Weak loonie supports canola; wheat up on frosty forecast

The loonie fell almost one cent, helping canola futures post another gain on Wednesday.

Nearby oats futures jumped up the 20 cents a bushel limit on tight supply in the contract delivery area.

Wheat and corn rose but soybeans settled lower after setting a five-month high earlier in the day.

In canola, speculators had to cover their short positions, which helped lift the March contract $3.50 to $411.40.

Continuing transportation problems in Canada act as a drag on any rally in canola.

The loonie fell because of a weaker than expected December Canadian wholesale sales report. Also, the U.S. dollar rallied against most currencies.

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In soybeans, March traded as high as 13.71¾ a bushel before profit taking kicked in. A slight increase in farmer selling pressured cash prices which in turn weighed on the futures price.

There was some rain in northeastern Brazil, relieving crop stress there. However, it is expected to turn warmer and drier over the next 10 days.

Unlike other Brazilian forecasters that have been trimming their outlook for that country’s soybean crop, Abiove, the crushing industry there, increased its outlook to 88.6 million tonnes, up one million tonnes.

Wheat rose on the forecast for more icy weather in the U.S. plains next week after warm weather this week melts the protective layer of snow.

Corn rose one percent, partly on expectations that USDA will lower the expected seeded acreage forecast for 2014 at its outlook conference running Thursday and Friday.

Winnipeg ICE Futures Canada dollars per tonne

Canola Mar 2014 411.40 +3.50 +0.86%

Canola May 2014 421.90 +3.70 +0.88%

Canola Jul 2014 431.60 +3.70 +0.86%

Canola Nov 2014 449.10 +3.90 +0.88%

Canola Jan 2015 456.60 +4.10 +0.91%

Milling Wheat Mar 2014 200.00 +1.00 +0.50%

Milling Wheat May 2014 198.00 +1.00 +0.51%

Milling Wheat Jul 2014 199.00 +2.00 +1.02%

Durum Wheat Mar 2014 245.00 unch 0.00%

Durum Wheat May 2014 249.00 unch 0.00%

Durum Wheat Jul 2014 250.00 unch 0.00%

Barley Mar 2014 126.50 unch 0.00%

Barley May 2014 128.50 unch 0.00%

Barley Jul 2014 128.50 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 2014 1354.25 -6.75 -0.50%

Soybeans May 2014 1342 -5.75 -0.43%

Soybeans Jul 2014 1324.75 -5.5 -0.41%

Soybeans Aug 2014 1274.25 -2.75 -0.22%

Soybeans Sep 2014 1192 -1.5 -0.13%

Soybeans Nov 2014 1137 -1 -0.09%

Soybean Meal Mar 2014 453 -3.9 -0.85%

Soybean Meal May 2014 436.5 -1.6 -0.37%

Soybean Meal Jul 2014 423 -1.9 -0.45%

Soybean Oil Mar 2014 40.24 -0.12 -0.30%

Soybean Oil May 2014 40.52 -0.14 -0.34%

Soybean Oil Jul 2014 40.8 -0.14 -0.34%

Corn Mar 2014 453.75 +4.25 +0.95%

Corn May 2014 460.25 +4.75 +1.04%

Corn Jul 2014 464.75 +4.75 +1.03%

Corn Sep 2014 465.25 +4.5 +0.98%

Corn Dec 2014 468.25 +4.5 +0.97%

Oats Mar 2014 448.75 +20 +4.66%

Oats May 2014 413.75 +20 +5.08%

Oats Jul 2014 370.25 +19.75 +5.63%

Oats Sep 2014 340 +11.5 +3.50%

Oats Dec 2014 319.5 +11.5 +3.73%

Wheat Mar 2014 620.25 +8.25 +1.35%

Wheat May 2014 613.5 +6 +0.99%

Wheat Jul 2014 617 +5.75 +0.94%

Wheat Sep 2014 625.5 +6 +0.97%

Wheat Dec 2014 637.5 +6 +0.95%

Minneapolis

Spring Wheat Mar 2014 684 +4.75 +0.70%

Spring Wheat May 2014 659.5 +3.75 +0.57%

Spring Wheat Jul 2014 662 +4.25 +0.65%

Spring Wheat Sep 2014 669 +4.5 +0.68%

Spring Wheat Dec 2014 679.75 +4.75 +0.70%

Kansas City

KCBT Red Wheat Mar 2014 692.5 +6.75 +0.98%

KCBT Red Wheat May 2014 681.75 +5.75 +0.85%

KCBT Red Wheat Jul 2014 673.5 +6.25 +0.94%

KCBT Red Wheat Sep 2014 679.75 +5.75 +0.85%

KCBT Red Wheat Dec 2014 690 +5.5 +0.80%

Light crude oil nearby futures in New York rose 88 cents at $103.31 US per barrel.

The Canadian dollar at noon was 90.54 cents US, down from 91.30 cents the previous trading day. The U.S. dollar at noon was $1.1045 Cdn.

In unofficial tallies —

The Toronto Stock Exchange’s S&P/TSX composite index closed up 42.26 points, or 0.30 percent, at 14,119.73.

The Dow Jones industrial average fell 89.84 points or 0.56 percent, to end at 16,040.56.

The S&P 500 lost 12.01 points or 0.65 percent, to finish at 1,828.75.

The Nasdaq Composite dropped 34.83 points or 0.82 percent, to close at 4,237.954.

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