Weak loonie, strong soy, lift canola Wednesday

Markets adjusted a little on Wednesday following the U.S. Department supply and demand report on Tuesday.

The weaker loonie helped canola edge higher as did the stronger U.S. soy complex.

The big funds are rolling their positions from March into May.

U.S. wheat and soybeans were narrowly higher on Wednesday, rebounding from losses earlier in the session on support from bargain buying and active spread trading.

The report trimmed USDA’s U.S. and global year end stocks forecasts but not enough to seriously change the perception of ample supply.

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It increased the forecast for U.S. and global wheat year end stocks.

Corn futures trimmed losses today but still finished lower at the Chicago Board of Trade, weighed down by the largest stockpiles of grain-based ethanol in more than two years.

Bull spreading in soybean futures was linked to gains in U.S. cash markets, with shippers on the U.S. Gulf Coast eager for supplies before global buyers turn attention to record harvests in South America.

“Soybeans are seeing most of the volume in spreads,” said independent trader Ken Smithmier.

“Firmer soy basis and the positions rolling are helping to spike the (March-May soy spread).”

CBOT March soybeans gained 8-3/4 cents to $9.77 per bushel, recovering after falling to a one-week low of $9.66 earlier in the session. March futures’ discount to the May contract shrank to 3-3/4 cents, with the spread trading at its widest levels since June.

It also was the fourth day of the five-session Goldman roll, in which index funds roll long positions from nearby contracts into deferred months.

CBOT March wheat was up four cents at $5.25-3/4, while CBOT March corn edged 2-1/4 cents lower to $3.85-3/4.

Investors who had squared positions ahead of Tuesday’s U.S. Department of Agriculture monthly crop report were resuming dealings, while some traders also were exiting short bets.

Still, USDA forecasts for big global stockpiles of wheat, corn and soybeans were likely to anchor gains.

“Soybeans are seeing some support today from the USDA’s lowered forecasts of U.S. soybean stocks plus rising demand for U.S. soybeans in export markets,” said Frank Rijkers, agrifood economist at ABN AMRO Bank.

“However, the recovery in soybean prices is limited with the USDA still forecasting large world supplies.”

Light crude oil nearby futures in New York were down $1.18 to US$48.84 per barrel.

The Canadian dollar at noon was US79.15 cents, down from US79.82 cents the previous trading day. The U.S. dollar at noon was C$1.2635.

The uncertainty over the Greek debt negotiations in Europe weighed on stock markets. After the close, there were indications that there was progress on how Greece can handle its debt.

The Dow Jones industrial average closed down 6.62 points, or 0.04 percent, at 17,862.14, the S&P 500 lost 0.06 points to 2,068.53 and the Nasdaq Composite added 13.54 points, or 0.28 percent, to close at 4,801.18.

The Toronto Stock Exchange’s S&P/TSX composite index closed up 38.98 points, or 0.26 percent, at 15,151.50.

Winnipeg ICE Futures Canada dollars per tonne

Canola Mar 2015 461.60 +4.00 +0.87%

Canola May 2015 457.90 +4.40 +0.97%

Canola Jul 2015 454.40 +4.70 +1.05%

Canola Nov 2015 444.60 +4.80 +1.09%

Canola Jan 2016 446.10 +4.80 +1.09%

Milling Wheat Mar 2015 225.00 +2.00 +0.90%

Milling Wheat May 2015 234.00 +1.00 +0.43%

Milling Wheat Jul 2015 237.00 +1.00 +0.42%

Durum Wheat Mar 2015 333.00 unch 0.00%

Durum Wheat May 2015 323.00 unch 0.00%

Durum Wheat Jul 2015 313.00 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 977.75 +8.75 +0.90%

Soybeans May 2015 980.75 +6.5 +0.67%

Soybeans Jul 2015 985.75 +6 +0.61%

Soybeans Aug 2015 984.5 +5.25 +0.54%

Soybeans Sep 2015 970 +5.5 +0.57%

Soybeans Nov 2015 959.75 +6 +0.63%

Soybean Meal Mar 2015 329.6 +2.7 +0.83%

Soybean Meal May 2015 322.2 +2.4 +0.75%

Soybean Meal Jul 2015 319.3 +2.3 +0.73%

Soybean Oil Mar 2015 31.75 +0.3 +0.95%

Soybean Oil May 2015 31.96 +0.3 +0.95%

Soybean Oil Jul 2015 32.14 +0.29 +0.91%

Corn Mar 2015 385.75 -2.25 -0.58%

Corn May 2015 393.75 -2.5 -0.63%

Corn Jul 2015 401.25 -2.5 -0.62%

Corn Sep 2015 407.25 -2.75 -0.67%

Corn Dec 2015 415.25 -3.25 -0.78%

Oats Mar 2015 273.5 -1.5 -0.55%

Oats May 2015 275.75 -2.75 -0.99%

Oats Jul 2015 278.5 -2.25 -0.80%

Oats Sep 2015 283.25 -2.25 -0.79%

Oats Dec 2015 285.25 -0.75 -0.26%

Wheat Mar 2015 525.75 +4 +0.77%

Wheat May 2015 523.75 +1.5 +0.29%

Wheat Jul 2015 527 +0.75 +0.14%

Wheat Sep 2015 534.5 +0.25 +0.05%

Wheat Dec 2015 548 +0.5 +0.09%

Minneapolis

Spring Wheat Mar 2015 576 +6 +1.05%

Spring Wheat May 2015 578 +5 +0.87%

Spring Wheat Jul 2015 582.25 +2.75 +0.47%

Spring Wheat Sep 2015 589.5 +2.25 +0.38%

Spring Wheat Dec 2015 599.25 +2.75 +0.46%

Kansas City

Hard Red Wheat Mar 2015 559.25 +5.25 +0.95%

Hard Red Wheat May 2015 560.5 +4 +0.72%

Hard Red Wheat Jul 2015 564.75 +3.5 +0.62%

Hard Red Wheat Sep 2015 575 +3.25 +0.57%

Hard Red Wheat Dec 2015 589.5 +3 +0.51%

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