Euro debt woes again weight on canola

Canola was higher in the morning Wednesday, but closed lower in a day when traders continued to be spooked by the fall out from elections in France and Greece and implications for the European debt crisis.

July canola closed at $618.40, down $1.20.

November settled at $570.30, down $2.00.

The drop was partly offset by the weaker loonie, which is now trading at less than par.

Soybeans and corn fell on long liquidation and the stronger U.S. dollar. Spring wheat was also down. China bought more corn this week, about 500,000 tonnes, mostly for delivery in 2012-13.

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• Later in the day, concern about the Greek political situation and its debt crisis moderated. It appears the next bailout payment of $6.8 billion will go through to Greece.

• Reuters polled 18 analysts for their forecasts of end of year corn stocks.

The average for the old crop was an exceptionally tight 749 million bushels. But with a large crop in the making, the average forecast for 2012-13 carryout was up almost a billion bu. to 1.714 billion bu., the biggest stockpile in six years.

Analysts said with the new crop projected at close to 14.5 billion bu. up 1.5 billion bushels or 10 percent over the current record, would cause the build up in supplies and pressure corn prices with several analysts pegging December corn falling to $4 this fall, down from about $5.16 today if the good weather continues.

• Overnight temperatures will drop below freezing in parts of the Canadian Prairies on Thursday-Friday but damage is expected to be light. Rain on Thursday in Saskatchewan and Manitoba is expected to give way to warm, sunny weather through the weekend.

Winnipeg (per tonne)

Canola May 12 $623.40, down $1.20 -0.19%

Canola Jul 12 $618.40, down $1.20 -0.19%

Canola Nov 12 $570.30, down $2.00 -0.35%

Canola Jan 13 $574.00, down 41.90 -0.33%

The best basis in the par region on the previous day was $4 over the July contract, according to ICE Futures Canada.

Western Barley May 12 $242.00, unchanged

Western Barley Jul 12 $237.00, unchanged

Milling Wheat Oct 12 $243.00, unchanged

Milling Wheat Dec 12 $248.00, unchanged

Milling Wheat Mar 13 $257.00, unchanged

Durum Wheat Oct 12 $275.60, unchanged

Durum Wheat Dec 12 $280.10, unchanged

Durum Wheat Mar 13 $286.70, unchanged

Barley Oct 12 $184.00, unchanged

Barley Dec 12 $188.00, unchanged

Barley Mar 13 $191.00, up $1.50 +0.79%

Chicago (per bushel)

Soybeans May 12 $14.2775, down 10.0 cents-0.70%

Soybeans Jul 12 $14.3025, down 8.0 -0.56%

Soybeans Nov 12 $13.335, down 7.0 -0.52%

Corn May 12 $6.4125, down 24.75 -3.72%

Corn Jul 12 $6.0725, down 15.75 -2.53%

Corn Dec 12 $5.1675, down 11.25 -2.13%

Oats May 12 $3.32, down 0.25 -0.08%

Oats Jul 12 $3.36, down 1.75 -0.52%

Oats Dec 12 $3.45, down 0.5 -0.14%

Minneapolis (per bushel)

Spring Wheat May 12 $7.3125, down 0.5 cents -0.07%

Spring Wheat Jul 12 $7.3025, down 2.25 -0.31%

Spring Wheat Sep 12 $7.335, down 2.75 -0.37%

Spring Wheat Dec 12 $7.415, down 2.75 -0.37%

Light crude oil in New York closed at $96.81 per barrel, down 20 cents. A weekly read of U.S. oil stocks showed crude inventory increased, but stocks of products such as gasoline fell more than expected.

The Canadian dollar noon rate fell to 99.85 cents US, down from $1.0003 the previous trading day.

The U.S. dollar at noon was $1.0015 Cdn.

In unofficial early tallies:

Toronto Stock Exchange S&P/TSX composite index closed down 29.73 points, or 0.25 percent, at 11,675.01.

The Dow Jones industrial average dropped 96.88 points, or 0.75 percent, to close at 12,835.21.

The Standard & Poor’s 500 Index shed 9.14 points, or 0.67 percent, to finish at 1,354.58.

The Nasdaq Composite Index lost 11.56 points, or 0.39 percent, to close at 2,934.71.