Oilseeds, corn and wheat all rose Tuesday on evidence of reviving demand and continuing dry weather in the U.S. hard red winter wheat region.
Markets were also supported when global lenders reached a new deal to reduce Greece’s debt and release loans needed to keep the country afloat. However that optimism faded later in the day to be replaced by renewed worries about the willingness of U.S. politicians to compromise on a deal to avoid the fiscal cliff.
Talk of new exports to China supported soybeans, as did strong exports of soy oil. There was also unconfirmed talk of China buying canola.
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January canola closed at $592.00, up $9.60, or 1.65 percent
• Seeding delays in Argentina supported the market. More rain is falling in that country this week. The moisture is good in some areas, but in Buenos Aires province fields are saturated. There is talk that the ideal window for seeding corn is passing and acres might switch to soybeans.
• Influential oilseed analyst Oil World’s latest report said oilseed prices are too low and do not take into account the production risk in South America. It said global soybean stocks would be so low in 2013 that there is no cushion to make up for and production problem in South America.
Oil World also warned that the transportation systems in Brazil and Argentina might simply be inadequate to accommodate the demand that there will be as soon as the countries start harvesting.
•A strong cash market in corn lifted corn futures.
•The falling crop rating of U.S. hard red winter wheat, now at an historic low, lifted wheat futures.
• China’s imports of cereal grains are running well ahead of last year at the same time.
In the 10 months to the end of October, Chinese customs data showed wheat imports at 3.57 million tonnes, almost 250 percent more than the year before.
Corn imports are 4.57 million tonnes, up 386 percent.
Barley imports are 2.26 million tonnes, up 54 percent.
Cassava imports are 6.03 million tonnes, up 42 percent, and rise 1.98 million tonnes, up 292 percent.
Check out my Market Watch column in the Nov. 29 Western Producer for background on China’s oilseed and cereal demand.
Winnipeg (per tonne)
Canola Jan 13 $592.00, up $9.60 +1.65%
Canola Mar 13 $591.40, up $9.80 +1.69%
Canola May 13 $590.70, up $9.20 +1.58%
Canola Jul 13 $588.00, up $9.00 +1.55%
Milling Wheat Dec 12 $302.40, up $5.10 +1.72%
Milling Wheat Mar 13 $310.40, up $5.10 +1.67%
Milling Wheat May 13 $313.40, up $5.10 +1.65%
Durum Wheat Dec 12 $312.00, unchanged
Durum Wheat Mar 13 $316.00, unchanged
Durum Wheat May 13 $320.00, unchanged
Barley Dec 12 $245.00, unchanged
Barley Mar 13 $248.00, unchanged
Barley May 13 $249.00, unchanged
Chicago (per bushel)
Soybeans (P) Jan 13 $14.4925, up 24.5 cents +1.72%
Soybeans (P) Mar 13 $14.375, up 25.25 +1.79%
Soybeans (P) May 13 $14.1425, up 22.0 +1.58%
Soybeans (P) Jul 13 $14.07, up 21.5 +1.55%
Corn (P) Dec 12 $7.60, up 12.75 +1.71%
Corn (P) Mar 13 $7.64, up 12.75 +1.70%
Corn (P) May 13 $7.615, up 12.75 +1.70%
Oats (P) Dec 12 $3.73, up 4.25 +1.15%
Oats (P) Mar 13 $3.895, up 4.25 +1.10%
Oats (P) May 13 $3.9225, up 4.75 +1.23%
Minneapolis (per bushel)
Spring Wheat Dec 12 $9.3625, up 21.25 +2.32%
Spring Wheat Mar 13 $9.505, up 22.5 +2.42%
Spring Wheat May 13 $9.585, up 22.5 +2.40%
Spring Wheat Jul 13 $9.6025, up 23.25 +2.48%
The Bank of Canada noon rate for the loonie rose to $1.0064, up from $1.0051 the day before.
The U.S. dollar was 99.36 cents Cdn.
The Toronto Stock Exchange’s S&P/TSX composite index fell 73.42 points, or 0.6 percent, to close at 12,111.63.
Nearby crude oil in New York fell 56 cents to $87.18 per barrel.
The Dow Jones industrial average fell 89.24 points, or 0.69 percent, to close at 12,878.36.
The Standard & Poor’s 500 Index dropped 7.35 points, or 0.52 percent, to finish at 1,398.95.
The Nasdaq Composite Index fell 8.99 points, or 0.30 percent, to close at 2,967.79.
