Canola futures rose again Tuesday, bucking a trend lower in many commodities triggered by worries about the global economy.
A sharply lower loonie and stronger soybeans helped lift canola. The weaker loonie improved the profit margin for domestic crushers.
Gains in new crop futures were limited by expectations of a record large seeded acreage this spring and. Also, a snowstorm in central Saskatchewan and Alberta yesterday and today brought welcome moisture to farm fields.
• Soybeans rose on news of good U.S. exports and lingering support from the South American drought. The U.S. Department of Agriculture will update its world production figures on Friday. The market expects it will reduce its forecast for Brazilian soybean production.
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• Corn and wheat fell because of the economic uncertainty that caused investors to buy U.S. treasuries and drive up the value of the American greenback.
• It was what the markets call a “risk off day,” with traders concerned about the strength of the global economic recovery and another deadline on the Greek debt issue.
Thursday is the deadline for private investors to sign up to swap their Greek government bonds for replacements with a lower face value and interest rate.
Major banks and investment funds have signed on for the swap, but it is uncertain whether hedge funds will agree. They originally bought the bonds at a steep discount and may profit from bond insurance payouts.
Also, the European Union and Brazil issued reports that showed their economies were performing worse than expected.
Winnipeg (per tonne)
Canola Mar 12 $585.90, up $3.20 +0.55%
Canola May 12 $577.90, up $2.70 +0.47%
Canola Jul 12 $578.90, up $3.00 +0.52%
Canola Nov 12 $540.70, up $0.80 +0.15%
The previous day’s best canola basis was $8.10 over the May contract, according to ICE Futures Canada in Winnipeg.
The 14 day relative strength index was 79.
Western Barley Mar 12 $214.00, unchanged
Western Barley May 12 $220.00, unchanged
Milling Wht Oct 12 $260.50, unchanged
Milling Wht Dec 12 $265.50, unchanged
Milling Wht Mar 13 $270.50, unchanged
Durum Wht Oct 12 $265.90, unchanged
Durum Wht Dec 12 $270.40, unchanged
Durum Wht Mar 13 $276.60, unchanged
Barley Oct 12 $185.00, unchanged
Barley Dec 12 $188.50, unchanged
Barley Mar 13 $190.00, unchanged
Chicago (per bushel)
Soybeans Mar 12 $13.2975, up 10.50 cents +0.80%
Soybeans May 12 $13.3525, up 10.25 +0.77%
Soybeans Nov 12 $12.9325, up 4.25 +0.33%
Corn Mar 12 $6.5800, down 8.25 -1.24%
Corn May 12 $6.5400, down 6.75 -1.02%
Corn Dec 12 $5.6350, down 7.75 -1.36%
Oats Mar 12 $3.2300, down 9.00 2.71%
Oats May 12 $3.0400, down 4.25 -1.38%
Oats Dec 12 $3.1525, down 3.75 -1.18%
Minneapolis (per bushel)
Spring Wht Mar 12 $8.1000, down 21.25 cents -2.56%
Spring Wht May 12 $8.1875, down 16.00 -1.92%
Spring Wht Dec 12 $7.9125, down 19.50 -2.41%
Light crude oil nearby futures in New York dropped $2.02 to $104.70 US per barrel.
The Canadian dollar at noon dropped below par at 99.85 cents US, down from $1.0064 the previous trading day. The U.S. dollar at noon was 1.0015 Cdn.
The Toronto Stock Exchange composite plunged 225.32 points, or 1.8 percent – its steepest one-day percentage loss so far this year – to 12,298.63.
The Dow Jones industrial average closed down 203.66 points, or 1.57 percent, at 12,759.15. The Standard & Poor’s 500 Index finished down 20.97 points, or 1.54 percent, at 1,343.36. The Nasdaq Composite Index ended down 40.16 points, or 1.36 percent, at 2,910.32.
