It was a disappointing day Thursday on crop markets when good U.S. weekly exports and rallies in other commodities and equities failed to lift crop futures.
Early in the day March canola broke through the $600 mark and climbed to $602, breaking the 200-day moving average, but it was unable to hold at that level.
Soybeans also suffered a similar technical reversal after breaking through the 200 day moving average but then failing to hold the gain.
Investors viewed the early rally as a chance to take profits. Also, farmers made sales, causing elevator company to do some hedging.
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U.S. grains: Soy drops on demand worries, corn firm as traders question lofty yield projections
U.S. soybean futures fell to a 1-1/2 week low on Tuesday as China continued to shun purchases from the United States and as forecasts for improved rains in the coming days reinforced expectations for a sizeable Midwest harvest.
Palm oil prices were pressured by India imposing a duty on crude palm oil imports.
March canola closed at $592.50, down $3.50.
November canola closed at $537.70, down $5.30.
Canola remains supported by concerns about dwindling stocks but expectations of a record South American soybean crop keep a lid on prices.
The International Grains Council today pegged its 2012-13 global wheat crop estimate at 656 million tonnes, up by 2 million from its previous estimate.
The IGC said the outlook for the 2013-14 wheat crop was mixed with concern centred on the U.S. drought.
“Elsewhere, prospects are generally more promising and global output is tentatively projected up four percent, year-on-year, with a two percent increase in area,” the IGC said.
The IGC cut its forecast for global corn stocks at the end of 2012-13 by three million to 113 million tonnes, a nine-year low reflecting increased consumption.
Last year’s stocks were 133 million tonnes.
It raised its estimate of 2012-13 global corn production by 15 million tonnes to 845 million, still sharply below the prior season’s 877 million.
Most of the increase was due to revision in China’s crop, which was raised to 208 million tonnes, up 198 million previously.
Winnipeg (per tonne)
Canola Mar 13 $592.50, down $3.50 -0.59%
Canola May 13 $582.20, down $4.20 -0.72%
Canola Jul 13 $573.70, down $6.50 -1.12%
Canola Nov 13 $537.70, down $5.30 -0.98%
Milling Wheat Mar 13 $291.00, unchanged
Milling Wheat May 13 $294.00, unchanged
Milling Wheat Jul 13 $296.00, unchanged
Durum Wheat Mar 13 $312.40, unchanged
Durum Wheat May 13 $316.40, unchanged
Durum Wheat Jul 13 $319.40, unchanged
Barley Mar 13 $242.90, unchanged
Barley May 13 $243.90, unchanged
Barley Jul 13 $244.40, unchanged
Chicago (per bushel)
Soybeans (P) Mar 13 $14.3025, down 6.25 cents -0.44%
Soybeans (P) May 13 $14.1475, down 6.5 -0.46%
Soybeans (P) Jul 13 $14.06, down 6.75 -0.48%
Soybeans (P) Aug 13 $13.795, down 6.5 -0.47%
Corn (P) Mar 13 $7.245, down 6.75 -0.92%
Corn May 13 $7.2525, down 6.0 -0.82%
Corn (P) Jul 13 $7.17, down 4.25 -0.59%
Oats (P) Mar 13 $3.55, down 2.25 -0.63%
Oats (P) May 13 $3.6025, down 2.5 -0.69%
Oats (P) Jul 13 $3.6475, down 1.5 -0.41%
Minneapolis (per bushel)
Spring Wheat Mar 13 $8.6925, down 2.25 cents -0.26%
Spring Wheat May 13 $8.8025, down 1.75 -0.20%
Spring Wheat Jul 13 $8.875, down 1.75 -0.20%
Spring Wheat Sep 13 $8.8675, down 2.25 -0.25%
The Bank of Canada noon rate for the loonie was $1.0149, little changed from $1.0152 the day before.
The U.S. dollar was 98.53 cents Cdn.
Nearby crude oil in New York jumped $1.25 to $95.49 per barrel.
Good economic news boosted the S&P 500 to a five-year high.
The number of Americans filing new claims for unemployment benefits tumbled to a five-year low last week.
U.S. housing starts jumped 12.1 percent last month to their highest level since June 2008.
The Toronto Stock Exchange’s S&P/TSX composite index climbed 65.91 points, or 0.52 percent to 12,674.73.
The Dow Jones industrial average rose 84.79 points, or 0.63 percent, to close at 13,596.02.
The Standard & Poor’s 500 Index was up 8.32 points, or 0.56 percent, finishing at 1,480.95.
The Nasdaq Composite Index climbed 18.46 points, or 0.59 percent, to 3,136.00.
