Crop futures fell on Thursday on continuing jitters about unrest in the Middle East and about the impact of $100 oil on the global economy.
Speculative money and big investment funds have retreated into investments that are considered less risky.
However, there are also arguments that grain markets still have strong fundamental support.
The U.S. Department of Agriculture on Thursday said that despite its forecast for a record large U.S. corn crop, stocks by the end of 2011-12 would recover only slightly. The stocks-to-use ratio would grow to 6.4 percent or 23.36 days from five percent or 18.25 days.
Soybean stocks were also expected to be tight.
USDA said drought in the southern plains would increase the hard red winter wheat abandonment level and limit yield. It said wheat production would fall about six percent.
Analysts question whether U.S. farmers will be able to seed as much as the USDA is forecasting.
Also weighing on oilseed prices was news from the Buenos Aires Grains Exchange that said increased its soybean crop outlook to 48.8 million tonnes, up from the previous forecast for 47.0 million tonnes, due to improved weather.
The strong Canadian dollar also weighed on canola.
Winnipeg
Canola Mar 11$565.40 per tonne down $6.60
Canola May 11$574.20 down $6.30
Canola Jul 11 $581.90 down $6.40
Canola Nov 11$560.30 down $4.30
The previous day’s best basis was $16 under the March contract according to ICE Futures Canada in Winnipeg.
The March contract 14-day Relative Strength Index was 39. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Mar 11$194 per tonne unchanged
Western Barley May 11$205 unchanged
Chicago
Soybeans Mar 11$13.1825 US per bu. down 1.75 cents
Soybeans May 11$13.2925 down 2.25 cents
Corn Mar 11$6.8575 per bu. down 5.75 cents
Corn May 11$6.965 down 5.75 cents
Oats Mar 11$3.6025 per bu. down 15 cents
Oats May 11$3.70 down 15 cents
Minneapolis
Spring Wheat Mar 11$8.9375 per bu. down 13 cents
Spring Wheat May 11$9.0575 down 13.75 cents
Spring Wheat Dec 11$9.2325 down 13.75 cents
Light crude oil at New York fell 82 cents per barrel to 97.28. Earlier in the day, it climbed as high at $103.41.
The Canadian dollar at noon was $1.0161 US, up from $1.0077 the previous trading day. The U.S. dollar at noon was 98.42 cents Cdn.
The Toronto Stock Exchange composite index fell 88.88 points to 13,867.31.
The S&P 500 fell 1.35 points to 1,306.05.
