Canola rose Tuesday, supported by rising soybeans and a lack of farmer deliveries.
July canola closed at $617.30, up $6.10.
November closed at $569.20, up $4.40.
The recent heavy rain in some areas and frost in others has likely increased the need to reseed canola in some fields. Some areas might be too wet to seed, but the trade still expects a record crop.
Soybeans rose on hot weather in the Midwest. There is a growing belief that there will not be enough moisture to second crop soybeans on harvested winter wheat stubble.
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U.S. markets were open after being closed Monday for Memorial Day.
The dryness is also hurting corn. After markets closed, USDA said corn good-to-excellent rating dropped to 72 percent from 77 percent the week before. That was down more than the trade expected and should support corn when trading resumes.
Rain is expected later this week in the Midwest and that pressured corn today, but not soybeans because of the previously mentioned worry about second crop seeding.
Oats were hammered again with July down 5.2 percent. The big drops in oats might be linked to the lack of liquidity in the oats markets. July oats are oversold with a 14-day relative strength index of just 21 percent.
• Wheat was lower after rain fell in Russia and Australia on the weekend. Harvest has begun in the U.S. winter wheat region in the southern plains. The winter wheat crop fell to 54 percent good-to-excellent, from 58 percent a week ago. Nine percent is now harvested, well ahead of the usual one percent.
U.S. spring wheat improved though, with its good-to-excellent rating rising to 79 percent, up from 74 percent week ago.
• Viterra shareholders have approved the sale to Glencore.
• In the wider market, traders are worried about Spain’s troubled banking sector.
On the other hand, Greek polls that show that a party that favours the plan to stay in the euro zone has taken the lead in the run up to the June 17 election were viewed favourably.
Winnipeg (per tonne)
Canola Jul 12 $617.30, up $6.10 +1.00%
Canola Nov 12 $569.20, up $4.40 +0.78%
Canola Jan 13 $573.90, up $3.80 +0.67%
Canola Mar 13 $577.00, up $3.50 +0.61%
The previous day’s best basis in the par region was $14 over the July contract, said ICE Futures Canada.
The 14-day relative strength index for July is 54 percent.
Western Barley Jul 12 $237.00, unchanged
Western Barley Oct 12 $210.00, unchanged
Milling Wheat Oct 12 $259.70, down $3.00 -1.14%
Milling Wheat Dec 12 $267.00, down $3.00 -1.11%
Milling Wheat Mar 13 $276.00, down $3.00 -1.08%
Durum Wheat Oct 12 $275.60, unchanged
Durum Wheat Dec 12 $280.10, unchanged
Durum Wheat Mar 13 $286.70, unchanged
Barley Oct 12 $180.00, down $2.00 -1.10%
Barley Dec 12 $183.50, down $1.50 -0.81%
Barley Mar 13 $186.50, down $1.50 -0.80%
Chicago (per bushel)
Soybeans (P) Jul 12 $13.8675, up 4.75 cents +0.34%
Soybeans (P) Aug 12 $13.6725, up 5.25 +0.39%
Soybeans (P) Nov 12 $12.935, up 4.25 +0.33%
Corn (P) Jul 12 $5.625, down 16.0 -2.77%
Corn (P) Sep 12 $5.225, down 4.0 -0.76%
Corn (P) Dec 12 $5.175, down 4.0 -0.77%
Oats (P) Jul 12 $2.805, down 15.75 -5.32%
Oats (P) Sep 12 $2.85, down 14.75 -4.92%
Oats (P) Dec 12 $2.9125, down 14.75 -4.82%
Minneapolis (per bushel)
Spring Wheat Jul 12 $7.7175, down14.5
Spring Wheat Sep 12 $7.6825, down 14.75
Spring Wheat Dec 12 $7.7375, down 16.25
The Bank of Canada noon hour rate for the Canadian dollar is 97.53 cents US, down from 97.65 cents the previous trading day.
The U.S. dollar was $1.0253 Cdn.
The TSX rose 43.15 points, or 0.4 percent, at 11,609.30.
The Dow Jones industrial average rose 125.86 points, or 1.01 percent, to 12,580.69.
The S&P 500 Index added 14.60 points, or 1.11 percent, to 1,332.42.
The Nasdaq Composite gained 33.46 points, or 1.18 percent, to 2,870.99.
