Canola futures edged higher Wednesday, as traders remain concerned about the amount of canola that will be seeded this year.
Wheat fell on lingering pressure from the weekend announcement that Russia will resume exporting as of July 1. Russian sellers won a tender to supply Lebanon with a bid well below the world price. The export ban had kept Russian domestic prices well below the world price but they are rapidly rising now that the restrictions are about to be lifted.
Wheat was also pressured lower by rain falling in Western Europe, which had been suffering from drought.
Corn futures rose on slow planting progress and expectations that farmers will not be able to see all the acres to corn that they had hoped. Soybeans rose for the same reason.
Tens of millions of acres in the U.S. and Canada are not yet seeded and it is June 1.
American analysts and brokerage house Linn Group today lowered its forecast of U.S. 2011 corn plantings to 87.233 million acres, from its mid month estimate of 89.538 million.
The USDA March forecast is 92.178 million acres.
Linn lowered its soybean plantings estimate to 74.894 million acres, from 75.094 million. USDA’s report expected 76.609 million acres.
It put non-durum spring wheat at 13.827 million acres, from 14.027 million in mid-May. The March USDA forecast was 14.427 million.
The U.S. Department of Agriculture’s Foreign Agriculture Services today forecast China would import 58 million tonnes of soybeans in the new crop year, up from 54.5 million in the current year.
It forecast China would grow 14.45 million tonnes of soybeans, down from 15.2 million last summer.
Saskatchewan crop insurance has extended its deadlines for coverage to allow farmers in that province more time to sow the crop.
While corn and oilseeds were supported by bullish price news, disappointing news on the economic front generally cooled the market.
U.S. private sector hired far fewer workers than expected in May. A national employment report published by payroll giant Automatic Data Processing found only 38,000 people were hired last month, down from the 190,000 that economists expected. Also, output in the U.S. manufacturing sector slowed to its lowest level since 2009.
Auto sales fell in May on the shortage of Japanese vehicles and consumers’ rejection of increased car prices.
Stock markets fell as investors chose safe haven U.S. Treasuries over the riskier equities and commodities markets.
Winnipeg (per tonne)
Canola Jul 11 $590.90, up $1.40
Canola Nov 11 $594.60, up 50 cents
Canola Jan 12 $602.40, up 20 cents
Canola Mar 12 $609.10, up 60 cents
The previous day’s best basis was $15 under the July contract according to ICE Futures Canada in Winnipeg.
The July contract’s 14-day Relative Strength Index was 59. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Jul 11 $205, unchanged
Chicago (per bushel)
Soybeans Jul 11 $13.8625, up 10.25 cents
Soybeans Aug 11 $13.82, up 10.0
Soybeans Nov 11 $13.7475, up 11.25
Corn Jul 11 $7.585, up 11.0
Corn Dec 11 $6.795, up 6.5
Oats Jul 11 $3.83, down 3.0
Oats Dec 11 $3.99, down 2.25
Minneapolis (per bushel)
Spring Wheat Jul 11 $10.055, down 19.5 cents
Spring Wheat Sep 11 $9.7525, down 12.5
Spring Wheat Dec 11 $9.7625, down 12.25
Light crude oil nearby futures in New York fell $2.41 to $100.29 US per barrel.
The Canadian dollar at noon was $1.0294 US, down from $1.0322 the previous trading day. The U.S. dollar at noon was 97.14 cents Cdn.
The Toronto Stock Exchange composite index closed down 275 points, or 1.99 percent, at 13,527.88.
The Standard and Poor’s 500 index fell 30.66 points, or 2.28 percent, to 1,314.54.
