Canola futures dropped about two percent on Wednesday on technical signals, long liquidation and commercial hedges.
The March contact closed at $407.50, down $8.90 to reach a 3 1/2 year low.
There was no new fundamental news in canola. The transportation issue remains the key limiting factor on prices. It just seems that speculative selling built on itself.
I don’t do technical analysis, but it looks like that previous low of around $375 per tonne set in late 2009 and early 2010 is still a potential low.
Read Also
Russia’s new-crop grain hits market as top producers report first harvest data
The first grain from Russia’s new crop has arrived on the market, traders and analysts said on Monday, as top producing regions reported early harvesting results, with an expected drop in the Rostov region and a good harvest in Stavropol.
March soybeans were down 0.88 percent. USDA noted private exporters reported cancelation of 270,000 tonnes of U.S. soybeans previously sold to China for delivery during this crop year.
The trade has been expecting a shift in business to South American product as its harvest becomes available.
On the other hand, sales of 240,000 tonnes of U.S. soybeans were recorded for the new crops year.
Showers and cooler weather in Brazil also pressured soybeans. Significant rain is expected Sunday and early next week.
Chicago wheat edged lower. March Kansas and Minneapolis wheat also dipped but new crop Kansas and Minneapolis managed a slight increase.
Weather is expected to warm in the United States next week, reducing the freezing threat on winter wheat.
March Kansas rose early but ran into resistance at its 50-day moving average, a key technical point the market has not passed through since Nov. 4, Reuters said.
Corn drifted slightly lower.
Drought and heat in eastern Australia is burning up pasture forcing cow-calf producers to sell their cattle to feedlots. That is expected to increase the amount of Australian wheat going into feed rations.
Australia’s major wheat and canola crops are not seeded until May-June so the drought is not directly affecting them yet.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2014 407.50 -8.90 -2.14%
Canola May 2014 417.70 -8.50 -1.99%
Canola Jul 2014 426.90 -8.30 -1.91%
Canola Nov 2014 444.00 -7.70 -1.70%
Canola Jan 2015 451.10 -7.20 -1.57%
Milling Wheat Mar 2014 190.00 -2.00 -1.04%
Milling Wheat May 2014 190.00 unch 0.00%
Milling Wheat Jul 2014 190.00 unch 0.00%
Durum Wheat Mar 2014 245.00 unch 0.00%
Durum Wheat May 2014 249.00 unch 0.00%
Durum Wheat Jul 2014 250.00 unch 0.00%
Barley Mar 2014 126.50 unch 0.00%
Barley May 2014 128.50 unch 0.00%
Barley Jul 2014 128.50 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 2014 1323 -11.75 -0.88%
Soybeans May 2014 1309.75 -10.75 -0.81%
Soybeans Jul 2014 1292.25 -9.5 -0.73%
Soybeans Aug 2014 1246 -8 -0.64%
Soybeans Sep 2014 1170.25 -5.75 -0.49%
Soybeans Nov 2014 1118.75 -4.75 -0.42%
Soybean Meal Mar 2014 443.5 -5.7 -1.27%
Soybean Meal May 2014 425.5 -5.7 -1.32%
Soybean Meal Jul 2014 413.5 -5.1 -1.22%
Soybean Oil Mar 2014 38.99 +0.14 +0.36%
Soybean Oil May 2014 39.3 +0.16 +0.41%
Soybean Oil Jul 2014 39.6 +0.13 +0.33%
Corn Mar 2014 440 -1.5 -0.34%
Corn May 2014 446 -1.25 -0.28%
Corn Jul 2014 451.5 -1 -0.22%
Corn Sep 2014 453.75 unch 0.00%
Corn Dec 2014 457.75 +2 +0.44%
Oats Mar 2014 418.5 -18.75 -4.29%
Oats May 2014 377.5 -6.5 -1.69%
Oats Jul 2014 338.75 -4.5 -1.31%
Oats Sep 2014 323.25 -6 -1.82%
Oats Dec 2014 305.5 -2.25 -0.73%
Wheat Mar 2014 587 -3.25 -0.55%
Wheat May 2014 586.25 -2.75 -0.47%
Wheat Jul 2014 590.75 -2.5 -0.42%
Wheat Sep 2014 599.5 -2.25 -0.37%
Wheat Dec 2014 612 -2.5 -0.41%
Minneapolis
Spring Wheat Mar 2014 654.75 -6.5 -0.98%
Spring Wheat May 2014 639.25 +1.25 +0.20%
Spring Wheat Jul 2014 639.25 +2 +0.31%
Spring Wheat Sep 2014 646.5 +2.5 +0.39%
Spring Wheat Dec 2014 657.75 +2.75 +0.42%
Kansas City
KCBT Red Wheat Mar 2014 663 -2.5 -0.38%
KCBT Red Wheat May 2014 657 unch 0.00%
KCBT Red Wheat Jul 2014 648.25 +0.75 +0.12%
KCBT Red Wheat Sep 2014 656 +1.5 +0.23%
KCBT Red Wheat Dec 2014 666 +1.5 +0.23%
Light crude oil nearby futures in New York rose 43 cents at $100.37 US per barrel.
The Canadian dollar at noon was 90.97 cents US, up from 90.70 cents the previous trading day. The U.S. dollar at noon was $1.0993 Cdn.
The TSX composite rose 19.5 points or 0.14 percent to 13,900.49
The Dow Jones fell 51.12 points of 0.32 percent to 15,943.65.
The S&P 500 fell 2.81 points or 0.15 percent to 1,816.94.
The Nasdaq rose 3.76 points or 0.09 percent to 4,194.81.
