Canola regained much of the territory it lost Tuesday, advancing almost 17 cents per bushel in a short-covering rally.
However, analysts were split on whether canola has bottomed and is due for a bounce.
“This market’s really been oversold,” said Errol Anderson of Pro Market Communications.
“I think most of the damage has already been done.”
Thursday Winnipeg ICE canola November futures rose $7.30 per tonne to $485.50, with January rising the same amount to $490.60.
Canola has sagged in recent weeks, with especially big losses in recent days.
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A big crop growing in Western Canada, a glut of vegetable oil in North America and worries about Chinese demand have underpinned recent canola weakness.
The Monday U.S. Department of Agriculture world supply and demand reports are also giving the markets the willies, with USDA widely predicted to find a 14 billion bushel crop growing in U.S. farmers’ fields. Corn dominates crop futures markets, so any more bearishness added to the already bearish corn expectations will not help other crops rise.
Soybeans and canola both rose about the same amount per bushel, with soybeans rising 18 cents per bushel for November. September soybeans shot 28 cents per bushel higher as projections of a late harvest make today’s already small soybean stocks seem even smaller.
Most crops were only slightly changed on the day, with the greatest action being seen in oilseeds.
Most commodity and equity markets were higher Thursday, with good U.S. and Chinese economic data underpinning confidence that the world’s economies are continuing to recover from the world financial crisis.
ICE Futures Canada, dollars per tonne
Canola Nov 2013 485.50+7.30 +1.53%
Canola Jan 2014 490.60+7.30 +1.51%
Canola Mar 2014 495.90+7.40 +1.51%
Canola May 2014 501.40+7.30 +1.48%
Canola Jul 2014 506.00+7.00 +1.40%
Milling Wheat Oct 2013 256.00+1.00 +0.39%
Milling Wheat Dec 2013 261.00+3.00 +1.16%
Milling Wheat Mar 2014 266.00unch 0.00%
Durum Wheat Oct 2013 291.00+2.00 +0.69%
Durum Wheat Dec 2013 295.00+2.00 +0.68%
Durum Wheat Mar 2014 305.00+2.00 +0.66%
Barley Oct 2013 189.00unch 0.00%
Barley Dec 2013 194.00unch 0.00%
Barley Mar 2014 194.00unch 0.00%
American crops in cents US per bushel, soybean meal in $US per short ton and soybean oil in
cents US per pound
Chicago
Soybeans Aug 2013 1355.75 +28 +2.11%
Soybeans Sep 2013 1227.75 +28.75+2.40%
Soybeans Nov 2013 1184.25 +18.5 +1.59%
Soybeans Jan 2014 1189.25 +17 +1.45%
Soybeans Mar 2014 1193.25 +16.5 +1.40%
Soybeans May 2014 1193 +15 +1.27%
Soybean Meal Aug 2013 422.5 +22.2 +5.55%
Soybean Meal Sep 2013 392.6 +15.6 +4.14%
Soybean Meal Oct 2013 360.6 +8.8 +2.50%
Soybean Oil Aug 2013 41.65 +0.01 +0.02%
Soybean Oil Sep 2013 41.75 +0.01 +0.02%
Soybean Oil Oct 2013 41.84 unch 0.00%
Corn Sep 2013 473.5 +5.25 +1.12%
Corn Dec 2013 459.75+1.5 +0.33%
Corn Mar 2014 473.25+1.75 +0.37%
Corn May 2014 481.5 +2 +0.42%
Corn Jul 2014 487.25+2.5 +0.52%
Oats Sep 2013 362 +9.75 +2.77%
Oats Dec 2013 327 +0.25 +0.08%
Oats Mar 2014 330.75-0.5 -0.15%
Oats May 2014 331 -0.75 -0.23%
Oats Jul 2014 335.25-1.5 -0.45%
Wheat Sep 2013 641.25-2.25 -0.35%
Wheat Dec 2013 653.75-2.5 -0.38%
Wheat Mar 2014 665.5 -2.25 -0.34%
Wheat May 2014 673.5 -2 -0.30%
Wheat Jul 2014 668 -1.5 -0.22%
Minneapolis
Spring Wheat Sep 2013 733.5 -2.75 -0.37%
Spring Wheat Dec 2013 741.5 -3 -0.40%
Spring Wheat Mar 2014 753 -4 -0.53%
Spring Wheat May 2014 760 -5 -0.65%
Spring Wheat Jul 2014 767 -3.25 -0.42%
Kansas City
KCBT Red Wheat Sep 2013 702 +3 +0.43%
KCBT Red Wheat Dec 2013 706.75-0.75 -0.11%
KCBT Red Wheat Mar 2014 715 -1.5 -0.21%
KCBT Red Wheat May 2014 715.5 -1.75 -0.24%
KCBT Red Wheat Jul 2014 699.5 -2.25 -0.32%
Light crude oil nearby futures in New York dropped $0.97 at $103.40 US per barrel.
The Bank of Canada rate for the loonie at noon was 96.64 cents US, up from 96.01 cents the
previous trading day. The U.S. dollar at noon was $1.0348 Cdn.
