Canola futures closed slightly higher on Friday as crop market calmed a little after heavy losses through the week.
November canola closed at $496.90 up $3.20 on the day but down $19.60 from the closing price a week ago Friday.
Today there was a perception that the heavy losses in canola were overdone. Also the loonie dropped a little, which added support to Canadian crop prices.
Gains were limited by weaker soy oil and by generally favourable weather in Western Canada and in the U.S. Midwest. However, the cool temperatures overnight in some areas of the Prairies — last night it fell below 5C at Fort Qu’Appelle, Sask., — have some producers jittery about what they might experience in August.
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The forecast for the weekend and early next week on the Prairies is for cooler than normal temperatures, with highs in the low 20s.
The five-day rain forecast for the U.S. show little rain reaching the dry areas of western Iowa, eastern Nebraska and eastern South Dakota. The best hope for rain in that area is next Wednesday.
In the most recent U.S. drought monitor western and southern Iowa and large parts of Missouri fell back into the lowest category of drought designated “abnormally dry.”
The week’s drop in old crop prices was caulked up to a couple of things:
• The sharply lower cash prices that seemed to indicate U.S. farmers had delivered a fair amount of their remaining old crop stocks early in the week.
• There were also rumours that China had released three million tonnes of soybeans from government stocks, reducing the need for imported product. However, data from USDA today indicated that China was still buying soybeans. New crop soybeans rose a little on Friday.
The Canadian Oilseed Processors Association said members crushed 117,283 tonnes of canola in the week ending July 24, down about five percent from the week before. That represented a capacity use of slightly more than 70 percent.
As the end of the crop year approaches, COPA members have crushed 6.6 million tonnes of canola, down only about 1,500 tonnes from the same time last year.
The U.S. Wheat Quality Council pegged U.S. spring wheat yields at 44.9 bushels per acre following three-day crop tour, matching its 2012 forecast. The Western Producer will have a full report on the council’s tour in the Aug. 1 edition.
Brazilian analyst Safras e Mercado projected the country’s 2013-14 soybean crop at a record 88.17 million tonnes. It was the firm’s first forecast for the new crop, which starts planting in September.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2013 496.90 +3.20 +0.65%
Canola Jan 2014 500.50 +2.80 +0.56%
Canola Mar 2014 504.40 +3.10 +0.62%
Canola May 2014 506.90 +2.80 +0.56%
Canola Jul 2014 509.50 +2.50 +0.49%
Milling Wheat Oct 2013 257.00 unch 0.00%
Milling Wheat Dec 2013 260.00 unch 0.00%
Milling Wheat Mar 2014 267.00 unch 0.00%
Durum Wheat Oct 2013 296.00 unch 0.00%
Durum Wheat Dec 2013 301.00 unch 0.00%
Durum Wheat Mar 2014 311.00 unch 0.00%
Barley Oct 2013 194.00 unch 0.00%
Barley Dec 2013 199.00 unch 0.00%
Barley Mar 2014 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 Aug 2013 1349.75 -5.5 -0.41%
Soybeans Sep 2013 1275.25 +8.5 +0.67%
Soybeans Nov 2013 1228.5 +4.5 +0.37%
Soybeans Jan 2014 1233.75 +4.75 +0.39%
Soybeans Mar 2014 1235.75 +5.75 +0.47%
Soybeans May 2014 1233.75 +7.75 +0.63%
Soybean Meal Aug 2013 430.3 -17.5 -3.91%
Soybean Meal Sep 2013 404 +6.3 +1.58%
Soybean Meal Oct 2013 373.6 +4.6 +1.25%
Soybean Oil Aug 2013 43.58 -0.23 -0.52%
Soybean Oil Sep 2013 43.62 -0.21 -0.48%
Soybean Oil Oct 2013 43.65 -0.17 -0.39%
Corn Sep 2013 492 -4 -0.81%
Corn Dec 2013 476 -2.75 -0.57%
Corn Mar 2014 488.75 -2.5 -0.51%
Corn May 2014 496.5 -2.75 -0.55%
Corn Jul 2014 503 -2.5 -0.49%
Oats Sep 2013 331.25 -6.75 -2.00%
Oats Dec 2013 323.25 -3.75 -1.15%
Oats Mar 2014 328.25 -4.75 -1.43%
Oats May 2014 328.5 -5.25 -1.57%
Oats Jul 2014 333.5 -5.25 -1.55%
Wheat Sep 2013 650.25 +1 +0.15%
Wheat Dec 2013 661.5 +0.75 +0.11%
Wheat Mar 2014 671.5 -0.25 -0.04%
Wheat May 2014 677.75 -0.5 -0.07%
Wheat Jul 2014 674.5 unch 0.00%
Minneapolis
Spring Wheat Sep 2013 736.5 -1.25 -0.17%
Spring Wheat Dec 2013 747.75 -1.25 -0.17%
Spring Wheat Mar 2014 759.5 -2 -0.26%
Spring Wheat May 2014 767 -1.25 -0.16%
Spring Wheat Jul 2014 773 -1.75 -0.23%
Kansas City
KCBT Red Wheat Sep 2013 691.5 -0.75 -0.11%
KCBT Red Wheat Dec 2013 701.25 -0.75 -0.11%
KCBT Red Wheat Mar 2014 709 -1.5 -0.21%
KCBT Red Wheat May 2014 712.25 -1.25 -0.18%
KCBT Red Wheat Jul 2014 700.75 -0.5 -0.07%
Light crude oil nearby futures in New York dropped 79 cents at $104.70 US per barrel.
The Canadian dollar at noon was 97.17 cents US, down from 97.25 cents the previous trading day. The U.S. dollar at noon was $1.0291 Cdn.
The U.S. Federal Reserve meets again next week to discuss policy and that revived concerns about the timing of its plan to dial back its stimulus program.
In early unofficial tallies —
The Toronto Stock Exchange’s S&P/TSX composite index closed down 21.24 points, or 0.17 percent, at 12,647.90
The Dow Jones industrial average rose 2.99 points, or 0.02 percent, to close at 15,558.60.
The Standard & Poor’s 500 Index climbed 1.39 points, or 0.08 percent, at 1,691.64.
The Nasdaq Composite Index rose 7.98 points, or 0.22 percent, at 3,613.16.
For the week, the TSX composite rose 0.15 percent, the Dow rose 0.1 percent, the S&P 500 was flat and the Nasdaq rose 0.7 percent.
