Expected rain in the U.S. hard red winter belt failed to fall, lifting wheat futures on Thursday, which in turn supported corn and oilseeds.
Another weather system could bring light rain and snow to the winter wheat region on Friday but there is a better chance for mosture on Monday. The system will also bring cold temperatures, so the benefit of moisture might be partly offset by cold damage.
Canola started the day lower following overnight trade in palm oil, which has been declining because of expectations of stronger production in Malaysia this year. Production until recently has suffered from the lingering effects of the El Nino drought of 2009.
Canola rallied into positive territory later, supported by the rally in wheat.
Canola is also supported by worries about the heavy snowpack and the potential for a late and wet seeding season.
There are similar concerns about a late, wet spring in the U.S. northern plains.
Corn continues to be supported by the unconfirmed rumour that China has bought a significant amount of American corn.
It is dry in Germany and France leading to some concern, but so far it has been helpful, allowing farmers to speed ahead with spring planting.
The Canadian Wheat Board released Pool Return Oitlooks for the current crop and the new crop. The current crop PRO lowers wheat prices a little and durum by $16-$18 per tonne.
Feed and malting barley PROs were steady
The new crop PRO lowered wheat outlook by $23-$28 per tonne, durum by $24-$38, feed barley by $26, and designated barley by $9. For more details see daily news at producer.com.
Winnipeg (per tonne)
Canola May 11 $579.40, up $6.40
Canola Jul 11 $587.90, up $6.60
Canola Nov 11 $566.10, up $5.50
Canola Jan 12 $570.90, up $4.90
The previous day’s best basis widened to $16.13 under the May contract according to ICE Futures Canada in Winnipeg.
The May contract’s Relative Strength Index was 52. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley May 11 $200, unchanged
Chicago (per bushel)
Soybeans May 11 $13.545, up 3.25 cents
Soybeans Jul 11 $13.645, up 3.5 cents
Soybeans Nov 11 $13.435, up 10.2 cents
Corn May 11 $7.025, up 21.5 cents
Corn Dec 11 $6.1875, up 9 cents
Oats May 11 $3.485, up 9 cents
Oats Jul 11 $3.5725, up 9.25 cents
Minneapolis (per bushel)
Spring Wheat May 11 $8.8325, up 24.25 cents
Spring Wheat Jul 11 $8.9125, up 23 cents
Spring Wheat Dec 11 $9.095, up 24.75 cents
Light crude oil nearby futures in New York fell 15 cents to $105.60 US per barrel.
The Canadian dollar at noon was $1.0259 US, up from $1.0182 the previous trading day. The U.S. dollar at noon was 97.48 cents Cdn.
The Toronto Stock Exchange composite index down 57.81 points, or 0.41 percent, at 14,029.37.
The Standard & Poor’s 500 Index climbed 12.12 points, or 0.93 percent, to 1,309.66.
Generally, investors seem to be gaining back confidence since the scares from the Japanese nuclear crisis and the unrest in the Arab world.
