Canola futures were mostly lower on Wednesday due to weaker soybeans and crude oil and a stronger loonie.
November made a tiny gain, closing at $529.30 per tonne, up 30 cents, but January closed at $530.70, down $3.30.
Traders are rolling out of the November contract into January.
The stronger loonie and yesterday’s gains in canola caused crushers to back down from the market today.
• Chicago grains and crude oil were generally down on uncertainty about the outcome of a crucial meeting in Europe that is supposed to deliver a robust program to deal with the Greek debt crisis.
• Wheat and corn values were also pressured down by news that Russia had sold wheat to Egypt at a low price and Ukraine had sold cheap corn to Japan.
• Another factor in the market was the two day plunge in the shares of commodities and futures brokerage MF Global Ltd.
Reuters reported the company’s shares have dropped 56 percent since Monday, when Moody’s cut its debt rating to near-junk status due to its European sovereign debt exposure and its increased risk appetite.
• A cold front moving into the southern U.S. plains could bring freezing temperatures to sprouting winter wheat fields.
• A devastating slow moving flood in Thailand from tropical storms is ruining rice paddies. Thailand is the world’s biggest rice exporter and the damage is causing rice prices to rise.
Winnipeg (per tonne)
Canola Nov 11 $529.90, up $0.30 (+0.06%)
Canola Jan 12 $530.70, down $3.30 (-0.62%)
Canola Mar 12 $538.20, down $3.70 (-0.68%)
Canola May 12 $543.90, down $4.80 (-0.87%)
The previous day’s best basis widened to $10.60 under the November contract, according to ICE Futures Canada in Winnipeg.
Western Barley Dec 11 $216, unchanged
Chicago (per bushel)
Soybeans Nov 11 $12.105, down 15.0 (-1.22%)
Soybeans Jan 12 $12.1975, down 14.0 (-1.13%)
Soybeans Mar 12 $12.2925, down 14.25 (-1.15%)
Corn Dec 11 $6.3725, down 13.5 (-2.07%)
Corn Mar 12 $6.495, down 12.75 (-1.93%)
Oats Dec 11 $3.30, down 6.5 (-1.93%)
Oats Mar 12 $3.40, down 7.0 (-2.02%)
Minneapolis (per bushel)
Spring Wheat Dec 11 $9.1025, down 6.25 (-0.68%)
Spring Wheat Mar 12 $8.455, down 9.5 (-1.11%)
Spring Wheat May 12 $8.2825, down 7.75 (-0.93%)
Light crude oil nearby futures in New York fell $2.97 to $90.20 US per barrel. Weekly data showed a sharp increase in crude inventories in the United States.
The Canadian dollar at noon was 99.00 cents US, up from 98.58 cents the previous trading day. The U.S. dollar at noon was $1.0101 Cdn.
In a preliminary tally, the Toronto Stock Exchange composite index closed up 76.31 points, or 0.63 percent, at 12,186.06.
The Standard & Poor’s 500 Index closed up 12.91 points, or 1.05 percent, to 1,241.96.
