Canola, soybeans and corn rose Tuesday, but wheat was mostly down slightly.
Canola was supported by light fund buying and stronger soybean prices.
The canola market continues to be pushed and pulled by the uncertainty of spring weather. Under ideal conditions, analysts believe Canadian farmers would plant close to 20 million acres to the oilseed, but saturated soil, a heavy snowpack and forecasts of a cool spring lead many to believe that seeded acreage will be far less.
Soybeans climbed on new fund buying and on concern Brazil might be getting too much rain at harvest. On the other hand, Oil World increased the size of its forecast for Argentina’s soy crop by 500,000 tonnes.
Fund buying also lifted corn, as did stronger ethanol production profit margins.
Stronger crude oil prices supported crop prices generally. A report that a Shi’te cleric in Saudi Arabia had been detained by the government led to worries that the Middle East’s largest oil producer would be the next Arab country to face unrest. Unrest in Tehran, Iran, the second largest oil producer in the Middle East added to the tensions.
The Bank of Canada kept its lending rate steady.
Analysts UkrAgroConsult said Ukraine’s rapeseed harvest would likely be up 36 percent over last year thanks to less winter damage. It expects the combined winter and spring crop to be two million tonnes, up from 1.47 million last year.
Wheat was pressured by the improved outlook for China’s crop and on a forecast for showers in parts of the U.S. southern plains.
Winnipeg
Canola Mar $577.70 Cdn per tonne up $5.00
Canola May $582.60 up $3.90
Canola Jul $589.80 up $4.00
Canola Nov $571.50 up $2.30
The previous day’s best basis was $18.50 under the March contract according to ICE Futures Canada in Winnipeg.
The March contract 14-day Relative Strength Index was 46. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Mar $194.00 unchanged
Western Barley May $205.00 unchanged
Chicago
Soybeans Mar $13.675 US per bu., up 10.25 cents
Soybeans May $13.7525 up 10.5 cents
Corn Mar $7.2725 per bu. up 4.75 cents
Corn May $7.355 up 4.5 cents
Oats Mar $3.80 per bu. up 8.75 cents
Oats May $3.895 up 8.5 cents
Minneapolis
Spring Wheat Mar $9.315 per bu. up 0.75 cents
Spring Wheat May $9.395 down 1.5 cents
Spring Wheat Dec $9.545 down four cents
Light crude oil at New York rose $2.66 per barrel to $99.63.
The Canadian dollar at noon was $1.0264 US, down from $1.0268 the previous trading day. The U.S. dollar at noon was 97.43 cents Cdn.
The Toronto Stock Exchange composite index fell 13.65 points to 14,122.85.
The Standard & Poor’s 500 Index fell 20.89 points at 1,306.33.
