Canola rose Tuesday supported by a general commodity rise, sparked by a weaker U.S. dollar and stronger oil prices.
The Canadian dollar rose, limiting canola’s gain.
The trade awaited Wednesday’s Statistics Canada report. Canola stocks on Dec. 31 were an estimated 10.7 million tonnes, down 14 percent from last year, and the second-most ample on record, according to a Reuters trade survey.
West Texas crude oil has rallied more than $8 a barrel or about 19 percent in the last four days to close today at $53.05. There is a large strike in the U.S. oil refining industry affecting 10 percent of refinery capacity and that supported oil. Also, oil and other commodities were due for a correction after a long period of decline.
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Oil’s rise weakened the U.S. dollar and lifted the loonie.
Soybeans rallied 2.9 percent on the commodity rally but it did not break though to the psychological resistance at $10 a bushel.
Brazilian analysts have been trimming their soybean production estimates by about a million tonnes, but today Informa Economics raised its forecast of Argentina’s crop by 1.5 million to 57 million. It also increased its outlook for the corn crop.
The commodity rally helped corn and wheat more than the oilseeds.
Kansas and Chicago wheat rallies more than four percent while Minneapolis spring wheat was up almost four percent.
Several new global tenders for wheat supply from Egypt, Iraq and Turkey also supported wheat. The recent drop in wheat prices has caused importers to issue the tenders.
The monthly review of the condition of the winter wheat crop also lent support.
Kansas showed a slight deterioration at three percent very poor (two percent last month), 10 poor (seven percent), 41 fair (42 percent), 42 good (45 percent), and 4 excellent (four percent).
Oklahoma was two percent very poor (two percent lasts month), 11 percent poor (10 percent), 46 fair (34 percent), 39 good (48 percent) and two percent excellent (six percent)
However, a large part of the Plains and Midwest got snow and rain over the weekend and that should help to improve crop conditions.
India looks likely to harvest a bumper wheat crop this year, its eighth in a row to exceed demand, possibly encouraging the government to allow exports from overflowing grain bins, Reuters reported.
Corn also rallied more than four percent, supported by the commodity rally. But higher corn weighed on the Chicago feeder futures price.
Light crude oil nearby futures in New York were up $3.48 to US$53.05 per barrel.
The Canadian dollar at noon was US80.28 cents, up from US79.50 cents the previous trading day. The U.S. dollar at noon was C$1.2456.
The rise in oil lifted energy company shares. Also automakers were buoyed by stronger than expected vehicle sales in January.
The Toronto Stock Exchange composite rose 162.41 points or 1.09 percent to 15,062.88.
The Dow Jones industrial average rose 304.98 points, or 1.76 percent, to 17,666.02, the S&P 500 gained 29.09 points, or 1.44 percent, to 2,049.94 and the Nasdaq Composite added 51.05 points, or 1.09 percent, to 4,727.74.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2015 457.30 +5.90 +1.31%
Canola May 2015 453.30 +6.00 +1.34%
Canola Jul 2015 450.50 +5.70 +1.28%
Canola Nov 2015 438.70 +5.60 +1.29%
Canola Jan 2016 440.30 +5.60 +1.29%
Milling Wheat Mar 2015 226.00 +7.00 +3.20%
Milling Wheat May 2015 237.00 +7.00 +3.04%
Milling Wheat Jul 2015 240.00 +7.00 +3.00%
Durum Wheat Mar 2015 349.00 unch 0.00%
Durum Wheat May 2015 339.00 unch 0.00%
Durum Wheat Jul 2015 329.00 unch 0.00%
Barley Mar 2015 195.00 unch 0.00%
Barley May 2015 197.00 unch 0.00%
Barley Jul 2015 199.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Mar 2015 987 +27.5 +2.87%
Soybeans May 2015 993 +26.75 +2.77%
Soybeans Jul 2015 998 +26.25 +2.70%
Soybeans Aug 2015 996.75 +25.5 +2.63%
Soybeans Sep 2015 979 +22.75 +2.38%
Soybeans Nov 2015 966.25 +21 +2.22%
Soybean Meal Mar 2015 340.6 +12.7 +3.87%
Soybean Meal May 2015 332.3 +10.7 +3.33%
Soybean Meal Jul 2015 329.4 +10.2 +3.20%
Soybean Oil Mar 2015 30.8 +0.39 +1.28%
Soybean Oil May 2015 31.03 +0.38 +1.24%
Soybean Oil Jul 2015 31.25 +0.38 +1.23%
Corn Mar 2015 385.75 +16 +4.33%
Corn May 2015 393.75 +16 +4.24%
Corn Jul 2015 401 +15.5 +4.02%
Corn Sep 2015 407.75 +15.25 +3.89%
Corn Dec 2015 416.25 +15.25 +3.80%
Oats Mar 2015 280 +10.75 +3.99%
Oats May 2015 280.5 +6.5 +2.37%
Oats Jul 2015 281.25 +4.25 +1.53%
Oats Sep 2015 287 +4 +1.41%
Oats Dec 2015 286.25 +2.25 +0.79%
Wheat Mar 2015 513.75 +21 +4.26%
Wheat May 2015 517.75 +20.5 +4.12%
Wheat Jul 2015 522.25 +20.5 +4.09%
Wheat Sep 2015 531 +20.5 +4.02%
Wheat Dec 2015 543.75 +20.5 +3.92%
Minneapolis
Spring Wheat Mar 2015 576 +22 +3.97%
Spring Wheat May 2015 579.5 +21.25 +3.81%
Spring Wheat Jul 2015 586.5 +20.5 +3.62%
Spring Wheat Sep 2015 594.25 +19.75 +3.44%
Spring Wheat Dec 2015 605 +20 +3.42%
Kansas City
Hard Red Wheat Mar 2015 559 +24.5 +4.58%
Hard Red Wheat May 2015 561.5 +25.25 +4.71%
Hard Red Wheat Jul 2015 563.75 +23.75 +4.40%
Hard Red Wheat Sep 2015 575.75 +23.5 +4.26%
Hard Red Wheat Dec 2015 590.25 +22.75 +4.01%
