Cold and snowy weather in the U.S. should increase feed demand and that caused oilseed prices to rise on Tuesday.
Canola followed soybeans higher. Canola was also supported by slow farmer selling as bitter cold covered most of the Prairies and by talk of fresh exports
Statistics Canada on Friday will deliver a grain and oilseeds stocks report.
Soybeans and corn were supported by the port strike in Argentina that is impeding exports from that country. They were also helped by thoughts that the cold and snow in the U.S. southern plains and Midwest will cause livestock to eat more feed.
Some support also came from a weaker U.S. dollar that fell back below par against the Canadian dollar.
Wheat fell in Chicago, was nearly flat in Kansas City and rose slightly in Minneapolis. Wheat shipments to Egypt are stalled because ports there are choked as a result of the political upheaval.
The big winter storm affecting a huge swath of the U.S., from Texas to New England, was on traders’ thoughts but did little to move the wheat market, at least today.
The storm appears to have delivered little snow to northwestern Kansas and Nebraska but larger amounts in southeastern Kansas and the Midwest.
High winds accompanied the snow and might have blown the snow into ditches. There is a strong possibility of increased winter kill in areas where the crop was not protected by snow, however, the full impact won’t be known until the weather warms and the crop comes out of dormancy in a few weeks.
In Winnipeg, March canola rose $5.40 to $609 per tonne on 14,779 trades.
May rose $5.30 to $617.70 on 7,635 trades.
The new crop November 2011 contract rose $9.30 to $581.30.
The previous day’s best basis narrowed to $26 under the March contract according to ICE Futures Canada in Winnipeg.
The March contract 14-day Relative Strength Index was 66. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
March barley futures were steady and untraded at $194. May was steady at $200 per tonne.
Chicago March soybeans rose 25 cents to $14.38 per bushel.
March corn rose 6.5 cents to $6.66 per bu.
March oats rose 1.5 cents to $3.975 per bu.
March Minneapolis hard spring wheat rose 1.25 cents to $9.81 per bu.
In New York, crude oil for March delivery fell $1.42 to $90.77 US per barrel.
The Canadian dollar at noon was $1.0079 US, up from 99.78 cents the previous trading day. The U.S. dollar at noon was 99.22 cents Cdn.
The Toronto Stock Exchange composite index rose 160.63 points to 13,712.62.
The Standard & Poor’s 500 Index rose 21.45 points to 1,307.57, lifted by signs of stronger U.S. manufacturing activity and good results from shipping company UPS.
