Weather problems in Argentina and Asia helped support canola prices Tuesday.
Stronger crude oil values and a rising stock market also added to the upbeat tone.
Most traded March canola closed at $526.70 per tonne, up $2.40. The January contract is in delivery mode.
A better than expected monthly gauge of U.S. manufacturing activity lifted stocks and crude rose on worries about Iran’s threats to close tanker traffic in the Persian Gulf if its nuclear facilities are threatened.
Strong domestic crushing buying supported canola, but contracts closed off the day’s highs as elevator companies stepped in to hedge the canola farmers are selling.
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• Crop markets remain fixed on South American weather. Cropcast, an influential weather information service, cut its forecasts for Argentine corn and soybean production because of the hot, dry weather.
It lowered its weekly estimate of the Argentine corn crop by three million to 24.5 million tonnes. Its soybean outlook dropped by 1.6 million to 49.82 million tonnes.
The U.S. Department of Agriculture forecasts 2011-12 Argentine corn production at 29 million tonnes and soybean production at 52 million.
Rain is falling is central Brazil, but is not expected to reach the dry southern part of the country’s soy belt.
• Oilseeds also got a lift from worries that the La Nina will deliver too much rain in Malaysia and Indonesia, the two leading palm oil producers.
A heavy rain forecast for the coming weekend could cause flooding in palm producing areas of Malaysia.
• The Canadian Oilseed Processors Association said members were busy at the end of the year, crushing 138,850 tonnes of canola in the week ending Dec. 28, up almost three percent from the week before. That represents a crush capacity of almost 95 percent.
• Rain fell in the dry U.S. hard red winter wheat region of the southern plains.
Winnipeg (per tonne)
Canola Jan 12 $519.20, down $6.60 (-1.26%)
Canola Mar 12 $526.70, up $2.40 (+0.46%)
Canola May 12 $530.70, up $3.50 (+0.66%)
Canola Nov 12 $511.60, up $3.30 (+0.65%)
The previous trading day’s best basis was $10.07 per tonne off the January contract, said the ICE Futures Canada exchange in Winnipeg.
The January contract’s 14-day Relative Strength Index was 62.
Western Barley Mar 12 $217.00, unchanged
Chicago (per bushel)
Soybeans Jan 12 $12.1825, up 19.75 cents (+1.65%)
Soybeans Mar 12 $12.275, up 19.75 (+1.64%)
Soybeans Nov 12 $12.19, up 14.75 (+1.22%)
Corn Mar 12 $6.585, up 12.0 (+1.86%)
Corn Dec 12 $5.90, up 3.75 (+0.64%)
Oats Mar 12 $2.985, down 11.0 (-3.55%)
Oats May 12 $3.0325, down 10.0 (-3.19%)
Minneapolis (per bushel)
Spring Wheat Mar 12 $8.4425, down 5.25 cents (-0.62%)
Spring Wheat May 12 $8.2825, up 3.0 (+0.36%)
Spring Wheat Dec 12 $8.055, up 8.0 (+1.00%)
Nearby light crude oil in New York rose $4.13 to settle at $102.96 a barrel.
The Canadian dollar at noon was 99.11 cents US, up from 98.33 the previous trading day. The U.S. dollar at noon was $1.0090 Cdn.
In a preliminary tally, the Toronto Stock Exchange composite closed up 253.34 points, or 2.12 percent, at 12,208.43.
The Standard and Poor’s 500 was up 19.18 points, or 1.53 percent, at 1,276.78.
