Canola was little changed Tuesday but wheat and corn posted another day of strong gains.
Canola struggled to add to Monday’s rally, which was sparked by harvest delays in the United States.
The weekly USDA crop progress report yesterday said only 20 percent of the soybean crop had been harvested as of Oct. 5, 15 percentage points behind the five-year average.
But soybeans failed to hold support above its 20-day moving average, a key technical point the benchmark November contract has not closed above since Aug. 8.
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Feed Grains Weekly: Price likely to keep stepping back
As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
So soybeans wound up closing lower and canola followed suit.
On Monday French crop watcher increased its estimate of the 2014 European Union rapeseed crop to 23.8 million tonnes, up 2.6 percent from 23.2 million last month.
It also said it expected the EU rapeseed area for the 2015 crop will fall about three percent to about 16 million acres due to the weak price.
Growers in Europe are also nervous about how well their rapeseed seedlings will fare without neonicotinoids to combat flea beetles. The insecticide was banned because of the worry that it hurts bees.
Wheat and corn extend the rally.
December Chicago wheat closed up three percent and Minneapolis spring wheat rose about 2.5 percent.
Funds hold a large net short position in Chicago wheat, leaving the market vulnerable to bouts of short covering following a four-year low set in late September, Reuters noted.
Although the world supply of wheat is ample this year, the market is noting production problems in Australia, where it is too dry in the east, and in Argentina.
Bloomberg reported that about 20 percent of the maturing wheat crop in Argentina might be at risk of damage from wet weather in the next 10 days.
The U.S. Department of Agriculture on Monday said the American spring wheat harvest was 96 percent complete.
It said the U.S. winter wheat crop was 56 percent planted, ahead of the five-year average of 53 percent.
Corn futures also climbed Tuesday supported by technical buying and short covering linked to the harvest rain delays.
USDA said the corn harvest was 17 percent complete, behind the five-year average of 32 percent done.
Corn has risen in the past five trading days, with December gaining more than five percent in the biggest rally since March.
Rain over the next 10 days in the southern Midwest and in Mississippi delta will further delay harvest progress.
The U.S. dollar index, a measure against six major world currencies, has weakened a little since peaking on Friday, and that also provided support for U.S. grain prices.
Traders are squaring their positions ahead of the USDA Oct. 10 supply and demand report. They have made a lot of money on their short positions and are taking profits now through short covering.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2014 412.90 -0.40 -0.10%
Canola Jan 2015 419.20 -0.40 -0.10%
Canola Mar 2015 426.00 -0.50 -0.12%
Canola May 2015 431.60 -0.70 -0.16%
Canola Jul 2015 435.60 -1.20 -0.27%
Milling Wheat Oct 2014 212.00 +6.00 +2.91%
Milling Wheat Dec 2014 216.00 +5.00 +2.37%
Milling Wheat Mar 2015 224.00 +4.00 +1.82%
Durum Wheat Oct 2014 320.00 unch 0.00%
Durum Wheat Dec 2014 326.50 unch 0.00%
Durum Wheat Mar 2015 327.50 unch 0.00%
Barley Oct 2014 116.50 +2.00 +1.75%
Barley Dec 2014 118.50 +2.00 +1.72%
Barley Mar 2015 120.50 +1.00 +0.84%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Nov 2014 940.75 -1.5 -0.16%
Soybeans Jan 2015 949.25 -1.25 -0.13%
Soybeans Mar 2015 957.75 -0.5 -0.05%
Soybeans May 2015 965.5 +1 +0.10%
Soybeans Jul 2015 971.75 +2 +0.21%
Soybeans Aug 2015 974.25 +2.25 +0.23%
Soybean Meal Oct 2014 327 +6.7 +2.09%
Soybean Meal Dec 2014 312.6 +3.7 +1.20%
Soybean Meal Jan 2015 311 +4.2 +1.37%
Soybean Oil Oct 2014 32.96 -0.36 -1.08%
Soybean Oil Dec 2014 33.1 -0.35 -1.05%
Soybean Oil Jan 2015 33.37 -0.33 -0.98%
Corn Dec 2014 340.5 +8 +2.41%
Corn Mar 2015 353.5 +8.25 +2.39%
Corn May 2015 362.25 +8.5 +2.40%
Corn Jul 2015 370 +8.25 +2.28%
Corn Sep 2015 378 +8.25 +2.23%
Oats Dec 2014 351.25 +0.75 +0.21%
Oats Mar 2015 335.5 +2 +0.60%
Oats May 2015 328.5 +2.75 +0.84%
Oats Jul 2015 321.25 +2.25 +0.71%
Oats Sep 2015 323.75 +2.25 +0.70%
Wheat Dec 2014 506.25 +14.75 +3.00%
Wheat Mar 2015 518.25 +14.75 +2.93%
Wheat May 2015 525.5 +13.25 +2.59%
Wheat Jul 2015 533.5 +12.75 +2.45%
Wheat Sep 2015 545.5 +12.25 +2.30%
Minneapolis
Spring Wheat Dec 2014 565.5 +13.75 +2.49%
Spring Wheat Mar 2015 579.75 +13 +2.29%
Spring Wheat May 2015 589.5 +12.5 +2.17%
Spring Wheat Jul 2015 600 +12.25 +2.08%
Spring Wheat Sep 2015 611 +12.25 +2.05%
Kansas City
Hard Red Wheat Dec 2014 588.25 +12.75 +2.22%
Hard Red Wheat Mar 2015 589.75 +14.25 +2.48%
Hard Red Wheat May 2015 592.25 +13.75 +2.38%
Hard Red Wheat Jul 2015 587 +12.25 +2.13%
Hard Red Wheat Sep 2015 598.75 +12 +2.05%
Light crude oil nearby futures in New York dropped $1.49 at $88.85 US per barrel.
The Canadian dollar at noon was 89.43 cents US, down from 89.49 cents the previous trading day. The U.S. dollar at noon was $1.1182 Cdn.
In another sign of Europe’s economic weakness, Germany’s industrial output plunged four percent in August in the biggest fall in more than five years.
In unofficial tallies —
The TSX composite fell 166.67 points or 1.13 percent to 14,576.45.
The Dow Jones industrial average was down 274.64 points, or 1.62 percent, to 16,717.27, the S&P 500 was down 29.89 points, or 1.52 percent, to 1,934.93 and the Nasdaq Composite was down 69.60 points, or 1.56 percent, to 4,385.20.
