Canola broke through technical resistance Tuesday and posted a gain of almost 2.7 percent in the most traded May contract.
The tensions over Ukraine lifted wheat and corn.
March soy oil jumped more than three percent and soybeans made more modest gains.
Worries about dry conditions in South East Asia pushed palm oil higher.
The oil component of the oilseed complex finally appears to be gaining traction after months of meal being the driver.
Support also came from Australia where the government forecaster said canola acreage might drop because of ongoing drought in the eastern side of the country. Production there might drop 17 percent to 2.948 million tonnes, ABARES said, down from the 3.548 million tonnes in the previous season.
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Reuters reported that Michael Cordonnier, of Soybean and Corn Advisor, which specializes in South America, cut his outlook for soybean production in Brazil to 87 million tonnes and pegged Argentine soybean production at 53.5 million tonnes.
Also, private analytics firm Informa Economics lowered its estimate of Brazil’s soybean crop to 88.8 million tonnes and cut its Argentine soybean harvest forecast to 54 million tonnes, trade sources said.
The ICE Futures Canada “best basis” report for canola had shown a significant narrowing to about -$24 per tonne in the March contract late last week, but that appears to have been a short term situation. The basis report shifted to the May contract today and shows it at -$43.80.
The tensions over Ukraine eased slightly with Russian president Vladimir Putin saying he would use military force in Ukraine only as a last resort.
Grain and other commodities are still being shipped from Ukraine.
However, the situation remains highly charged and the uncertainty helped Chicago March wheat to close about two percent higher. Minneapolis spring wheat did not follow suit. It focused on the Canadian railways’ plan to focus resources on shipping to the West Coast rather than to the U.S. March Minneapolis closed down 0.83 percent.
But all three wheat contracts closed up in the new crop December contract, on worries about weather
State reports on the U.S. winter wheat crop Monday showed a decline in condition ratings in the southern Plains, although the conditions are generally still better than last year at this time.
Australian wheat production is forecast to fall to 24.8 million in 2014-15 from 27.0 million in 2013/14.
The Australian Bureau of Agricultural, Resource Economics and Sciences expects wheat acreage will rise two percent but yields should return to average levels after strong yields in the last crop. Also parts of the eastern grain growing regions are suffering from drought. If that continues into the wheat growing season then production would be further threatened.
Gains in hard red winter wheat lagged Chicago on forecasts for much-needed moisture in the southern Plains this week.
Corn rose with the support from wheat, concerns about Ukraine, which is the world’s third largest corn exporter, and the forecasts of smaller corn production in South America.
Informa cut its Brazilian corn estimate to 65.45 million tonnes, down from 65.55 million tones.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2014 440.70 +12.90 +3.02%
Canola May 2014 448.90 +11.70 +2.68%
Canola Jul 2014 458.60 +11.50 +2.57%
Canola Nov 2014 475.10 +11.00 +2.37%
Canola Jan 2015 482.60 +10.80 +2.29%
Milling Wheat Mar 2014 200.00 -1.00 -0.50%
Milling Wheat May 2014 205.00 +5.00 +2.50%
Milling Wheat Jul 2014 205.00 +5.00 +2.50%
Durum Wheat Mar 2014 245.00 unch 0.00%
Durum Wheat May 2014 249.00 unch 0.00%
Durum Wheat Jul 2014 250.00 unch 0.00%
Barley Mar 2014 126.50 unch 0.00%
Barley May 2014 128.50 unch 0.00%
Barley Jul 2014 128.50 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Mar 2014 1418 +10.75 +0.76%
Soybeans May 2014 1423 +13.75 +0.98%
Soybeans Jul 2014 1396.5 +15 +1.09%
Soybeans Aug 2014 1345 +14.25 +1.07%
Soybeans Sep 2014 1247.75 +12 +0.97%
Soybeans Nov 2014 1181.25 +9.75 +0.83%
Soybean Meal Mar 2014 458.8 -2.5 -0.54%
Soybean Meal May 2014 449.7 -0.8 -0.18%
Soybean Meal Jul 2014 437.3 +0.5 +0.11%
Soybean Oil Mar 2014 43.46 +1.35 +3.21%
Soybean Oil May 2014 43.71 +1.33 +3.14%
Soybean Oil Jul 2014 43.81 +1.27 +2.99%
Corn Mar 2014 476.75 +12.75 +2.75%
Corn May 2014 484.25 +13.75 +2.92%
Corn Jul 2014 488.25 +13.5 +2.84%
Corn Sep 2014 485.25 +11.25 +2.37%
Corn Dec 2014 486.5 +10 +2.10%
Oats Mar 2014 542 +13.5 +2.55%
Oats May 2014 493.5 +11 +2.28%
Oats Jul 2014 411 -4.5 -1.08%
Oats Sep 2014 355.75 -3 -0.84%
Oats Dec 2014 346.5 -6 -1.70%
Wheat Mar 2014 639.75 +13 +2.07%
Wheat May 2014 643.5 +12 +1.90%
Wheat Jul 2014 647 +11.25 +1.77%
Wheat Sep 2014 654.5 +11.25 +1.75%
Wheat Dec 2014 666.75 +11.5 +1.76%
Minneapolis
Spring Wheat Mar 2014 690 -5.75 -0.83%
Spring Wheat May 2014 685.5 +13 +1.93%
Spring Wheat Jul 2014 683.75 +12 +1.79%
Spring Wheat Sep 2014 689.25 +9.5 +1.40%
Spring Wheat Dec 2014 699 +10.5 +1.53%
Kansas City
KCBT Red Wheat Mar 2014 704.25 +3 +0.43%
KCBT Red Wheat May 2014 709.5 +9.5 +1.36%
KCBT Red Wheat Jul 2014 702.25 +7.5 +1.08%
KCBT Red Wheat Sep 2014 707.75 +8 +1.14%
KCBT Red Wheat Dec 2014 719.25 +8.5 +1.20%
Light crude oil nearby futures in New York dropped $1.59 at $103.33 US per barrel.
The Canadian dollar at noon was 89.98 cents US, down from 90.16 cents the previous trading day. The U.S. dollar at noon was $1.1114 Cdn.
The reduced tensions over Ukraine lifted stock markets and weakened crude oil.
At about 2:30 CST he TSX composite was trading up 84.38 points or 0.59 percent at 14,297.12
The Dow was trading up 1.47 percent, S&P 500 was up 1.56 percent and the Nasdaq was up 1.78 percent.
