Concerns that unrest in Ukraine might disrupt it grain exports and agricultural industry caused wheat and corn prices to jump higher on Monday.
Canola also rose despite a weak showing by soybeans.
Canola was supported by short covering, technical buying, a weaker loonie and stronger soy oil and palm futures.
Canola basis has also improved recently.
Palm oil hit a 1 ½ year high on concerns that dry weather in Malaysia could trim production.
Soybeans fell slightly on profit taking, technical weakness and signs that U.S. exports might be weakening a little.
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U.S. grains: Soybean futures jump on hopes for US export demand
Chicago Board of Trade soybean futures jumped on hopes for U.S. export demand on Wednesday, while corn futures rose for a third day to extend a recovery from contract lows, analysts said.
Australia’s state crop forecaster said canola acreage in that country could fall 17 percent to about 2.95 million tonnes, ABARES said, down from about 3.59 million tonnes last year.
Drought has dried soils, raising the expectation that farmers will switch to crops with a greater likelihood of germinating if it remains dry.
The Australian government expects wheat area this year will climb two percent, but because of a return to average yields after last year’s exceptional production, wheat production is forecasted to fall 8.2 percent to 24.795 million tonnes.
Chicago wheat futures surged almost five percent and corn rose 1.5 percent on the tension between Ukraine and Russia.
Minneapolis March wheat rose 3.73 percent and December climbed 2.3 percent.
Ukraine is the globe’s third largest corn exporter and sixth largest wheat exporter. Despite the growing tension, there is no actual disruption of Ukraine grain exports.
The revival in agricultural commodity prices is causing investment funds and speculators to pour in money, adding to the upward trend.
Larger-than-expected U.S. export inspections for wheat and corn were also bullish.
After the market closed, the USDA released updates of the condition of the U.S. winter wheat crop.
Largest producer Kansas saw the amount rated good to excellent drop to 34 percent, down one percentage point from the previous month.
Oklahoma ratings fell five percentage points over the month to 31 percent good to excellent.
Nebraska’s winter wheat crop was rated 43 percent good to excellent, a three percentage point drop from the start of February.
Texas is doing weekly reports. Wheat there was 15 percent good to excellent, down from 19 percent a week ago.
Though down, the ratings are still better than last year at this time.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2014 427.80 +9.80 +2.34%
Canola May 2014 437.20 +7.30 +1.70%
Canola Jul 2014 447.10 +7.40 +1.68%
Canola Nov 2014 464.10 +7.90 +1.73%
Canola Jan 2015 471.80 +8.20 +1.77%
Milling Wheat Mar 2014 201.00 +8.00 +4.15%
Milling Wheat May 2014 200.00 +6.00 +3.09%
Milling Wheat Jul 2014 200.00 +6.00 +3.09%
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 1407.25 -7 -0.49%
Soybeans May 2014 1409.25 -4.75 -0.34%
Soybeans Jul 2014 1381.5 -3.75 -0.27%
Soybeans Aug 2014 1330.75 -0.25 -0.02%
Soybeans Sep 2014 1235.75 +2 +0.16%
Soybeans Nov 2014 1171.5 +2.25 +0.19%
Soybean Meal Mar 2014 461.3 -6.6 -1.41%
Soybean Meal May 2014 450.5 -7.2 -1.57%
Soybean Meal Jul 2014 436.8 -6.8 -1.53%
Soybean Oil Mar 2014 42.11 +0.59 +1.42%
Soybean Oil May 2014 42.38 +0.59 +1.41%
Soybean Oil Jul 2014 42.54 +0.67 +1.60%
Corn Mar 2014 464 +6.5 +1.42%
Corn May 2014 470.5 +7 +1.51%
Corn Jul 2014 474.75 +7.25 +1.55%
Corn Sep 2014 474 +6 +1.28%
Corn Dec 2014 476.5 +5 +1.06%
Oats Mar 2014 528.5 +18 +3.53%
Oats May 2014 482.5 +20 +4.32%
Oats Jul 2014 415.5 +12.25 +3.04%
Oats Sep 2014 358.75 +3.75 +1.06%
Oats Dec 2014 352.5 +5.5 +1.59%
Wheat Mar 2014 626.75 +27.75 +4.63%
Wheat May 2014 631.5 +29.25 +4.86%
Wheat Jul 2014 635.75 +27.5 +4.52%
Wheat Sep 2014 643.25 +26.75 +4.34%
Wheat Dec 2014 655.25 +26.25 +4.17%
Minneapolis
Spring Wheat Mar 2014 695.75 +25 +3.73%
Spring Wheat May 2014 672.5 +16.25 +2.48%
Spring Wheat Jul 2014 671.75 +17.5 +2.67%
Spring Wheat Sep 2014 679.75 +17.75 +2.68%
Spring Wheat Dec 2014 688.5 +15.5 +2.30%
Kansas City
KCBT Red Wheat Mar 2014 701.25 +24.25 +3.58%
KCBT Red Wheat May 2014 700 +26 +3.86%
KCBT Red Wheat Jul 2014 694.75 +24.25 +3.62%
KCBT Red Wheat Sep 2014 699.75 +22.25 +3.28%
KCBT Red Wheat Dec 2014 710.75 +21.75 +3.16%
Light crude oil nearby futures in New York rose $2.33 at $104.92 US per barrel.
The Canadian dollar at noon was 90.16 cents US, down from 90.29 cents the previous trading day. The U.S. dollar at noon was $1.1092 Cdn.
The geopolitical worries over Ukraine and Russia drove down stock prices in U.A. markets but the TSX did better because of its heavier weighting in commodity stocks. Gold and oil rose.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 3.15 points, or 0.02 percent, at 14,212.74.
The Dow Jones industrial average fell 153.68 points or 0.94 percent, to end at 16,168.03.
The S&P 500 slid 13.72 points or 0.74 percent, to finish at 1,845.73.
The Nasdaq Composite dropped 30.818 points or 0.72 percent, to close at 4,277.301.
