Jan 21 (Reuters) – ICE Canada canola futures rose on Wednesday, with the March contract setting a six-month high as the Canadian dollar tumbled to its weakest since April 2009, making canola more attractive on the export market, traders said.
The currency fell after the Bank of Canada shocked financial markets with an interest rate cut aimed at countering the Negative economic impact of cheap crude oil prices.
The bank cut the overnight rate to 0.75 percent from one percent.
Farmer selling was noted in forward months including May and July, traders said.
Most-active March canola rose $3.10 to $458.80 per tonne on volume of 14,379 contracts.
May canola increased $2.20 to $449.80 per tonne on volume of 10,531 contracts.
U.S. soybean futures posted a mild rebound on a round of bargain buying after hitting their lowest since late October a day earlier, traders said.
Strength in soymeal futures lent support but gains were limited due to easing concerns about weather cutting into harvest yields in South American countries.
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U.S. grains: Soybean futures set two-week high on US weather worry, soyoil rally
Chicago Board of Trade soybean futures touched a two-week high on Friday on worries that heat may threaten U.S. crops and expectations that the country’s biofuel policy would boost demand for soyoil, analysts said.
CIF and FOB values for soymeal rose on Wednesday for supplies delivered during February, with traders saying higher-than-expected prices for South American supplies raised export interest in U.S. offerings.
Soyoil futures dropped, pressured by technical selling.
The benchmark March soyoil futures contract turned lower
after failing to hold support above its 100-day moving average during overnight trading. It also dropped below its 30-day, 40-day and 50-day moving averages during the session.
A cold front has finally hit Brazil’s southeast and center-west agricultural areas, Somar meteorologists said, ending at least 20 days of unseasonably hot, dry weather.
U.S. wheat futures closed mostly lower, with the Minneapolis and Kansas City markets leading the way down as inter-market spreads corrected and the Canadian dollar plunged, traders said.
MGEX spring wheat fell as the Canadian dollar tumbled to its weakest since April 2009 after the Bank of Canada shocked financial markets with an interest rate cut. The currency move makes Canadian spring wheat more competitive than U.S. supplies.
MGEX spring wheat was also pressured by deliverable stocks in Duluth, Minnesota, rising to 18.1 million bushels, from 16.2 million a week earlier.
The premium for MGEX March spring wheat over K.C. March hard red winter wheat fell to 8-3/4 cents per bushel, retreating from a one-year high of 11-3/4 cents set a day earlier.
Storms crossing the southern United States this week should bring welcome moisture to a portion of the Plains hard red winter wheat crop. Winterkill risks remain low, the Commodity Weather Group said in a daily note.
CBOT wheat closed mostly lower but values were underpinned by bargain-buying and worries about renewed hostilities in the Black Sea grain region. Ukraine’s president accused Russia of sending 9,000 troops to back separatist rebels in the east of his country.
Corn futures reversed from an earlier one-week high to turn lower, pressured by ample global grain supplies and mostly favourable growing conditions for corn in South America, traders said.
Volume was light, with an estimated 170,000 trades the smallest since Jan. 2. Open interest has increased to the largest since November, with 1,908 new positions during the previous session of sharply higher prices suggesting investors were making new long or bullish bets, CME Group data showed.
U.S. cash corn markets were steady to higher as farmer sales were limited on hopes for higher prices later this year. Bids jumped as much as eight cents per bushel at an ethanol plant in Illinois.
Light crude oil nearby futures in New York were up $1.31 to US$47.78 per barrel.
The Canadian dollar at noon was US80.81cents, down from 82.75 cents the previous trading day. The U.S. dollar at noon was C$1.2374.
In unofficial tallies —
The Toronto Stock Exchange composite jumped 251.98 points or 1.76 percent to 14,560.42. The Toronto market was generally happy about the interest rate cut.
The Standard & Poor’s 500 index rose nine points, or 0.5 percent, to close at 2,032 Wednesday. The Dow Jones industrial average climbed 39 points, or 0.2 percent, to 17,554. The Nasdaq gained 12 points, or 0.3 percent, to 4,667.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2015 458.80 +3.10 +0.68%
Canola May 2015 449.80 +2.20 +0.49%
Canola Jul 2015 443.00 +2.10 +0.48%
Canola Nov 2015 433.60 +3.20 +0.74%
Canola Jan 2016 435.90 +3.50 +0.81%
Milling Wheat Mar 2015 214.00 -3.00
Milling Wheat May 2015 217.00 -3.00
Milling Wheat Jul 2015 220.00 -3.00
Durum Wheat Mar 2015 361.00 unch 0.00%
Durum Wheat May 2015 351.00 unch 0.00%
Durum Wheat Jul 2015 341.00 unch 0.00%
Barley Mar 2015 195.00 unch 0.00%
Barley May 2015 197.00 unch 0.00%
Barley Jul 2015 199.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Mar 2015 983.5 +1.5 +0.15%
Soybeans May 2015 989.5 +1.75 +0.18%
Soybeans Jul 2015 994.5 +1.5 +0.15%
Soybeans Aug 2015 994 +1.5 +0.15%
Soybeans Sep 2015 978 +0.5 +0.05%
Soybeans Nov 2015 965.75 -1 -0.10%
Soybean Meal Mar 2015 330.5 +4 +1.23%
Soybean Meal May 2015 322.7 +3.4 +1.06%
Soybean Meal Jul 2015 321.3 +2.7 +0.85%
Soybean Oil Mar 2015 32.41 -0.43 -1.31%
Soybean Oil May 2015 32.58 -0.42 -1.27%
Soybean Oil Jul 2015 32.76 -0.41 -1.24%
Corn Mar 2015 388 -2.25 -0.58%
Corn May 2015 395.75 -2 -0.50%
Corn Jul 2015 402.5 -1.5 -0.37%
Corn Sep 2015 408.25 -1.5 -0.37%
Corn Dec 2015 415.5 -1.5 -0.36%
Oats Mar 2015 290.75 +0.5 +0.17%
Oats May 2015 294 +1.25 +0.43%
Oats Jul 2015 298.75 +1.75 +0.59%
Oats Sep 2015 300.5 +1.5 +0.50%
Oats Dec 2015 297.75 unch 0.00%
Wheat Mar 2015 536.75 -0.25 -0.05%
Wheat May 2015 540 +0.25 +0.05%
Wheat Jul 2015 543.5 -0.75 -0.14%
Wheat Sep 2015 551.25 -1 -0.18%
Wheat Dec 2015 562.5 -1.25 -0.22%
Minneapolis
Spring Wheat Mar 2015 581 -8.5 -1.44%
Spring Wheat May 2015 587.25 -8.75 -1.47%
Spring Wheat Jul 2015 595 -8.5 -1.41%
Spring Wheat Sep 2015 602.25 -8 -1.31%
Spring Wheat Dec 2015 611 -9 -1.45%
Kansas City
Hard Red Wheat Mar 2015 572.25 -5.5 -0.95%
Hard Red Wheat May 2015 576.25 -5 -0.86%
Hard Red Wheat Jul 2015 579.5 -4 -0.69%
Hard Red Wheat Sep 2015 590.25 -4.5 -0.76%
Hard Red Wheat Dec 2015 604.75 -3.75 -0.62%
