Stronger veg oil, slower farmer deliveries lift canola

Canola and other oilseeds were supported on Thursday by reports from Malaysia showing smaller than expected monthly stocks and better than expected exports.

Stocks of Malaysian palm oil ended September at 1.78 million tonnes, well below the expected 1.91 million.

In Canada, exporter short covering and a slow down in farmer deliveries also helped lift canola.

Canola futures were near a three week high, but a widening basis is lessening the benefit on the cash market.

Harvest in south eastern Saskatchewan and south western Manitoba will be delayed by expected heavy rain Friday.

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U.S. grains: Soybean prices rise as China-U.S. truce assessed

Chicago soybean prices rose on Wednesday, recovering some of the previous session’s losses, as Beijing’s confirmation that it was cutting tariffs on U.S. farm goods put attention back on a trade truce between the countries.

While the stronger vegetable oil market helped lift soybeans, gains were limited by talk of favourable Midwest yields, particularly in corn. U.S. farmers are holding back from selling though and that is supporting the cash market.

Corn was pressured lower by talk that the U.S. Environmental Protection Administration could cut the U.S. ethanol mandate by six to 10 percent for the next two years. That might lessen the ethanol industry’s demand for corn.

Wheat futures were mostly down with Chicago soft wheat down the most. However, Minneapolis hard wheat July and September 2014 edged higher.

The lower values were mostly the result of Egypt, traditionally the world’s largest wheat buyer, rejecting bids on its latest tender saying they were all too high.

Losses in wheat were limited by concerns about quality in the just harvested wheat crop in the Former Soviet Union and about delayed seeding of next year’s FSU crop.

Also dry weather and frosts have trimmed Argentina’s wheat crop. The Buenos Aires Grain Exchange estimates the harvest there will total 10.5 million. That is up from last year when bad weather reduced the crop to just eight million tonnes. However, the forecast is down from the USDA’s forecast for this year’s crop at 12 million tonnes.

Saskatchewan Agriculture said today that 89 percent of all crops in the province have been combined, ahead of the five year average of 85 percent but behind the last two years when more than 90 percent was complete.

Yields vary from region to region, but on average spring wheat average yields are reported as 47 bushels per acre, durum 44 bu., barley 69 bu., canola 38 bu. and peas 43 bu., Saskatchewan Agriculture said.

Grades for spring wheat are estimated as 59 percent No. 1, 31 percent No. 2, nine percent No. 3 and one percent CW feed. That is better than normal.

Stock markets rose on signs of an easing of the deadlock between Republicans and Democrats in Washington over the budget and debt limit.

ICE Futures Canada, dollars per tonne

Canola Nov 2013 487.00 +4.80 +1.00%

Canola Jan 2014 496.90 +5.10 +1.04%

Canola Mar 2014 504.40 +5.50 +1.10%

Canola May 2014 510.70 +5.90 +1.17%

Canola Jul 2014 515.80 +6.20 +1.22%

Milling Wheat Oct 2013 235.00 -2.00 -0.84%

Milling Wheat Dec 2013 239.00 -2.00 -0.83%

Milling Wheat Mar 2014 245.00 -2.00 -0.81%

Durum Wheat Oct 2013 243.00 unch 0.00%

Durum Wheat Dec 2013 247.00 unch 0.00%

Durum Wheat Mar 2014 253.00 unch 0.00%

Barley Oct 2013 149.00 unch 0.00%

Barley Dec 2013 152.00 unch 0.00%

Barley Mar 2014 154.00 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 2013 1288 +0.25 +0.02%

Soybeans Jan 2014 1285.5 +1.5 +0.12%

Soybeans Mar 2014 1272.5 +3.5 +0.28%

Soybeans May 2014 1255 +4.5 +0.36%

Soybeans Jul 2014 1251.5 +4 +0.32%

Soybeans Aug 2014 1239.25 +2.75 +0.22%

Soybean Meal Oct 2013 424.4 -0.8 -0.19%

Soybean Meal Dec 2013 409.6 -2.1 -0.51%

Soybean Meal Jan 2014 405.9 -1.2 -0.29%

Soybean Oil Oct 2013 41.04 +0.49 +1.21%

Soybean Oil Dec 2013 41.22 +0.55 +1.35%

Soybean Oil Jan 2014 41.53 +0.55 +1.34%

Corn Dec 2013 438.25 -5.25 -1.18%

Corn Mar 2014 451 -5.25 -1.15%

Corn May 2014 459.5 -5.25 -1.13%

Corn Jul 2014 467 -5.25 -1.11%

Corn Sep 2014 473 -5 -1.05%

Oats Dec 2013 320.25 +2.25 +0.71%

Oats Mar 2014 307.5 +3.75 +1.23%

Oats May 2014 306.75 +5.75 +1.91%

Oats Jul 2014 300.5 +5.75 +1.95%

Oats Sep 2014 301 +5.75 +1.95%

Wheat Dec 2013 685.5 -5 -0.72%

Wheat Mar 2014 695.25 -5.25 -0.75%

Wheat May 2014 698.75 -6.25 -0.89%

Wheat Jul 2014 690.75 -7.5 -1.07%

Wheat Sep 2014 696.25 -6.75 -0.96%

Minneapolis

Spring Wheat Dec 2013 751 -2 -0.27%

Spring Wheat Mar 2014 760.75 -1.25 -0.16%

Spring Wheat May 2014 765.25 -1 -0.13%

Spring Wheat Jul 2014 767.5 +0.25 +0.03%

Spring Wheat Sep 2014 769 +1.25 +0.16%

Kansas City

KCBT Red Wheat Dec 2013 755.5 -3.5 -0.46%

KCBT Red Wheat Mar 2014 755 -3 -0.40%

KCBT Red Wheat May 2014 754 -3.75 -0.49%

KCBT Red Wheat Jul 2014 738.5 -4 -0.54%

KCBT Red Wheat Sep 2014 746 -3.25 -0.43%

Light crude oil nearby futures in New York dropped $1.88 at $101.61 US per barrel.

The Bank of Canada noon rate for the loonie was 96.31 cents US, up from 96.18 cents the previous trading day. The U.S. dollar at noon was $1.0383 Cdn.

In early tallies —

The Toronto Stock Exchange’s S&P/TSX composite index closed up 1.3 percent, or 164.08 points, at 12,894.41

The Dow Jones industrial average rose 323.09 points or 2.18 percent, to 15,126.07, the S&P 500 gained 36.16 points or 2.18 percent, to 1,692.56 and the Nasdaq Composite added 82.971 points or 2.26 percent, to 3,760.747.