Weak loonie lifts canola, soy down on U.S. export worry

A sharp drop in the value of the Canadian dollar on Tuesday supported canola futures even as soybean and soy oil futures fell.

The loonie was pressured by falling crude oil values and a weaker than expected report on Canadian manufacturing sales.

The soy complex fell on ideas that global buyers are starting to shift their purchases to South American supplies.

Private exporters reported the cancellation of the sale of 174,00 tonnes of soybeans to China. It was the first large cancellation of the season coming a month earlier than last year.

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Soybean prices had been supported by the record pace of U.S. exports and that movement might be drawing down.

Beneficial rain in Brazil also pressured soybeans.

But corn and wheat edged higher on bargain buying.

Corn was also supported as traders sold soybeans and bought corn.

Ethanol futures also rose, supporting corn.

Wheat was up a little, partly on the renewed fighting in Ukraine.

Kansas wheat futures lagged Chicago and Minneapolis because beneficial rain is forecast for the U.S. southern plains.

Gains in wheat were limited by the slow pace of U.S. wheat exports as other suppliers with weaker currencies capture market share.

Palm futures were pressured by the slow pace of Malaysian exports so far in January. The price support from flooding in the last few weeks is fading.

Also prices had been supported by the idea that an El Nino could lead to dry weather that would trim production later in the year. However, the latest assessments from the Australian Bureau of Meteorology and other forecasters show a declining likelihood of even a moderate El Nino.

Brent crude oil prices fell towards $48 a barrel after the International Monetary Fund cut its forecast for global economic growth for this year and next implying lower demand for fuel.

The IMF trimmed its growth forecast for each year by 0.3 percentage point.

Iran’s oil minister said that OPEC appears unwilling to take steps to trim oil production, with the result that oil could fall to $25 a barrel.

Financial markets are also fretting about slowing Chinese growth. It grew 7.4 percent in 2014, the slowest pace in 24 years. However year-over-year fourth quarter growth was 7.3 percent, slightly better than expected.

Light crude oil nearby futures in New York were down $2.30 to US$46.39 per barrel.

The Canadian dollar at noon was US82.75 cents, down from 83.57 cents the previous trading day. The U.S. dollar at noon was C$1.2085.

The Toronto Stock Exchange’s S&P/TSX composite index closed down 4.06 points, or 0.03 percent, at 14,308.44.

The Dow Jones industrial average rose 3.66 points, or 0.02 percent, to 17,515.23, the S&P 500 gained 3.12 points, or 0.15 percent, to 2,022.54 and the Nasdaq Composite added 20.46 points, or 0.44 percent, to 4,654.85.

Winnipeg ICE Futures Canada in dollars per tonne

Canola Mar 2015 455.70 +6.00 +1.33%

Canola May 2015 447.60 +3.70 +0.83%

Canola Jul 2015 440.90 +3.80 +0.87%

Canola Nov 2015 430.40 +5.00 +1.18%

Canola Jan 2016 432.40 +4.80 +1.12%

Milling Wheat Mar 2015 217.00 +1.00 +0.46%

Milling Wheat May 2015 220.00 +1.00 +0.46%

Milling Wheat Jul 2015 223.00 +2.00 +0.90%

Durum Wheat Mar 2015 361.00 unch 0.00%

Durum Wheat May 2015 351.00 unch 0.00%

Durum Wheat Jul 2015 341.00 unch 0.00%

Barley Mar 2015 195.00 unch 0.00%

Barley May 2015 197.00 unch 0.00%

Barley Jul 2015 199.00 unch 0.00%

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

Chicago

Soybeans Mar 2015 982 -9.75 -0.98%

Soybeans May 2015 987.75 -9.75 -0.98%

Soybeans Jul 2015 993 -10 -1.00%

Soybeans Aug 2015 992.5 -10 -1.00%

Soybeans Sep 2015 977.5 -9.75 -0.99%

Soybeans Nov 2015 966.75 -8.5 -0.87%

Soybean Meal Mar 2015 326.5 +0.3 +0.09%

Soybean Meal May 2015 319.3 -1.2 -0.37%

Soybean Meal Jul 2015 318.6 -2.1 -0.65%

Soybean Oil Mar 2015 32.84 -0.55 -1.65%

Soybean Oil May 2015 33 -0.52 -1.55%

Soybean Oil Jul 2015 33.17 -0.52 -1.54%

Corn Mar 2015 390.25 +3.25 +0.84%

Corn May 2015 397.75 +3.5 +0.89%

Corn Jul 2015 404 +3 +0.75%

Corn Sep 2015 409.75 +3 +0.74%

Corn Dec 2015 417 +2.25 +0.54%

Oats Mar 2015 290.25 +1.5 +0.52%

Oats May 2015 292.75 +0.75 +0.26%

Oats Jul 2015 297 +0.25 +0.08%

Oats Sep 2015 299 +0.5 +0.17%

Oats Dec 2015 297.75 +1.75 +0.59%

Wheat Mar 2015 537 +4.25 +0.80%

Wheat May 2015 539.75 +5 +0.94%

Wheat Jul 2015 544.25 +6 +1.11%

Wheat Sep 2015 552.25 +6.25 +1.14%

Wheat Dec 2015 563.75 +6 +1.08%

Minneapolis

Spring Wheat Mar 2015 589.5 +5 +0.86%

Spring Wheat May 2015 596 +5.25 +0.89%

Spring Wheat Jul 2015 603.5 +4.75 +0.79%

Spring Wheat Sep 2015 610.25 +4.5 +0.74%

Spring Wheat Dec 2015 620 +5 +0.81%

Kansas City

Hard Red Wheat Mar 2015 577.75 +0.75 +0.13%

Hard Red Wheat May 2015 581.25 +1.75 +0.30%

Hard Red Wheat Jul 2015 583.5 +0.75 +0.13%

Hard Red Wheat Sep 2015 594.75 +1 +0.17%

Hard Red Wheat Dec 2015 608.5 +1 +0.16%

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