Market roundup: Canola futures edge higher with rising market

Canola and most other crop futures rose Tuesday with the oilseed supported by crusher buying and stronger soybean futures.

March canola rose $1.30 at $468.70 per tonne.

May canola gained 80 cents to close at $477 per tonne.

Good profit margins at canola processors supported the buying.

Resistance for the March contract was again noted at $470 per tonne, a level the market has failed to break through for three sessions in a row.

Soybeans edged higher supported by ideas that tie-ups at Brazilian ports will keep some buyers returning to the U.S. for supply.

The amount of U.S. soybeans inspected for export last week at 1.76 million tonnes topped expectations and was the most since November.

Gains were limited by a monthly report on U.S. soybean crush that came in lower than expected.

The lineup of Brazil export loadings of soybeans and corn is double that of a year ago as rains delayed shipments, particularly for Paranaguá port, and a weak real currency boosted demand.

There are 163 ships waiting to load soy and corn at Brazilian ports, according to data from shipping agency Williams compiled by Reuters, with total grains volume estimated at 9.73 million tonnes.

Corn futures rose about one percent on bargain buying and short covering.

Last week, corn fell 1.8 percent on ample supply.

Wheat futures on the Chicago Board of Trade rose on technical buying and short covering.

The U.S. CFTC’s supplemental commitments-of-traders report showed funds as of Feb. 9 held the second-largest net short position in CBOT wheat since 2006, leaving the market vulnerable to bouts of short-covering.

The confusion in Egypt over tolerances for trace amounts of fungus spread as the country rejected a shipment of Canadian spring wheat due to ergot fungus.

It was the latest in a series of rejections that have caused serious concerns over Egypt’s tough new quality rules and disrupted the country’s massive wheat imports.

Click here for the story on the rejection of the Canadian shipment

India’s agriculture ministry released its latest forecasts for winter crop production. It’s number for wheat is much higher than what the trade and wheat users were expecting.

Many in the trade have been talking about a wheat crop less than 85 million tonnes due to reduced acreage and stressful weather, but the government surprisingly pegged its estimate at almost 94 million tonnes.

Last year’s wheat crop was the smallest in five years, at 86.5 million tonnes due largely to rain at harvest that caused wide spread damage.

Click here for more on India’s crops.

Crude oil rose early in the day on news that Russia and Saudi Arabia and other members of OPEC were meeting about limiting oil production but then fell when it became clear they had agreed only to freeze production at January levels. Also Iran was not part of the talks and it wants to increase production after being locked out of the market for years under sanctions related to its nuclear program.

Light crude oil nearby futures today in New York closed down 40 cents at US$29.04 per barrel.

The Canadian dollar at noon was US72.15 cents, down from 72.28 cents the previous trading day. The U.S. dollar at noon was C$1.3860.

Stock investors in the U.S. lifted indexes as they bought stocks that are believed to be oversold after sharp losses this year.

The Standard & Poor’s/TSX Composite Index rose 1.4 per cent, or 173.74 points, to 12,554.98

The Dow Jones industrial average rose 220.72 points, or 1.38 percent, to 16,194.56, the S&P 500 gained 30.69 points, or 1.65 percent, to 1,895.47 and the Nasdaq Composite added 98.44 points, or 2.27 percent, to 4,435.96

Winnipeg ICE Futures Canada dollars per tonne

Canola Mar 16 468.70 +1.30 +0.28%

Canola May 16 477.00 +0.80 +0.17%

Canola Jul 16 481.30 +0.60 +0.12%

Canola Nov 16 484.10 +0.80 +0.17%

Canola Jan 17 487.30 +1.20 +0.25%

Milling Wheat Mar 16 225.00s -1.00 -0.44%

Milling Wheat May 16 228.00s -1.00 -0.44%

Milling Wheat Jul 16 232.00s -1.00 -0.43%

Durum Wheat Mar 16 317.00s unch

Durum Wheat May 16 325.00s unch

Durum Wheat Jul 16 310.00s unch

Barley Mar 16 188.00s unch

Barley May 16 192.00s unch

Barley Jul 16 194.00s unch

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

Chicago

Soybeans Mar 2016 879.75 +6.25 +0.72%

Soybeans May 2016 882.5 +5 +0.57%

Soybeans Jul 2016 887.25 +4.5 +0.51%

Soybeans Aug 2016 888.75 +5.25 +0.59%

Soybeans Sep 2016 888.25 +5 +0.57%

Soybeans Nov 2016 891 +4.75 +0.54%

Soybean Meal Mar 2016 264.8 +2.4 +0.91%

Soybean Meal May 2016 266.9 +2.5 +0.95%

Soybean Meal Jul 2016 269.1 +2.2 +0.82%

Soybean Oil Mar 2016 31.61 -0.18 -0.57%

Soybean Oil May 2016 31.84 -0.18 -0.56%

Soybean Oil Jul 2016 32.07 -0.18 -0.56%

Corn Mar 2016 363 +4 +1.11%

Corn May 2016 367.75 +3.5 +0.96%

Corn Jul 2016 372.5 +3.5 +0.95%

Corn Sep 2016 377.75 +3.75 +1.00%

Corn Dec 2016 385.75 +3.75 +0.98%

Oats Mar 2016 199.25 +2.75 +1.40%

Oats May 2016 203.5 +3.75 +1.88%

Oats Jul 2016 211.25 +1.5 +0.72%

Oats Sep 2016 216 +2.5 +1.17%

Oats Dec 2016 211.75 +4.25 +2.05%

Wheat Mar 2016 464.25 +6 +1.31%

Wheat May 2016 469 +5.25 +1.13%

Wheat Jul 2016 474 +5.5 +1.17%

Wheat Sep 2016 483.25 +6 +1.26%

Wheat Dec 2016 497.25 +6.25 +1.27%

Minneapolis

Spring Wheat Mar 2016 491.5 +6.5 +1.34%

Spring Wheat May 2016 494.75 +7.25 +1.49%

Spring Wheat Jul 2016 502.5 +7.25 +1.46%

Spring Wheat Sep 2016 512.5 +6.75 +1.33%

Spring Wheat Dec 2016 527.5 +6.75 +1.30%

Kansas City

Hard Red Wheat Mar 2016 450.75 +5.5 +1.24%

Hard Red Wheat May 2016 460 +5.75 +1.27%

Hard Red Wheat Jul 2016 470.5 +5 +1.07%

Hard Red Wheat Sep 2016 484.5 +5.75 +1.20%

Hard Red Wheat Dec 2016 505.25 +5.25 +1.05%

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