Canola up for sixth day as crop futures generally rally

Canola futures rose for a sixth day, part of a general up trend in crop markets on Wednesday.

The rise in canola continued to be modest with the November contract still well shy of the $500 a tonne mark, but January flirted with $500 mark.

Snow in parts of Alberta as well as rain in some regions and overnight frost all provided modest direct support for canola prices but the upside was limited by the expectation of a record large canola crop.

On Tuesday Statistics Canada issued new crop forecasts based on satellite monitoring and weather data. It pegged the canola crop at a new record high of 19.7 million tonnes, up 1.5 million from the August report, which was based on farmer survey in late July.

Last year’s canola crop was 19.6 million tonnes.

Canola today was supported by rising soybeans, pushed higher by a strong pace of U.S. exports.

Corn and wheat were supported by bargain buying after falling the past two sessions.

US DOLLAR RISES

The U.S. Federal Reserve kept interest rates steady today but it said in its policy statement said that it would begin to reduce the amount of stimulus it has in the market in October.

The Canadian dollar had been trading higher in the morning but it fell sharply near the close as the U.S. rose on the Fed news.

WEATHER

A drier trend in the Canadian prairies is expected over the next seven days.

Warmer weather is expected next week.

The U.S. hard red winter wheat region is expected to get significant moisture over the next seven days which will be helpful for wheat seeding and emergence.

EU CANOLA

Canola seeded area in the European Union will likely increase this fall as its price is attractive compared to cereals.

Area was discouraged in the last year or two because of the banning of pesticides to control flea beetles.

But confidence appears to be growing in alternative insect management approaches, analysts told Reuters News Agency.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 93 cents at US$50.41 per barrel.

In the afternoon, the Canadian dollar was trading around US81.14 cents, down from 81.46 cents the previous trading day. The U.S. dollar was C$1.2324.

The Toronto Stock Exchange composite rose 96.63 points or 0.63 percent to 15,389.60.

The Dow Jones set a new record high, climbing 41.79 points or 0.19 percent to 22,412.59.

The S&P 500 also closed at a record, up 1.59 points or 0.06 percent at 2,508.24.

The NASDQ fell 5.28 points or 0.08 percent at 6,456.04.

Winnipeg ICE Futures Canada dollars per tonne

Canola Nov 17   492.90s   +0.80   +0.16%

Canola Jan 18   499.70s   +0.90   +0.18%

Canola Mar 18   504.60s   +0.10   +0.02%

Canola May 18   508.20s   -0.30   -0.06%

Canola Jul 18   510.00s   -0.50   -0.10%

 

Milling Wheat Oct 17   224.00s   +3.00   +1.36%

Milling Wheat Dec 17   226.00s   +3.00   +1.35%

Milling Wheat Mar 18   231.00s   +1.00   +0.43%

 

Durum Wheat Oct 17   279.00s   unch   unch

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Durum Wheat Dec 17   283.00s   unch   unch

Durum Wheat Mar 18   286.00s   unch   unch

 

Barley Oct 17   145.00s   unch   unch

Barley Dec 17   148.00s   unch   unch

Barley Mar 18   151.00s   unch   unch

 

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.

 

Chicago

Soybeans Nov 17   970-0s   +4-4   +0.47%

Soybeans Jan 18   980-4s   +4-4   +0.46%

Soybeans Mar 18   989-6s   +4-4   +0.46%

Soybeans May 18   998-0s   +4-4   +0.45%

Soybeans Jul 18   1004-6s   +4-4   +0.45%

 

Soybean Meal Oct 17   306.3s   +1.3  +0.43%

Soybean Meal Dec 17   310.1s   +1.4   +0.45%

Soybean Meal Jan 18   312.1s   +1.5   +0.48%

 

Soybean Oil Oct 17   34.67s   +0.15   +0.43%

Soybean Oil Dec 17   34.91s   +0.15   +0.43%

Soybean Oil Jan 18   35.06s   +0.14   +0.40%

 

Corn Dec 17   350-0s   +1-6   +0.50%

Corn Mar 18   362-4s   +1-6   +0.49%

Corn May 18   371-0s   +1-6   +0.47%

Corn Jul 18   377-6s   +1-4   +0.40%

Corn Sep 18   384-0s   +1-4   +0.39%

 

Oats Dec 17   246-2s   +6-0   +2.50%

Oats Mar 18   252-2s   +4-4   +1.82%

Oats May 18   251-4s   +4-2   +1.72%

Oats Jul 18   248-2s   +3-2   +1.33%

Oats Sep 18   248-2s   +3-2   +1.33%

 

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Wheat Dec 17   449-6s   +6-6   +1.52%

Wheat Mar 18   469-6s   +5-6   +1.24%

Wheat May 18   483-2s   +5-2   +1.10%

Wheat Jul 18   494-4s   +5-2   +1.07%

Wheat Sep 18   508-4s   +5-0   +0.99%

 

Minneapolis

Spring Wheat Dec 17   621-4s   +4-2   +0.69%

Spring Wheat Mar 18   634-2s   +3-2   +0.52%

Spring Wheat May 18   638-2s   +2-0   +0.31%

Spring Wheat Jul 18   637-6s   +2-6   +0.43%

Spring Wheat Sep 18   629-4s   +1-2   +0.20%

 

Kansas City

Hard Red Wheat Dec 17   448-0s   +6-0   +1.36%

Hard Red Wheat Mar 18   466-0s   +6-2   +1.36%

Hard Red Wheat May 18   478-6s   +6-0   +1.27%

Hard Red Wheat Jul 18   495-6s   +6-2   +1.28%

Hard Red Wheat Sep 18   514-0s   +6-0   +1.18%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Oct 17   110.950s   +2.975   +2.76%

Live Cattle Dec 17   116.250s   +2.850   +2.51%

Live Cattle Feb 18   119.050s   +1.875   +1.60%

 

Feeder Cattle Sep 17   153.975s   +2.400   +1.58%

Feeder Cattle Oct 17   157.275s   +4.475   +2.93%

Feeder Cattle Nov 17   157.550s   +4.425   +2.89%

 

Lean Hogs Oct 17   58.650s   -1.475   -2.45%

Lean Hogs Dec 17   59.925s   +0.200   +0.33%

Lean Hogs Feb 18   64.500s   +0.125   +0.19%

 

 

 

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