Short covering was the order of the day on Monday, lifting all crop futures markets higher.
“If you are looking for a fundamental reason for today’s price rally, look elsewhere, as it appears the action was all structural,” Charlie Sernatinger, global head of grain futures for ED&F Man Capital said in a note to clients, as reported by Reuters.
There is a feeling that crop prices have fallen enough and that the heavy short positions that most traders hold have run their course promping a round of short liquidation.
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U.S. grains: Corn futures edge up, soybeans sag on improving US crop ratings
Chicago Board of Trade corn futures extended slight gains on Tuesday as short covering and bargain buying continued to support a rebound from contract lows reached during the previous session.
However, generally good harvest weather in the U.S. and western Canada will likely cap rallies.
Downward pressure also comes from worries about Chinese demand for soybeans and about prospects for record large soybean crops in South America.
Light crude oil nearby futures in New York were up $2 to US$46.68 per barrel. Oil rose on rising gasoline prices and ideas that U.S. oil output might decline as drilling activity slows.
The Canadian dollar at noon was US75.47cents, up from 76.06 cents the previous trading day. The U.S. dollar at noon was C$1.3250.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 132.54 points, or 0.97 percent, at 13,779.44.
The Dow Jones industrial average rose 125.61 points, or 0.77 percent, to 16,510.19, the S&P 500 gained 8.94 points, or 0.46 percent, to 1,966.97 and the Nasdaq Composite added 1.73 points, or 0.04 percent, to 4,828.96.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2015 468.00 +3.20 +0.69%
Canola Jan 2016 473.40 +3.30 +0.70%
Canola Mar 2016 475.70 +2.90 +0.61%
Canola May 2016 476.10 +2.90 +0.61%
Canola Jul 2016 476.50 +3.20 +0.68%
Milling Wheat Oct 2015 235.00 +3.00 +1.29%
Milling Wheat Dec 2015 239.00 +2.00 +0.84%
Milling Wheat Mar 2016 244.00 +2.00 +0.83%
Durum Wheat Oct 2015 330.00 unch 0.00%
Durum Wheat Dec 2015 330.00 unch 0.00%
Durum Wheat Mar 2016 335.00 unch 0.00%
Barley Oct 2015 184.00 unch 0.00%
Barley Dec 2015 184.00 unch 0.00%
Barley Mar 2016 186.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Nov 2015 874.25 +7 +0.81%
Soybeans Jan 2016 878.75 +7.25 +0.83%
Soybeans Mar 2016 882.25 +7.5 +0.86%
Soybeans May 2016 885 +7 +0.80%
Soybeans Jul 2016 889.75 +7 +0.79%
Soybeans Aug 2016 889 +7 +0.79%
Soybean Meal Oct 2015 309.6 +0.6 +0.19%
Soybean Meal Dec 2015 308.2 +0.4 +0.13%
Soybean Meal Jan 2016 306.9 +0.6 +0.20%
Soybean Oil Oct 2015 26.5 +0.45 +1.73%
Soybean Oil Dec 2015 26.71 +0.46 +1.75%
Soybean Oil Jan 2016 27.03 +0.46 +1.73%
Corn Dec 2015 384.5 +7.25 +1.92%
Corn Mar 2016 396 +7.5 +1.93%
Corn May 2016 403.5 +7.5 +1.89%
Corn Jul 2016 409 +7.25 +1.80%
Corn Sep 2016 403.75 +7.5 +1.89%
Oats Dec 2015 231.75 +1.25 +0.54%
Oats Mar 2016 235.75 +2.25 +0.96%
Oats May 2016 238.25 +2.5 +1.06%
Oats Jul 2016 239 +2.25 +0.95%
Oats Sep 2016 239 +2.25 +0.95%
Wheat Dec 2015 496.75 +10 +2.05%
Wheat Mar 2016 504 +10.5 +2.13%
Wheat May 2016 508.75 +10.5 +2.11%
Wheat Jul 2016 512.75 +10.5 +2.09%
Wheat Sep 2016 521.25 +10.25 +2.01%
Minneapolis
Spring Wheat Dec 2015 518.25 +7.25 +1.42%
Spring Wheat Mar 2016 531.75 +6.5 +1.24%
Spring Wheat May 2016 542.25 +7 +1.31%
Spring Wheat Jul 2016 552.25 +6.75 +1.24%
Spring Wheat Sep 2016 562.75 +6.75 +1.21%
Kansas City
Hard Red Wheat Dec 2015 490.5 +8.25 +1.71%
Hard Red Wheat Mar 2016 505 +8.5 +1.71%
Hard Red Wheat May 2016 514.75 +8.25 +1.63%
Hard Red Wheat Jul 2016 524.25 +8.25 +1.60%
Hard Red Wheat Sep 2016 537.75 +7.75 +1.46%
