Canola falls as loonie jumps a penny on Thursday

A stronger loonie and good crop development weather pressured canola futures lower on Thursday.

Soy oil was also lower as were old crop soybeans, but new crop soybeans edged higer on seeding delay worries.

Canola broke down below a couple of technical support levels, creating further negative pressure.

Elwynn Taylor of Iowa State University today at the World Pork Congress in Iowa noted that crops that develop with good moisture early do not develop extensive root systems and are vulnerable during summer dry periods.

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He notes that the current year in Iowa, the leading corn and soybean production state, is very much like 1947, which was one of the five worst years for crop yields in state history.

See Ed White’s coverage of the pork congress, including what Taylor said about the corn crop, here.

The loonie gained about one cent over the U.S. buck. The loonie rally was supported by new Bank of Canada governor Stephen Poloz said he expected that a recovery in foreign demand should help Canadian exports.

The comments led traders to believe that the bank won’t follow other central banks in new stimulus moves and will retain its bias toward higher interest rates in the future.

The loonie also benefited from downward pressure on the U.S. buck, which fell as traders braced for an expected disappointing jobs report on Friday.

Kansas and Chicago wheat fell, but new crop Minneapolis edged higher on worries about slow planting in North Dakota.

A USDA agriculture attaché report on Russia’s grain crop this week was mostly upbeat about production putting grain production at 91 million tonnes of which 53 million would be wheat. There was a dry period in the southern exporting region a few weeks back but then rain fell.

Russia’s deputy agriculture minister this put wheat production at 54-55 million tonnes. USDA’s May foreast was 56 million tonnes.

The attaché expects grain exports to reach 24 million tonnes in 2013-14, but from last year’s drought reduced 16 million .

Winnipeg ICE Futures Canada dollars per tonne

Canola Jul 2013 619.90 -9.60 -1.53%

Canola Nov 2013 556.40 -8.10 -1.43%

Canola Jan 2014 557.40 -8.70 -1.54%

Canola Mar 2014 553.90 -8.40 -1.49%

Canola May 2014 549.20 -6.70 -1.21%

Milling Wheat Jul 2013 294.00 unch 0.00%

Milling Wheat Oct 2013 294.00 unch 0.00%

Milling Wheat Dec 2013 294.00 unch 0.00%

Durum Wheat Jul 2013 301.90 unch 0.00%

Durum Wheat Oct 2013 294.90 unch 0.00%

Durum Wheat Dec 2013 299.40 unch 0.00%

Barley Jul 2013 244.00 unch 0.00%

Barley Oct 2013 194.00 unch 0.00%

Barley Dec 2013 199.00 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 2013 1527.25 -4.75 -0.31%

Soybeans Aug 2013 1449.75 -5 -0.34%

Soybeans Sep 2013 1355.25 +1.25 +0.09%

Soybeans Nov 2013 1305.75 +5.75 +0.44%

Soybeans Jan 2014 1310.75 +5.75 +0.44%

Soybeans Mar 2014 1310.25 +6 +0.46%

Soybean Meal Jul 2013 454 -1.9 -0.42%

Soybean Meal Aug 2013 430.6 -2.1 -0.49%

Soybean Meal Sep 2013 408.8 +0.8 +0.20%

Soybean Oil Jul 2013 48.16 -0.14 -0.29%

Soybean Oil Aug 2013 48.18 -0.09 -0.19%

Soybean Oil Sep 2013 47.99 -0.06 -0.12%

Corn Jul 2013 663.25 +2.5 +0.38%

Corn Sep 2013 578 +7 +1.23%

Corn Dec 2013 548.25 +6 +1.11%

Corn Mar 2014 558.75 +6 +1.09%

Corn May 2014 566 +6 +1.07%

Oats Jul 2013 398.5 +14 +3.64%

Oats Sep 2013 385.5 +8.25 +2.19%

Oats Dec 2013 370.5 +3.5 +0.95%

Oats Mar 2014 375.5 +3 +0.81%

Oats May 2014 377.75 +3 +0.80%

Wheat Jul 2013 697.75 -3.75 -0.53%

Wheat Sep 2013 705.5 -3.5 -0.49%

Wheat Dec 2013 720.5 -2.25 -0.31%

Wheat Mar 2014 735.5 -1.75 -0.24%

Wheat May 2014 744.5 -2.5 -0.33%

Minneapolis

Spring Wheat Jul 2013 820.25 +4.25 +0.52%

Spring Wheat Sep 2013 805 +0.5 +0.06%

Spring Wheat Dec 2013 811.75 +1.25 +0.15%

Spring Wheat Mar 2014 823.25 +1.5 +0.18%

Spring Wheat May 2014 829 +0.25 +0.03%

Kansas City

KCBT Red Wheat Jul 2013 738.5 -4.75 -0.64%

KCBT Red Wheat Sep 2013 746 -5.25 -0.70%

KCBT Red Wheat Dec 2013 763 -4.75 -0.62%

KCBT Red Wheat Mar 2014 776.5 -3.25 -0.42%

KCBT Red Wheat May 2014 784.75 -3.25 -0.41%

Light crude oil nearby futures in New York rose $1.02 at $94.76 US per barrel.

The Canadian dollar at noon was 97.68 cents US, up from 96.67 cents the previous trading day. The U.S. dollar at noon was $1.0238 Cdn.

In unofficial tallies —

The Toronto Stock Exchange’s S&P/TSX composite index closed down 34.32 points, or 0.28 percent, at 12,409.33.

The Dow Jones industrial average rose 78.72 points, or 0.53 percent, to close at 15,039.31.

The Standard & Poor’s 500 Index was up 13.50 points, or 0.84 percent, at 1,622.40.

The Nasdaq Composite Index was up 22.58 points, or 0.66 percent, at 3,424.05.

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