Canola futures bounced back a little on Wednesday after a week long decline that saw prices drop $25 per tonne between Jan. 6 and Jan. 12.
Tuesday’s bearish U.S. Department of Agriculture report still hung over the market and corn was again down.
But soybeans were more solid and rallied late in the day to close slightly higher.
Canola was supported by farmers who closed bin doors as country prices fell to $8 per bushel. Routine exporter and crusher buying also helped the market.
A stronger Canadian dollar and continued good growing weather in South America limited gains.
January canola, which is in delivery mode, closed at $393.20 per tonne, up $2.70 on no trades and no open interest. The January contract expires on Thursday
Most actively traded March rose $2.70 to close at $391.20 on 7,205 trades.
May also rose $2.70 to close at $398.40 on 623 trades.
The Bank of Canada at noon Wednesday said the Canadian dollar was worth 96.88 cents US, up from 96.39 cents the previous day. The U.S. dollar was worth $1.0322 Cdn.
The Winnipeg January barley contract was steady at $156.50 with no trades and no open interest. March was also unchanged at $153 on 11 trades. May was unchanged at $158.30 on no trades.
Chicago March soybeans, the most active month, rose 14.5 cents to $9.925 US per bushel.
Light crude oil in New York for February delivery fell to $79.65 US per barrel, down $1.14.
Chicago March corn fell 8.5 cents to 3.84 per bu. on fall out from Tuesday’s USDA report that increased the size of the corn crop to a record. Analysts had expected the department would reduce the crop to account for fields not harvested before winter set in.
Wheat ended firm after falling on Tuesday.
Commodities in general recovered a little on Wednesday after being shaken by further monetary tightening announced on Tuesday. China is worried about an overheated economy and the threat of inflation.
