Canola futures gained ground for the second consecutive day as Malaysian flooding and the related impact on palm oil production bolstered the vegetable oil market.
March canola on ICE Futures Canada increased $3.80 to close at $443.40 per tonne.
Soybean oil futures in Chicago closed slightly higher, gaining .18 cents to finish at 33.07 cents per pound.
Heavy rains and flooding in Malaysia and southern Thailand over the last two weeks have pushed palm oil prices higher. Traders expect the flooding to delay the palm oil harvest in Malaysia, the second largest palm oil producer after Indonesia. Forecasters expect heavy rains to persist into the new year.
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Australian farmers are forecast to grow slightly more canola and barley this year, while wheat production may dip, according to the latest estimates from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).
Palm oil futures hit an eight-week high yesterday.
Soybean futures in Chicago dropped 4.75 cents, settling at $10.44 per bushel for March delivery. Beans opened the day higher but finished down. Reuters reported that brokers were exiting long positions prior to the end of 2014, pushing soybeans lower.
Ample rainfall and good growing conditions in Argentina also weighed on the soybean market.
Wheat continued its turbulent ride, with the March contract dropping 13.5 cents to settle at $6.02 in Chicago. Wheat futures gained nearly $1 per bu. from late November to just before Christmas, as worries over Russian export policies drove the market higher.
The Russians said yesterday they would impose duties of no less than $43 US per tonne, beginning Feb. 1 and ending June 30, according to Reuters. Russian officials hope the restrictions will lower bread prices, which have risen as the value of the ruble plummeted this fall.
Corn also lost on the day, with March futures dropping 6.25 cents to finish at $4.065 per bu.
U.S. Corn futures have gained more than 60 cents a bu. since early October, thanks to robust export demand.
U.S. corn export sales in the week ended Dec. 18 hit a 10-week high of 1.7 million tonnes, above trade forecasts for 500,000 to 800,000 tonnes.
Light crude oil nearby futures in New York rose 51 cents to US$54.12 per barrel.
The Canadian dollar at noon was US86.21 cents, up from 85.97 cents the previous trading day. The U.S. dollar at noon was C$1.1599.
ICE Futures Canada, dollars per tonne
Canola Jan 2015 458.40 +4.80 +1.06%
Canola Mar 2015 443.40 +3.80 +0.86%
Canola May 2015 437.10 +1.90 +0.44%
Canola Jul 2015 434.10 +0.90 +0.21%
Canola Nov 2015 425.00 +0.60 +0.14%
Milling Wheat Mar 2015 228.00 -3.00 -1.30%
Milling Wheat Jul 2015 233.00 -4.00 -1.69%
Durum Wheat Mar 2015 380.00 unch 0.00%
Durum Wheat May 2015 370.00 unch 0.00%
Durum Wheat Jul 2015 360.00 unch 0.00%
Barley Mar 2015 177.00 unch 0.00%
Barley May 2015 179.00 unch 0.00%
Barley Jul 2015 181.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jan 2015 1037.75 -4 -0.38%
Soybeans Mar 2015 1044 -4.75 -0.45%
Soybeans May 2015 1050.5 -5.5 -0.52%
Soybeans Jul 2015 1056.5 -5.25 -0.49%
Soybeans Aug 2015 1054.75 -5 -0.47%
Soybeans Sep 2015 1035.25 -4.75 -0.46%
Soybean Meal Jan 2015 369.5 -7.9 -2.09%
Soybean Meal Mar 2015 353.7 -4.6 -1.28%
Soybean Meal May 2015 346.3 -3.8 -1.09%
Soybean Oil Jan 2015 32.89 +0.1 +0.30%
Soybean Oil Mar 2015 33.07 +0.14 +0.43%
Soybean Oil May 2015 33.27 +0.13 +0.39%
Corn Mar 2015 406.5 -6.25 -1.51%
Corn May 2015 415 -6.25 -1.48%
Corn Jul 2015 421.75 -6.25 -1.46%
Corn Sep 2015 424.75 -6 -1.39%
Corn Dec 2015 430.75 -6 -1.37%
Oats Mar 2015 305 +1.75 +0.58%
Oats Jul 2015 310.5 +0.75 +0.24%
Oats Sep 2015 308.5 +0.5 +0.16%
Oats Dec 2015 306.75 unch 0.00%
Wheat Mar 2015 602 -13.5 -2.19%
Wheat May 2015 606 -13 -2.10%
Wheat Jul 2015 608 -12.25 -1.98%
Wheat Sep 2015 614.75 -12.5 -1.99%
Wheat Dec 2015 625.25 -12.25 -1.92%
Minneapolis
Spring Wheat Mar 2015 627.25 -10 -1.57%
Spring Wheat May 2015 634.75 -9.5 -1.47%
Spring Wheat Jul 2015 642.75 -9.25 -1.42%
Spring Wheat Sep 2015 648.75 -9.25 -1.41%
Spring Wheat Dec 2015 656.75 -8.25 -1.24%
Kansas City
Hard Red Wheat Mar 2015 636 -11.5 -1.78%
Hard Red Wheat May 2015 640 -11 -1.69%
Hard Red Wheat Jul 2015 644.75 -11.25 -1.71%
Hard Red Wheat Sep 2015 654.75 -10.75 -1.62%
Hard Red Wheat Dec 2015 666.25 -10.25 -1.52%
