"Currency moves were the big shakers in the crop market on Thursday.
The U.S. dollar jumped higher after release of the minutes of a meeting of the Federal Reserve that showed that a June interest rate hike was likely.
The prospect of an early interest rate increase pushed the U.S. buck sharply higher and that initially pressured all American crop futures markets lower.
ICE Futures canola also fell, even though the loonie weakened by about a penny.
But later in the morning the U.S. currency gave back some of the gains and crop futures bounced back, led higher by soy meal, which closed higher on the day. Soy meal caught fire April 8 and has jumped 40 percent higher since then while soy oil has generally fallen since then.
Vegetable oil prices have been limited by a faster-than-expected recovery in palm oil production, which had been trimmed during the winter by El Nino drought.
Even with the late rally today, soybeans closed the day lower but only slightly, with new crop November down only four cents or 0.38 percent.
For canola, the July contract closed up 50 cents or 0.1 percent at $523.10 a tonne.
New crop November closed down 10 cents or 0.02 percent at $519.70.
Canola was also supported by talk of new export sales to China.
The market, and Alberta farmers alike, are keen to see if forecasts for significant and much needed moisture in large parts the province later today and on Friday will prove correct.
Today the rain in western Alberta has turned to snow and and the Peace region got snowfall warnings early in the afternoon of 10 to 15 centimetres.
The moisture is also expected to drift into southwestern Saskatchewan.
The expectation for rain on Monday in southern Manitoba appears to be reduced in latest forecast.
The Canadian Grain Commission’s weekly report said that in the week to May 15 canola exports totaled 328,800 tonnes, well up from the 133,800 tonnes the previous week.
Canadian wheat exports were slower at 228,200 tonnes, down from an impressive 498,800 tonnes the week before.
Agriculture Canada’s monthly supply and demand report on Wednesday revised down its expectation for 2016–17 canola carryout to a very low 700,000 tonnes.
The department’s analysts forecast a 15.4 million tonne canola crop based on the acreage in the March seeding intentions report and a projected average yield of 33.3 bushels an acre, down from 38 bu. in 2015.
However, Prairie farmers almost always wind up seeding more canola than they expected in the March report.
Chicago corn and wheat closed down more than two percent while Minneapolis spring wheat was down about 1.5 percent.
New crop December corn closed below $4 a bushel at $3.97 ¼, however that was up from the day’s low of $3.91 ¾.
Light crude oil nearby futures in New York were down three cents to US$48.16 per barrel.
The Canadian dollar at noon was US76.25 cents, down more than one cent from 77.35 cents the previous trading day. The U.S. dollar at noon was C$1.3116.
The Toronto Stock Exchange composite closed down 8.69 points or 0.06 percent at 13,817.32.
The Dow Jones industrial average fell 91.42 points, or 0.52 percent, to 17,435.2, the S&P 500 lost 7.61 points, or 0.37 percent, to 2,040.02 and the Nasdaq Composite dropped 26.59 points, or 0.56 percent, to 4,712.53."