Easing concerns about the Brazilian truck strike pressured oilseeds lower today.
Canola was particularly down as the Canadian dollar rose about one cent on ideas that the Bank of Canada might not make more cuts to its interest rate.
The decline was sharpest in the March contract because traders are rolling out of it into the more active May contract.
The premium that March has held over May was lost today.
Traders were also taking profits today after the recent gains.
The basis for nearby delivery has widened out a little this week.
March canola closed at $458.50, down $14.30 or about three percent. May closed at $462.80, down $6.90, or 1.47 percent.
The easing situation in Brazil also weighed on soybeans, Reuters said.
CBOT wheat also fell as U.S. wheat remains too pricey in world markets and continues to miss out on big tenders. The exception was Egypt buying 290,000 tonnes of U.S. wheat on Tuesday, but the purchase was financed with U.S. credit.
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Corn was also weak, with volatile currency markets keeping traders on their toes. The U.S. dollar softened a bit but remained near an 11-year high, making American grain less price-competitive, Reuters said.
In Ukraine, a leading grain exporter, the central bank halted commercial currency trading until week’s end after its currency collapsed.
Reuters reported the Brazilian agriculture minister said after a meeting with truckers on Wednesday afternoon the government was not easing its higher fuel tax — the issue that sparked the week-long strike — but noted truckers showed flexibility and said she was confident a solution would be reached soon.
The government had begun fining protesters and several states allowed the federal police to clear the roads, traders told Reuters.
“The sell-off was triggered by some lessening concerns about the situation in Brazil,” said Anne Frick, a senior oilseeds analyst with Jefferies-Bache.
“The idea this issue might be going into the Brazilian courts has people a little more confident that truckers may back off their protests.”
U.S. traders also noted the Brazilian soymeal basis weakened on Wednesday, an indication processors were getting enough soybeans to crush despite the strike, Reuters said.
Light crude oil nearby futures in New York were up $1.71 to US$50.99 per barrel.
The Canadian dollar at noon was US80.52 cents, up from US79.35 cents the previous trading day. The U.S. dollar at noon was C$1.2419.
The Dow Jones industrial average rose 14.16 points, or 0.08 percent, to 18,223.35, the S&P 500 lost 1.76 points, or 0.08 percent, to 2,113.72 and the Nasdaq Composite dropped 0.99 points, or 0.02 percent, to 4,967.14.
Winnipeg ICE Futures Canada dollars per tonne
Canola May 2015 462.80 -6.90 -1.47%
Canola Jul 2015 458.20 -6.00 -1.29%
Canola Nov 2015 446.60 -5.20 -1.15%
Canola Jan 2016 448.20 -5.20 -1.15%
Milling Wheat Mar 2015 217.00 -4.00 -1.81%
Milling Wheat May 2015 227.00 -4.00 -1.73%
Milling Wheat Jul 2015 229.00 -4.00 -1.72%
Durum Wheat Mar 2015 333.00 unch 0.00%
Durum Wheat May 2015 323.00 unch 0.00%
Durum Wheat Jul 2015 313.00 unch 0.00%
Barley Mar 2015 180.00 unch 0.00%
Barley May 2015 182.00 unch 0.00%
Barley Jul 2015 184.00 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 1007.75 -8.25 -0.81%
Soybeans Jul 2015 1015.25 -7.75 -0.76%
Soybeans Aug 2015 1013.5 -7.5 -0.73%
Soybeans Sep 2015 998.5 -6.25 -0.62%
Soybeans Nov 2015 987.25 -5.5 -0.55%
Soybean Meal Mar 2015 350.5 -6.4 -1.79%
Soybean Meal May 2015 339.8 -5.9 -1.71%
Soybean Meal Jul 2015 336.3 -5.7 -1.67%
Soybean Oil Mar 2015 31.71 +0.29 +0.92%
Soybean Oil May 2015 31.91 +0.3 +0.95%
Soybean Oil Jul 2015 32.11 +0.28 +0.88%
Corn Mar 2015 375.75 -1.75 -0.46%
Corn May 2015 383.75 -1.75 -0.45%
Corn Jul 2015 391.75 -1.75 -0.44%
Corn Sep 2015 399.25 -1.5 -0.37%
Corn Dec 2015 409 -0.75 -0.18%
Oats Mar 2015 275.5 +1 +0.36%
Oats May 2015 267.25 -5.5 -2.02%
Oats Jul 2015 270.25 -6.25 -2.26%
Oats Sep 2015 276.5 -7 -2.47%
Oats Dec 2015 281.25 -4.75 -1.66%
Wheat Mar 2015 497.75 -8 -1.58%
Wheat May 2015 497.25 -6.5 -1.29%
Wheat Jul 2015 501.75 -6.5 -1.28%
Wheat Sep 2015 510.5 -6.25 -1.21%
Wheat Dec 2015 524 -6 -1.13%
Minneapolis
Spring Wheat Mar 2015 552.75 -13.25 -2.34%
Spring Wheat May 2015 556.25 -11.75 -2.07%
Spring Wheat Jul 2015 562.75 -10.25 -1.79%
Spring Wheat Dec 2015 581.75 -9.5 -1.61%
Kansas City
Hard Red Wheat Mar 2015 528.25 -7.5 -1.40%
Hard Red Wheat May 2015 530.75 -7.25 -1.35%
Hard Red Wheat Jul 2015 536.25 -7.25 -1.33%
Hard Red Wheat Sep 2015 549.5 -6.75 -1.21%
Hard Red Wheat Dec 2015 565 -6.25 -1.09%
