Tuesday came and the memory of last week’s market rout went further from the mind of the American markets, allowing relief to continue to keep the Canadian canola market firm. There were no signs of last week’s weakness spreading.
Winnipeg canola futures edged slightly higher in most months, with November up $1.10 to $555.20 and January up $2.70 per tonne to $563.40.
Canola was mostly following strength in Chicago soybean and soyoil markets, the two commodities that lead the vegoil complex. Traders are still hesitant about the canola crop, with many questions still lingering about the amount of acreage across Western Canada and North Dakota, the lateness of the crop and its quality.
While there are many worries about the state of the crop, many parts of the Prairies appear to have a good crop coming and some traders believe the stories about unseeded acres and late seeded crops have been getting too much play.
But all the main agricultural futures markets of North America seemed to be breathing sighs of relief, with no signs of the wrenching breakdowns that corn and wheat experienced last week after the U.S. Department of Agriculture reports that bumped up both corn seeded acreage and corn stocks.
Corn surged higher and wheat gained strongly, with positive demand signals in the export market attributed as the cause by traders looking for a reason for the end of the slump, which had dragged corn and wheat down to three-and-a-half month lows.
Soybeans and soyoil escaped the mayhem last week, but the continued solidity in that market on Tuesday cheered vegoil traders and allowed them to slip into summer less anxious than during the last few weeks, since the early June highs of many markets.
Winnipeg (per tonne)
Canola Jul 11 $570.20, up $8.70
Canola Nov 11 $555.20, up $1.10
Canola Jan 12 $562.60, up $1.90
Canola Mar 12 $567.40, up $1.90
Western Barley Jul 11 $207.00, unchanged
Chicago (per bushel)
Soybeans Jul 11 $13.3225, up 10.00 cents
Soybeans Aug 11 $13.2225, up 9.50
Soybeans Nov 11 $13.1800, up 5.50
Corn Jul 11 $6.8050, up 39.75
Corn Dec 11 $6.1250, up 15.75
Oats Jul 11 $3.3950, unchanged
Oats Dec 11 $3.5300, unchanged
Minneapolis (per bushel)
Spring Wheat Jul 11 $8.6925, up 38.25 cents
Spring Wheat Sep 11 $8.3300, up 28.50
Spring Wheat Dec 11 $8.3125, up 26.75
