A rebound in U.S. grain futures and worries about the size of the Canadian canola crop lifted the oilseed’s price Wednesday.
The November canola contract closed at$634.60, up $8.20 or 1.3 percent.
Soybeans, corn and wheat were also higher.
Bargain hunters were active in U.S. markets after two days of sharp declines sparked by early harvest results where soybean yields were not as bad as expected. The sell off Monday and Tuesday was also tied to oversold conditions in crop futures and other commodities.
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There is also some talk that the culling of hog herds in the U.S. will eventually lead to reduced demand for soy meal.
•Canola had independent strength after strong winds in Western Canada played havoc with swathed crop, causing shattering and reducing yields.
• Stock markets rose on U.S. existing home sales data that was better than expected and showed the largest monthly increase in two years.
• The market was also supported by the Bank of Japan’s decision to engage in new stimulus.
• The Australian weather service has issued an October to December outlooks that forecasts drier than normal conditions for the southeastern grain belt. Many regions are already in desperate need of rain.
Australian Crop Forecasters outlook for the wheat crop is 20-22 million tonnes, but if dry weather conditions continue for two weeks it said the forecast could narrow to 21 million tonnes.
Areas of wheat belt in Western Australia have a better than normal chance for more than normal rail in the period. http://www.bom.gov.au/climate/ahead/rain_ahead.shtml
• The U.S. Department of Agriculture in January will start publishing its monthly crop reports at noon instead of 8:30 a.m. eastern time.
The change was sparked by the Chicago commodity exchange’s extension of trading hours.
Winnipeg (per tonne)
Canola Nov 12 $634.60, up $8.20 +1.31%
Canola Jan 13 $638.20, up $8.00 +1.27%
Canola Mar 13 $638.30, up $6.90 +1.09%
Canola May 13 $626.50, up $6.80 +1.10%
Milling Wheat Oct 12 $294.00, up $1.80 +0.62%
Milling Wheat Dec 12 $299.80, up $1.80 +0.60%
Milling Wheat Mar 13 $309.30, up $1.80 +0.59%
Durum Wheat Oct 12 $310.10, unchanged
Durum Wheat Dec 12 $314.60, unchanged
Durum Wheat Mar 13 $321.20, unchanged
Barley Oct 12 $250.30, unchanged
Barley Dec 12 $255.30, unchanged
Barley Mar 13 $258.30, unchanged
Chicago (per bushel)
Soybeans (P) Nov 12 $16.695, up 29.5 +1.80%
Soybeans (P) Jan 13 $16.6925, up 30.0 +1.83%
Soybeans (P) Mar 13 $16.27, up 27.25 +1.70%
Soybeans (P) May 13 $15.58, up 22.0 +1.43%
Corn (P) Dec 12 $7.565 +16.5 +2.23%
Corn (P) Mar 13 $7.5875, up 14.75 +1.98%
Corn (P) May 13 $7.565, up 13.0 +1.75%
Oats (P) Dec 12 $3.7575, up 1.75 +0.47
Oats (P) Mar 13 $3.80, unchanged
Oats (P) May 13 $3.80, down 1.25 -0.33%
Minneapolis (per bushel)
Spring Wheat Dec 12 $9.42, up 17.5 +1.89%
Spring Wheat Mar 13 $9.5125, up 18.5 +1.98%
Spring Wheat May 13 $9.575, up 17.75 +1.89%
Spring Wheat Jul 13 $9.55, up 15.75 +1.68%
The Bank of Canada’s noon rate for the loonie was $1.0262 US, little changed from $1.0265 the previous day.
The U.S. buck was 97.45 cents Cdn.
Nearby crude oil in Chicago closed at $91.98, down $3.31.
In early tallies:
The Toronto Stock Exchange’s S&P/TSX composite index closed 13.45 points, or 0.11 percent, higher at 12,436.16.
The Dow Jones industrial average rose 13.01 points, or 0.10 percent, to close at 13,577.65.
The Standard & Poor’s 500 Index was up 1.74 points, or 0.12 percent, to end at 1,461.05.
The Nasdaq Composite Index was up 4.82 points, or 0.15 percent, to close at 3,182.62.
