July canola futures gain $10.70 over week on slow deliveries

By D’Arce McMillan

Saskatoon newsroom

Canola futures closed lower on Friday weighted down by weaker soybeans and soy oil.

But over the week, July canola gained $10.70 per tonne and November edged up 80 cents.

Slow farmer deliveries are the main reason for the old crop rally. The strength is not spilling into the new crop months because, even with the excess rain, traders expect there will be an ample canola crop this year.

July soybeans closed lower today but well off their lows as a last minute rally in soy meal added a boost.

New crop soybeans were supported by news that exporters reported a sale of 110,000 tonnes of soybeans to an unstated location for delivery in 2014-15 crop year.

Over the week, July soybeans fell 0.7 percent, the fourth straight week of losses, but November gained 0.8 percent on the week.

Soy oil closed lower today on a round of profit taking after gains earlier in the week.

Wheat closed lower on the day as traders took profits from the rally earlier in the week.

U.S. farmers are harvesting the hard red winter wheat crop, but rain is causing delays and hurting grain quality. Yields in Texas, Oklahoma and southern Kansas have been poor. It will be interesting to see how yields fair once the combines get into central Kansas where the drought was not so severe.

The problems with the winter wheat crop supported spring wheat prices. Over the week, July Minneapolis wheat rose 0.9 percent and December climbed 0.1 percent

July corn over the week gained 1.4 percent and December rose one percent. It was the first week in five that corn rose. The main reason was a feeling that the crop was over sold and that the price had fallen low enough to reflect the expectation of a big crop.

There has been excess rain in the Midwest and that too underpinned the corn market, but the forecast is for warmer weather, but no heat wave and that should be good for crop development.

 

Winnipeg ICE Futures Canada dollars per tonne

 

Canola Jul 2014       474.20       -2.60       -0.55%

Canola Nov 2014       461.40       -2.70       -0.58%

Canola Jan 2015       465.10       -4.00       -0.85%

Canola Mar 2015       466.20       -5.20       -1.10%

Canola May 2015       467.30       -5.90       -1.25%

 

Milling Wheat Jul 2014       203.00       -2.00       -0.98%

Milling Wheat Oct 2014       203.00       -3.00       -1.46%

Milling Wheat Dec 2014       207.00       -3.00       -1.43%

 

Durum Wheat Jul 2014       239.00       unch       0.00%

Durum Wheat Oct 2014       230.00       unch       0.00%

Durum Wheat Dec 2014       232.00       unch       0.00%

 

Barley Jul 2014       125.00       unch       0.00%

Barley Oct 2014       132.50       unch       0.00%

Barley Dec 2014       134.50       unch       0.00%

 

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

 

Chicago

Soybeans Jul 2014       1415.75       -5       -0.35%

Soybeans Aug 2014       1361.5       -7.5       -0.55%

Soybeans Sep 2014       1263.5       +0.5       +0.04%

Soybeans Nov 2014       1231.5       +4.25       +0.35%

Soybeans Jan 2015       1238.25       +4       +0.32%

Soybeans Mar 2015       1244.25       +3.75       +0.30%

 

Soybean Meal Jul 2014       459.2       +8       +1.77%

Soybean Meal Aug 2014       439.7       +3.6       +0.83%

Soybean Meal Sep 2014       415.7       +1.7       +0.41%

 

Soybean Oil Jul 2014       40.13       -0.48       -1.18%

Soybean Oil Aug 2014       40.23       -0.48       -1.18%

Soybean Oil Sep 2014       40.22       -0.47       -1.16%

 

Corn Jul 2014       453.25       +2.75       +0.61%

Corn Sep 2014       448.25       +4       +0.90%

Corn Dec 2014       452       +4.5       +1.01%

Corn Mar 2015       462.25       +4.5       +0.98%

Corn May 2015       469       +4.25       +0.91%

 

Oats Jul 2014       340       -7.25       -2.09%

Oats Sep 2014       340       -0.25       -0.07%

Oats Dec 2014       332       -7.25       -2.14%

Oats Mar 2015       328       -7.25       -2.16%

Oats May 2015       321.5       -7.25       -2.21%

 

Wheat Jul 2014       585.25       -8.25       -1.39%

Wheat Sep 2014       593.25       -9.25       -1.54%

Wheat Dec 2014       615.75       -8       -1.28%

Wheat Mar 2015       634.5       -8.25       -1.28%

Wheat May 2015       645.75       -8.75       -1.34%

 

Minneapolis

Spring Wheat Jul 2014       690.5       -12.5       -1.78%

Spring Wheat Sep 2014       694.75       -7       -1.00%

Spring Wheat Dec 2014       704.75       -7.25       -1.02%

Spring Wheat Mar 2015       713.75       -7.75       -1.07%

Spring Wheat May 2015       719.25       -6.75       -0.93%

 

Kansas City

KC HRW Wheat Jul 2014       720.75       -8.5       -1.17%

KC HRW Wheat Sep 2014       717.75       -9       -1.24%

KC HRW Wheat Dec 2014       723       -10       -1.36%

KC HRW Wheat Mar 2015       725.5       -9.75       -1.33%

KC HRW Wheat May 2015       723       -8.25       -1.13%

Light crude oil nearby futures in New York rose 83 cents at $107.26 US per barrel.

The Canadian dollar at noon was 92.89 cents US, up from 92.35 cents the previous trading day. The U.S. dollar at noon was $1.0766 Cdn.

Canada’s annual inflation rate hit a 27-month high of 2.3 percent in May from two percent in April, Reuters reported.

Core inflation, which excludes some volatile items like gasoline, rose to 1.7 percent, the highest since July 2012, from 1.4 percent in April. That might cause the Bank of Canada to lessen its focus on low inflation and consider policy to address rising inflation, such a hiking borrowing costs.

The Dow and S&P 500 index closed the week at record highs as investors brushed off geopolitical concerns about Iraq and focused on the Federal Reserve’s comments indicating that it will keep interest rates low for a long period of time.

On the day, the TSX closed down 3.11 points, or 0.02 percent, at 15,109.10.

The Dow Jones industrial average rose 25.62 points or 0.15 percent, to end at 16,947.08.

The S&P 500 gained 3.39 points or 0.17 percent, to 1,962.87.

The Nasdaq Composite added 8.71 points or 0.20 percent, to 4,368.04.

For the week, the TSX composite rose 0.7 percent, the Dow rose one percent, the S&P 500 climbed 1.4 percent and the Nasdaq gained 1.3 percent.

With indexes at or near record highs there was talk that there could be a downside correction coming.

One Response

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  1. edward on

    Seeded acres with canola are obviously and understandable way down in Western Canada and seeded traditionally very late into poor and since then deteriorating conditions. Thankfully so, or prices would be even lower. Burns good in a wood furnace however which helps with those high energy costs. Best if you can buy it, as growing your own is very much more expensive.

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