Canola futures closed a little lower, pressured by commercial hedging and slower fund buying.
Generally crop futures were slightly lower on a day when there was little new news about supply and demand.
Canola had been higher midmorning as speculators bought canola and sold soybeans but then fund buying trailed off.
Soybeans fell as exporters cancelled another 120,000 tonnes of old crop soybeans to China.
Basis for nearby delivery of canola is getting wider, indicating exporters and domestic crushers have their immediate needs met. Basis improves for deliveries in April-July period.
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The market so far is reacting little to news stories about continued dryness in parts of Brazil, likely because production from South America is still expected to be record large, even with some trimming.
Oil World, the oilseed analysis publication, reported that rain is urgently needed in the state of Goias, the fourth largest producer. It is also dry in parts of Mato Grosso do Sul the fifth largest producer and in the eastern states of Minas Gerais and Bahia.
However, the main growing states are in the western and southern parts of the country — Mato Grosso, Parana and Rio Grande Do Sul — and moisture is better there.
Some yield potential in Goias has already been lost.
Late last week, Brazilian consulting firm Agroconsult noted a dry January as it trimmed its soy crop forecast by 900,000 tonnes to 93.9 million tonnes, which is still a record.
The USDA in early January increased its forecast of Brazil’s crop by 1.5 million tonnes to 95.5 million. Last year, production was 86.7 million.
Brazil’s neighbour Paraguay is now expected to produce 8.8 million tonnes of soybeans, said Oil World. The previous forecast was 9.2 million tonnes. Last year it produced 9.0 million.
Corn futures also dipped on ample supplies.
Wheat futures were also a little lower on large international supplies and the strong U.S. dollar, which makes American wheat more expensive for foreign buyers.
The Ukrainian government and traders have agreed that no more than 1.2 million tonnes of Ukrainian milling wheat will be exported between Jan. 1 and June 30, agriculture minister Oleksiy Pavlenko said on Tuesday.
They also agreed exports of feed wheat would not exceed 3.4 million tonnes in January-June, while shipments of corn could be no more than 13.2 million tonnes in the same period.
Light crude oil nearby futures in New York were up $1.08 to US$46.23 per barrel.
The Canadian dollar at noon was US80.62 cents, up from US80.57 cents the previous trading day. The U.S. dollar at noon was C$1.2404.
Weaker than expected quarterly profit reports by several major corporations, incuding Microsoft and Caterpillar weighed down stock markets.
The Dow Jones industrial average fell 287.45 points, or 1.63 percent, to 17,391.25, the lost 27.32 points, or 1.33 percent, to 2,029.77 and the Nasdaq Composite dropped 90.27 points, or 1.89 percent, to 4,681.50.
The slightly higher crude oil price and higher gold helped lift the Toronto Stock Exchange composite by 36.5 points or 0.24 percent to close at 14,833.88.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2015 459.60 -1.10 -0.24%
Canola May 2015 455.10 -0.80 -0.18%
Canola Jul 2015 448.90 -0.20 -0.04%
Canola Nov 2015 435.10 -0.20 -0.05%
Canola Jan 2016 436.80 -0.50 -0.11%
Milling Wheat Mar 2015 217.00 -1.00 -0.46%
Milling Wheat May 2015 220.00 -1.00 -0.45%
Milling Wheat Jul 2015 223.00 -1.00 -0.45%
Durum Wheat Mar 2015 363.00 unch 0.00%
Durum Wheat May 2015 353.00 unch 0.00%
Durum Wheat Jul 2015 343.00 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 973.75 -9.75 -0.99%
Soybeans May 2015 981.25 -9 -0.91%
Soybeans Jul 2015 987 -9 -0.90%
Soybeans Aug 2015 987.25 -9 -0.90%
Soybeans Sep 2015 973.5 -9.25 -0.94%
Soybeans Nov 2015 962.75 -9 -0.93%
Soybean Meal Mar 2015 336.6 -2.3 -0.68%
Soybean Meal May 2015 328.8 -2.8 -0.84%
Soybean Meal Jul 2015 326.5 -3.3 -1.00%
Soybean Oil Mar 2015 31.17 +0.09 +0.29%
Soybean Oil May 2015 31.37 +0.09 +0.29%
Soybean Oil Jul 2015 31.57 +0.09 +0.29%
Corn Mar 2015 381.25 -2.75 -0.72%
Corn May 2015 389.75 -2.75 -0.70%
Corn Jul 2015 397 -3 -0.75%
Corn Sep 2015 403.5 -3 -0.74%
Corn Dec 2015 411.25 -3 -0.72%
Oats Mar 2015 289.25 -1.5 -0.52%
Oats May 2015 292.75 -1.25 -0.43%
Oats Jul 2015 297.25 -1.25 -0.42%
Oats Sep 2015 300 -1 -0.33%
Oats Dec 2015 297 +0.75 +0.25%
Wheat Mar 2015 519 -1.5 -0.29%
Wheat May 2015 523 -1.25 -0.24%
Wheat Jul 2015 528.75 -0.5 -0.09%
Wheat Sep 2015 537.25 unch 0.00%
Wheat Dec 2015 549 -0.25 -0.05%
Minneapolis
Spring Wheat Mar 2015 566.5 -2.5 -0.44%
Spring Wheat May 2015 573.75 -2.25 -0.39%
Spring Wheat Jul 2015 582.75 -2 -0.34%
Spring Wheat Sep 2015 590.75 -2.5 -0.42%
Spring Wheat Dec 2015 600.5 -2.5 -0.41%
Kansas City
Hard Red Wheat Mar 2015 550.25 -4.25 -0.77%
Hard Red Wheat May 2015 555.75 -4.25 -0.76%
Hard Red Wheat Jul 2015 560 -4 -0.71%
Hard Red Wheat Sep 2015 572.25 -3.75 -0.65%
Hard Red Wheat Dec 2015 586.75 -3.75 -0.64%
