Canola up on production worries and support from soybeans

Canola futures closed higher for the third straight day with support from concerns about the health of the crop and from rising U.S. crop futures.

The crop problems in the eastern Prairies extend beyond problems with unseeded, flooded or saturated fields. Many crops are simply not doing well and are well behind normal development.

Soy oil had provided support on Monday and Tuesday but it dipped today.

However soybeans rose on bargain buying and on news of new sales to China. Traders are thinking that the price declines that have lowered soybeans to 2-½ year lows might be attracting the interest of importers.

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November canola showed a burst of strength just before the close and settled at $450.30, up $4.80. But that was off its high of $452.70 set shortly after the opening.

Corn rose on bargain buying after prices hit a four-year low. Also technical measure like the 14-day relative strength index had shown that corn was in an oversold position.

Strong U.S. ethanol production and falling ethanol stocks also supported corn.

However, gains were capped by expectations of record corn and soybean yields.

Commodity Weather Group today projected a corn yield of 171 bushels per acre. The official U.S. Department of Agriculture forecast is 165.3 bu. per acre. Last year’s yield was 158.8 and in the drought year of 2012 it was 123.4.

Wheat futures were mixed but little changed. Chicago edged higher on bargain buying but Kansas and Minneapolis closed a little lower on pressure from the U.S. winter wheat harvest.

The Russian government and two private forecasters all increased their estimates of the country’s grain harvest by a few million tonnes thanks to good harvest conditions.

Winnipeg ICE Futures Canada dollars per tonne

Canola Nov 2014 450.30 +4.80 +1.08%

Canola Jan 2015 453.30 +4.60 +1.03%

Canola Mar 2015 454.00 +4.80 +1.07%

Canola May 2015 450.10 +5.00 +1.12%

Canola Jul 2015 447.00 +5.10 +1.15%

Milling Wheat Oct 2014 188.00 unch 0.00%

Milling Wheat Dec 2014 194.00 unch 0.00%

Milling Wheat Mar 2015 205.00 -1.00 -0.49%

Durum Wheat Oct 2014 250.00 unch 0.00%

Durum Wheat Dec 2014 256.00 unch 0.00%

Durum Wheat Mar 2015 257.00 unch 0.00%

Barley Oct 2014 137.50 unch 0.00%

Barley Dec 2014 139.50 unch 0.00%

Barley Mar 2015 140.50 unch 0.00%

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

Chicago

Soybeans Aug 2014 1187.25 +6.75 +0.57%

Soybeans Sep 2014 1121.5 +17.25 +1.56%

Soybeans Nov 2014 1102 +15.75 +1.45%

Soybeans Jan 2015 1110.5 +15.5 +1.42%

Soybeans Mar 2015 1119.25 +15.75 +1.43%

Soybeans May 2015 1126.25 +14.5 +1.30%

Soybean Meal Aug 2014 383.7 +4.6 +1.21%

Soybean Meal Sep 2014 366.4 +7.7 +2.15%

Soybean Meal Oct 2014 358 +9 +2.58%

Soybean Oil Aug 2014 36.83 -0.07 -0.19%

Soybean Oil Sep 2014 36.93 -0.07 -0.19%

Soybean Oil Oct 2014 36.92 -0.07 -0.19%

Corn Sep 2014 378.25 +4.25 +1.14%

Corn Dec 2014 386.75 +5 +1.31%

Corn Mar 2015 398.5 +5.25 +1.34%

Corn May 2015 406.75 +5 +1.24%

Corn Jul 2015 414.5 +5 +1.22%

Oats Sep 2014 339 +4.75 +1.42%

Oats Dec 2014 334.75 +3.75 +1.13%

Oats Mar 2015 328.5 +3 +0.92%

Oats May 2015 320.75 +3 +0.94%

Oats Jul 2015 324 +3 +0.93%

Wheat Sep 2014 538 +0.25 +0.05%

Wheat Dec 2014 562 +1 +0.18%

Wheat Mar 2015 583.5 +1.5 +0.26%

Wheat May 2015 598 +1 +0.17%

Wheat Jul 2015 609.25 +0.75 +0.12%

Minneapolis

Spring Wheat Sep 2014 628 -2.5 -0.40%

Spring Wheat Dec 2014 639 -2.75 -0.43%

Spring Wheat Mar 2015 653.5 -2.25 -0.34%

Spring Wheat May 2015 662.25 -2 -0.30%

Spring Wheat Jul 2015 671 -2.25 -0.33%

Kansas City

KC HRW Wheat Sep 2014 637.25 -1.75 -0.27%

KC HRW Wheat Dec 2014 648.5 -1 -0.15%

KC HRW Wheat Mar 2015 655.5 +0.25 +0.04%

KC HRW Wheat May 2015 659.75 +0.75 +0.11%

KC HRW Wheat Jul 2015 647.5 -0.75 -0.12%

Light crude oil nearby futures in New York rose $1.24 at $101.20 US per barrel.

The Canadian dollar at noon was 93.02 cents US, up from 92.89 cents the previous trading day. The U.S. dollar at noon was $1.0750 Cdn.

Stock markets were support by positive economic news and the TSX composite and the Dow hit records.

China’s economic growth picked up slightly in the second quarter, topping market expectations. Its economy grew 7.5 percent in April-June from a year earlier.

U.S. manufacturing output rose at its fastest pace in more than two years in the second quarter.

In unofficial tallies —

The Toronto Stock Exchange’s S&P/TSX composite index rose 145.02 points, or 0.96 percent, to close at a record high 15,226.34.

The index is up nearly 12 percent this year.

The Dow Jones industrial average rose 77.33 points or 0.45 percent, to end at a new record high or 17,138.01.

The S&P 500 gained 8.26 points or 0.42 percent, to finish at 1,981.54.

The Nasdaq Composite added 9.58 points or 0.22 percent, to close at 4,425.97.