Rising loonie, hope for Brazil strike settlement pressured canola lower

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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U.S. soybean futures firmed on Wednesday as traders remained hopeful for progress in trade talks with top soy buyer China and on a Japanese proposal to increase U.S. soy purchases, deals that could help U.S. farmers avert major losses.

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 Mar 2015    458.50    -14.30    -3.02%
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 May 2015    1010.75    -8    -0.79%
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 Sep 2015    569.5    -10    -1.73%
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%