Canola and other crop futures on Tuesday regained some of the ground lost on Monday and Friday.
The downward pressure had been blamed on analysts’ expectation that the USDA on Friday will increase its estimate of the U.S. soybean crop and on forecasts of good rain in dry parts of Brazil’s soybean belt.
Today, the thinking about the USDA report is expanded. Analysts now say they also expect USDA will also increase its demand projections, resulting in a year-end stocks number little changed from last month.
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Canola also had independent strength from commercial buying, a lack of farmer selling and thoughts that the recent downturn was overdone.
Traders across all markets are cautious today because of the U.S. presidential election.
November canola closed at $603.00, up $9.20.
January was $600.50, up $10.70.
Wheat was supported by a one percentage point decrease in the U.S. winter wheat’s good-to-excellent condition rating.
Also, it is raining in parts of Australia, threatening to downgrade the quality of the wheat crop there.
Reuters reports that private consultant Michael Cordonnier lowered his forecast of Argentina’s 2012-13 corn crop to 22.5 million tonnes, from 26 million previously, due to excessive rains and flooding that have delayed planting.
Cordonnier expects excess moisture will result in a 10 percent reduction in corn acreage and a five percent loss in yield potential.
Winnipeg (per tonne)
Canola Nov 12 $603.00, up $9.20 +1.55%
Canola Jan 13 $600.50, up $10.70 +1.81%
Canola Mar 13 $597.30, up $11.30 +1.93%
Canola May 13 $592.50, up $14.00 +2.42%
Milling Wheat Dec 12 $308.50, unchanged
Milling Wheat Mar 13 $318.00, unchanged
Milling Wheat May 13 $321.00, unchanged
Durum Wheat Dec 12 $312.40, unchanged
Durum Wheat Mar 13 $319.00, unchanged
Durum Wheat May 13 $323.00, unchanged
Barley Dec 12 $250.00, unchanged
Barley Mar 13 $253.00, unchanged
Barley May 13 $254.00, unchanged
Chicago (per bushel)
Soybeans (P) Nov 12 $15.1675, up 12.5 +0.83%
Soybeans (P) Jan 13 $15.155, up 12.25 +0.81%
Soybeans (P) Mar 13 $14.91, up 8.5 +0.57%
Soybeans (P) May 13 $14.6525, up 8.75 +0.60%
Corn (P) Dec 12 $7.41, up 5.5 +0.75%
Corn (P) Mar 13 $7.43, up 5.0 +0.68%
Corn (P) May 13 $7.3975, up 4.25 +0.58%
Oats (P) Dec 12 $3.60, up 2.0 +0.56%
Oats (P) Mar 13 $3.6875, up 1.5 +0.41%
Oats (P) May 13 $3.68, unchanged
Minneapolis (per bushel)
Spring Wheat Dec 12 $9.48, up 8.0 +0.85%
Spring Wheat Mar 13 $9.5475, up 8.5 +0.90%
Spring Wheat May 13 $9.6075, up 7.75 +0.81%
Spring Wheat Jul 13 $9.5825, up 6.0 +0.63%
The Bank of Canada noon rate for the loonie is $1.0064 US, up from $1.0035.
The U.S. dollar is 99.36 cents Cdn.
Crude oil in New York rose $3.06 to $88.71 per barrel.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 8.42 points, or 0.07 percent, at 12,361.20.
The Dow Jones industrial average rose 133.24 points, or 1.02 percent, to close at 13,245.68.
The Standard & Poor’s 500 Index was up 11.10 points, or 0.78 percent, to finish at 1,428.36.
The Nasdaq Composite Index rose 12.27 points, or 0.41 percent, to close at 3,011.93.
