Oilseed futures climbed on Wednesday as traders turned attention from the crisis in Japan to soggy harvest conditions in Brazil’s top soybean producing state.
Canola rose with soybeans and also found strength from the falling Canadian dollar and on good commercial and processor buying. Buyers did some bargain buying with many thinking prices had fallen too far.
But corn and wheat contineud to fall on concerns about food import demand from battered Japan.
Reuters reported that at least nine ships carrying grain and oilseeds for Japan have been told they can’t unload because of damage at port facilities. Some are still sailing to Japan and others are anchored offshore.
Also, some ship owners were considering rerouting ships to less affected ports in southern Japan.
Japan’s nuclear crisis continued as workers at the Fukushima Daiichi power plant try to cool the reactors.
Some areas of Mato Grosso, Brazil’s main soybean growing state, have received about four inches of rain this week and there are forecast that many soybean growing areas could get five to 10 inches over the next two weeks.
Reuters reported that crop forecaster Allendale said today that U.S. farmers would likely increase corn planting over last year, but seed less than the amount forecast by the United States Department of Agriculture.
It noted that wet soil in the Midwest would likely hamper the seeding season. Also, the recent deterioration in prices would cause less incentive to plant.
Current prices give a strong edge to corn over soybean. For that reason Allendale sees corn acres rising 3.5 percent over last year while soybean area would decline.
Corn plantings were seen at 91.291 million acres (USDA forecast 92 million) this spring, with soybean acreage at 77.193 million (USDA 78 million) and wheat acreage at 57.435 million (USDA 57 million).
Winnipeg (per tonne)
Canola May 11 $533.90, up $8.90
Canola Jul 11 $542.20 up $9.30
Canola Nov 11 $523, up $9
Canola Jan 12 $528, up $8.80
The previous day’s best basis was steady at $27 under the May contract according to ICE Futures Canada in Winnipeg.
The May contract 14-day Relative Strength Index was 31. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley May 11 $205 unchanged
Chicago (per bushel)
Soybeans May 11 $12.87, up 17 cents
Soybeans Jul 11 $12.9525, up 17.25 cents
Soybeans Nov 11 $12.5075, up 12.75 cents
Corn May 11 $6.165, down 19.5 cents
Corn Jul 11 $6.2375, down 18.75 cents
Oats May 11 $3.15, down 9 cents
Oats Jul 11 $3.2325, down 8.5 cents
Minneapolis (per bushel0
Spring Wheat May 11 $8.06, down 1.5 cents
Spring Wheat Jul 11 $8.1525, down 0.75 cents
Spring Wheat Dec 11 $8.295, down 2.25 cents
Light crude oil nearby futures in New York rose 80 cents to $97.98 US per barrel.
The Canadian dollar at noon was $1.0083 US, down from $1.0173 the previous trading day. The U.S. dollar at noon was 99.18 cents Cdn.
North American stock markets surged early in the day but then fell sharply on the continuing uncertainty. The TSX fell less than U.S. markets.
The Toronto Stock Exchange composite index fell 22.14 points to 13,524.82.
The Standard & Poor’s 500 Index fell 24.99 points to 1,256.88.
