Canola rises with soybeans, crusher buying

Canola futures rose for a second straight session on Wednesday, supported by rising soybeans and soy oil as well as modest crusher buying.

Soybean futures closed higher on Wednesday on technical buying and fund short-covering after multi-year lows set this week, traders said.

Chart-based buying was noted after January soybean futures staged a key reversal on Monday, with the contract settling above the previous session’s high after dipping to a contract low.

Additional support from uncertainty about how and when Argentina’s president-elect Mauricio Macri might ease export taxes on soybeans and devalue the country’s currency, Reuters reported. Both moves could trigger fresh soybean sales by Argentine farmers.

The gains were limited by mostly favorable crop weather in South America, despite a few dry spots in parts of Brazil.

There is also concern about a potential increase in soy and gain exports from Argentina as the new president there considers relaxing or temporarily dropping the countries taxes on grain exports.

December soy oil rose for a fifth straight session, breaking through chart resistance at its 100-day moving average, Reuters reported.

The Malaysia Palm Oil Association, a group of planters, reported a 10 percent decline in Nov. 1-20 production from a month earlier.

CBOT soy meal futures also closed higher

Chicago wheat futures settled mixed on Wednesday with nearby contracts sagging in technical trade a day ahead of American Thanksgiving when U.S. markets will be closed.

Funds appeared to exit long December/short March spread positions. First notice day for December deliveries is Monday.

Egypt’s main state wheat buyer bought 240,000 tonnes of French, Russian and Romanian wheat in a tender for Dec. 21-31. No U.S. wheat was offered.

Minneapolis spring wheat closed mixed with front months gaining against back months. December rose on fund short-covering and ideas of light deliveries on first notice day next week.

More moisture is expected in the U.S. Plains and southern Midwest, which should help the condition of the hard and soft winter wheat crops.

Corn futures were higher, lifted by investor short covering and firm U.S. cash markets tied to a slow pace of farmer sales following the harvest, traders told Reuters.

Investors also continued to roll positions out of the December contract and into deferred contracts.

Farmers are delaying sales in the hopes of selling early next year at higher prices, but increased offerings of corn by commercial elevators weighed on cash bids in some parts of the U.S. Midwestern crop belt.

Ethanol futures fell about one percent after the U.S. Energy Information in a weekly report showed record production rates and larger supplies of corn-based biofuel, Reuters said.

Light crude oil nearby futures in New York were up 17 cents to US$43.04 per barrel.

The Canadian dollar at noon was US75.18 cents, up slightly from 75.14 cents the previous trading day. The U.S. dollar at noon was C$1.3301.

Unofficially, the TSX composite closed at 13,403.42, down just 4.41 points of 0.03 percent

The Dow Jones industrial average rose 19.64 points, or 0.11 percent, to 17,831.83, the S&P 500 gained 1.32 points, or 0.06 percent, to 2,090.46 and the Nasdaq Composite added 16.32 points, or 0.32 percent, to 5,119.13.
Winnipeg ICE Futures Canada dollars per tonne

Canola Jan 2016 467.60 +3.00 +0.65%

Canola Mar 2016 474.40 +3.30 +0.70%

Canola May 2016 479.70 +3.70 +0.78%

Canola Jul 2016 484.20 +3.60 +0.75%

Canola Nov 2016 477.10 +2.90 +0.61%

Milling Wheat Dec 2015 236.00 unch 0.00%

Milling Wheat Mar 2016 238.00 unch 0.00%

Milling Wheat May 2016 242.00 unch 0.00%

Durum Wheat Dec 2015 320.00 unch 0.00%

Durum Wheat Mar 2016 325.00 unch 0.00%

Durum Wheat May 2016 335.00 unch 0.00%

Barley Dec 2015 189.00 unch 0.00%

Barley Mar 2016 191.00 unch 0.00%

Barley May 2016 197.00 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 875.25 +11.5 +1.33%

Soybeans Mar 2016 877.75 +11.5 +1.33%

Soybeans May 2016 884 +11.75 +1.35%

Soybeans Jul 2016 890 +11.75 +1.34%

Soybeans Aug 2016 891.5 +11.5 +1.31%

Soybeans Sep 2016 890.75 +11 +1.25%

Soybean Meal Dec 2015 284.8 +1 +0.35%

Soybean Meal Jan 2016 285.5 +1.6 +0.56%

Soybean Meal Mar 2016 287 +2.1 +0.74%

Soybean Oil Dec 2015 28.89 +0.58 +2.05%

Soybean Oil Jan 2016 29.21 +0.62 +2.17%

Soybean Oil Mar 2016 29.47 +0.63 +2.18%

Corn Dec 2015 366 +1.75 +0.48%

Corn Mar 2016 372.75 +3.25 +0.88%

Corn May 2016 378.25 +3.5 +0.93%

Corn Jul 2016 383.5 +3.25 +0.85%

Corn Sep 2016 387.25 +3 +0.78%

Oats Dec 2015 244.25 -5.25 -2.10%

Oats Mar 2016 236.75 +1.75 +0.74%

Oats May 2016 234.25 +1.25 +0.54%

Oats Jul 2016 234 -1.75 -0.74%

Oats Sep 2016 237.5 -3 -1.25%

Wheat Dec 2015 479.25 -5 -1.03%

Wheat Mar 2016 487.5 -1 -0.20%

Wheat May 2016 492.5 -0.25 -0.05%

Wheat Jul 2016 497.5 +0.5 +0.10%

Wheat Sep 2016 506.75 +0.75 +0.15%

Minneapolis

Spring Wheat Dec 2015 514.5 +5 +0.98%

Spring Wheat Mar 2016 509.5 +0.25 +0.05%

Spring Wheat May 2016 517.25 -0.5 -0.10%

Spring Wheat Jul 2016 526.5 -0.75 -0.14%

Spring Wheat Sep 2016 536.75 -0.75 -0.14%

Kansas City

Hard Red Wheat Dec 2015 457.25 -0.25 -0.05%

Hard Red Wheat Mar 2016 472 -0.5 -0.11%

Hard Red Wheat May 2016 482.75 -0.25 -0.05%

Hard Red Wheat Jul 2016 493.5 +0.25 +0.05%

Hard Red Wheat Sep 2016 507.25 +0.25 +0.05%

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