there’s a drier pattern in the hard red wheat belt of the southern Plains in the most recent weather models,” said Mike Zuzolo, president of Global Commodity Analytics.
Light crude oil nearby futures in New York were down $2 to US$33.97 per barrel.
The Canadian dollar at noon was US71.00 cents, down from 71.46 cents the previous trading day. The U.S. dollar at noon was C$1.4084.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2016 486.10 +1.80 +0.37%
Canola May 2016 493.60 +2.60 +0.53%
Canola Jul 2016 497.20 +3.70 +0.75%
Canola Nov 2016 493.40 +4.10 +0.84%
Milling Wheat Mar 2016 235.00 +5.00 +2.17%
Milling Wheat May 2016 239.00 +5.00 +2.14%
Milling Wheat Jul 2016 244.00 +5.00 +2.09%
Durum Wheat Mar 2016 322.00 +6.00 +1.90%
Durum Wheat May 2016 330.00 +6.00 +1.85%
Durum Wheat Jul 2016 330.00 +6.00 +1.85%
Barley Mar 2016 182.00 unch 0.00%
Barley May 2016 188.00 unch 0.00%
Barley Jul 2016 190.00 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 2016 875.75 +8 +0.92%
Soybeans Mar 2016 864.75 +7.5 +0.87%
Soybeans May 2016 867.5 +5.75 +0.67%
Soybeans Jul 2016 874.5 +5.25 +0.60%
Soybeans Aug 2016 877 +5.25 +0.60%
Soybeans Sep 2016 876 +4.25 +0.49%
Soybean Meal Jan 2016 266.9 +1.6 +0.60%
Soybean Meal Mar 2016 268.7 +2.4 +0.90%
Soybean Meal May 2016 271.2 +2.1 +0.78%
Soybean Oil Jan 2016 29.59 -0.04 -0.13%
Soybean Oil Mar 2016 29.78 -0.03 -0.10%
Soybean Oil May 2016 30.01 -0.02 -0.07%
Corn Mar 2016 353.25 +0.25 +0.07%
Corn May 2016 358.5 unch 0.00%
Corn Jul 2016 364.5 -0.25 -0.07%
Corn Sep 2016 370.25 +0.25 +0.07%
Corn Dec 2016 378.25 +0.5 +0.13%
Oats Mar 2016 212 +1.75 +0.83%
Oats May 2016 210.75 +0.25 +0.12%
Oats Jul 2016 213.75 +0.5 +0.23%
Oats Sep 2016 219.25 +0.5 +0.23%
Oats Dec 2016 216.5 +0.25 +0.12%
Wheat Mar 2016 462.75 +1.5 +0.33%
Wheat May 2016 468.25 +1.5 +0.32%
Wheat Jul 2016 475.75 +1.5 +0.32%
Wheat Sep 2016 485.5 +1.5 +0.31%
Wheat Dec 2016 500 +1.75 +0.35%
Minneapolis
Spring Wheat Mar 2016 489.75 +2 +0.41%
Spring Wheat May 2016 497.5 +1.5 +0.30%
Spring Wheat Jul 2016 507.25 +1 +0.20%
Spring Wheat Sep 2016 519.5 +0.75 +0.14%
Spring Wheat Dec 2016 535.25 +0.25 +0.05%
Kansas City
Hard Red Wheat Mar 2016 461 +1 +0.22%
Hard Red Wheat May 2016 470.5 +1.25 +0.27%
Hard Red Wheat Jul 2016 480.5 +1.5 +0.31%
Hard Red Wheat Sep 2016 494.75 +1.5 +0.30%
Hard Red Wheat Dec 2016 515.25 +1 +0.19%
