Oilseeds, including canola, fell Tuesday on profit taking after Monday’s run up on the tails of rising corn. A stronger loonie also weighed on canola.
The market generally seemed to think Monday’s rally was overdone, although with poor weather again this week Midwest seeding progress is getting even further behind normal.
New crop soybeans were pressured by thoughts that seeding delays in the U.S. Midwest might cause some farmers to shift acres into soybeans and away from corn.
Wheat rose as the Wheat Quality Council began its tour of the U.S. hard red winter wheat region. It found evidence of yields lower than last year in the northeast part of Kansas. It is believed that yields will be substantially lower as they move west into areas hurt by recent freezing weather and drought.
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Chicago cattle futures regained a ground on Monday to maintain a fairly level trajectory after last week’s fall.
Spring wheat and oats also rose, likely on concerns about late seeding in Canada and North Dakota.
May canola closed at $636.20 down $5.80. November closed at $548.40, down $5.90.
The European Union is expected to harvest 20.2 million tonnes of rapeseed this year, a three-year high and up five percent from 19.24 million tonnes in 2012, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Gavin Maguire, a Reuters market analyst, said in a column today that commercial and speculative traders have strongly opposing views on the corn market, judging by their recent positioning in corn futures and options as reflected in the latest Commitments of Traders report.
“Speculators are clearly heavily bearish, as they have just built up their largest net short stance in three years and their biggest overall short position ever for this time of year. In contrast, commercial traders have cut their short exposure to its lowest level since April 2010, thereby setting the stage for what could be an explosive standoff between the two most influential trader groups in the business as the 2013 U.S. planting season gets underway.”
While corn slipped today, it is supported by the slowest start to seeding since 1984 and rain and show is expected across much of the western part of the U.S. Midwest this week, further delaying seeding.
It continues dry in eastern parts of Australia, leading to expectations that canola acreage might fall and crop yields generally might suffer if region does not get good rain over the next two weeks. Rabobank has forecast canola seeded area in the region could fall by 30 percent.
Winnipeg ICE Futures Canada dollars per tonne
Canola May 2013 636.20 -5.80 -0.90%
Canola Jul 2013 613.60 -9.60 -1.54%
Canola Nov 2013 548.40 -5.90 -1.06%
Canola Jan 2014 549.40 -5.70 -1.03%
Canola Mar 2014 543.70 -5.70 -1.04%
Milling Wheat May 2013 292.00 unch 0.00%
Milling Wheat Jul 2013 294.00 unch 0.00%
Milling Wheat Oct 2013 294.00 unch 0.00%
Durum Wheat May 2013 301.90 unch 0.00%
Durum Wheat Jul 2013 301.90 unch 0.00%
Durum Wheat Oct 2013 294.90 unch 0.00%
Barley May 2013 243.50 unch 0.00%
Barley Jul 2013 244.00 unch 0.00%
Barley Oct 2013 194.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans May 2013 1467.75 -4 -0.27%
Soybeans Jul 2013 1399 -9.75 -0.69%
Soybeans Aug 2013 1339.75 -5.25 -0.39%
Soybeans Sep 2013 1264.75 -5.5 -0.43%
Soybeans Nov 2013 1223.5 -5.75 -0.47%
Soybeans Jan 2014 1230.75 -5.25 -0.42%
Soybean Meal May 2013 428.3 -3.1 -0.72%
Soybean Meal Jul 2013 414.5 -1.9 -0.46%
Soybean Meal Aug 2013 388.9 -1.2 -0.31%
Soybean Oil May 2013 49.13 -0.33 -0.67%
Soybean Oil Jul 2013 49.22 -0.29 -0.59%
Soybean Oil Aug 2013 49.04 -0.23 -0.47%
Corn May 2013 683.25 -0.75 -0.11%
Corn Jul 2013 650 -9.75 -1.48%
Corn Sep 2013 580.25 -4.5 -0.77%
Corn Dec 2013 556.75 -2.75 -0.49%
Corn Mar 2014 567 -2.5 -0.44%
Oats May 2013 415.5 +4.5 +1.09%
Oats Jul 2013 391.75 +1 +0.26%
Oats Dec 2013 368 +2.5 +0.68%
Oats Mar 2014 372.5 +0.75 +0.20%
Chicago soft red
Wheat May 2013 721.75 +12 +1.69%
Wheat Jul 2013 731 +14.5 +2.02%
Wheat Sep 2013 740.25 +15 +2.07%
Wheat Dec 2013 753.75 +14 +1.89%
Wheat Mar 2014 766.75 +14 +1.86%
Minneapolis hard red spring
Spring Wheat May 2013 837.5 +5.75 +0.69%
Spring Wheat Jul 2013 822 +3 +0.37%
Spring Wheat Sep 2013 824 +6.25 +0.76%
Spring Wheat Dec 2013 834.25 +9.25 +1.12%
Spring Wheat Mar 2014 843.5 +8.75 +1.05%
Kansas City hard red winter
KCBT Red Wheat May 2013 798 +17.25 +2.21%
KCBT Red Wheat Jul 2013 789.5 +13.75 +1.77%
KCBT Red Wheat Sep 2013 798 +12.75 +1.62%
KCBT Red Wheat Mar 2014 821 +12.5 +1.55%
Light crude oil nearby futures in New York down $1.04 at $93.46 US per barrel.
The Canadian dollar at noon was 99.29 cents US, up from 98.64 cents the previous trading day. The U.S. dollar at noon was $1.0072 Cdn.
The loonie was supported by a report showing Canada’s gross domestic product grew by 0.3% in February, more than expected. Gains in the mining and oil exploration sector lifted the economy, as did manufacturing’s second consecutive monthly increase.
In early tallies —
The Toronto Stock Exchange’s S&P/TSX composite index closed up 143.83 points, or 1.17 percent, at 12,456.50.
The Dow Jones industrial average rose 21.05 points, or 0.14 percent, to end at 14,839.80.
The Standard & Poor’s 500 Index gained 3.96 points, or 0.25 percent, to close at 1,597.57.
The Nasdaq Composite Index climbed 21.77 points, or 0.66 percent, to end at 3,328.79.
