Canola futures rise on flooding; soybeans corn lower

New crop canola climbed more than one percent Thursday on a bounce back after recent declines and on the crop damage caused by the recent excess rain.

Benchmark November closed at $455.90, up $5.30. Cash prices are now based on the November contract.

Soon to expire July closed at $475.00, down $14.60.

Keystone Agricultural Producers today warned that this year’s flooding could equal or exceed 2011 when 3.5 million acres in the province were flooded out. Saskatchewan premier Brad Wall has said the damage in his province will also likely exceed 2011.

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Alberta harvest just ahead of average pace

The harvesting of all crops in Alberta reached 42 per cent complete as of Sept. 9, compared to the five-year average of 40 per cent. The provincial agriculture department noted combing was highlighted by little or no rain.

Canola gained even with the headwind created by the rising loonie, which topped 94 cents US today. It has risen about two cents since the start of June.

In addition to the problems caused by flooding and excess rain, large parts of the crop are maturing slower than normal.

Saskatchewan Agriculture’s crop report today said two-thirds of oilseeds are delayed in the province. About 61 percent of cereals and 55 percent of pulse crops are behind.

The flooding, mud, washouts and soft roads are preventing grain deliveries in southeast Saskatchewan and southwestern Manitoba.

Rising soy oil, lifted by short covering, offered modest support to canola, but soybeans fell again, pressured down by the record seeded acreage in the U.S. and favourable weather in the Midwest. U.S. markets closed early for the July 4 holiday.

The nearby soybean futures contract fell 3.1 percent this week.

Analyst Informa today forecast the U.S. soybean crop at 3.7 billion bushels, up from its previous estimate of 3.591 billion bu.

Corn also fell because of the good production outlook in the U.S.

Corn fell 5.8 percent for the holiday-shortened week. That was the biggest weekly decline since the week that ended Sept 13, 2013.

Informa pegged the corn crop at 13.731 billion bu., down from 13.766 on reduced acreage. It raised its corn yield forecast by 1.5 bu. per acre to 165, in line with USDA’s forecast for 165.3 bu. per acre. Last year’s corn yield was 158.8 bu. per acre and in the 2012 drought it was 123.4.

Conditions are so good in many parts of the U.S. that talk is building that average corn yields could climb even higher.

Wheat rose Friday with spring wheat climbing more than one percent on bargain buying and concern about excess rain in Canada and North Dakota.

For the week though, wheat was down, with CBOT September wheat down 14 ¼ cents or 2.4 percent, Kansas City September down 34 ½ cents or 4.8 percent and Minneapolis September down 20 cents or 2.9 percent.

Winnipeg ICE Futures Canada dollars per tonne

Canola Jul 2014 475.00 -14.60 -2.98%

Canola Nov 2014 455.90 +5.30 +1.18%

Canola Jan 2015 459.50 +5.00 +1.10%

Canola Mar 2015 460.20 +4.70 +1.03%

Canola May 2015 459.10 +3.90 +0.86%

Milling Wheat Jul 2014 193.00 +3.00 +1.58%

Milling Wheat Oct 2014 193.00 +2.00 +1.05%

Milling Wheat Dec 2014 197.00 +2.00 +1.03%

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 1387.75 -4.75 -0.34%

Soybeans Aug 2014 1299.75 -15 -1.14%

Soybeans Sep 2014 1166.75 -13.5 -1.14%

Soybeans Nov 2014 1133.5 -8 -0.70%

Soybeans Jan 2015 1142 -7.75 -0.67%

Soybeans Mar 2015 1150 -8 -0.69%

Soybean Meal Jul 2014 447 -5.3 -1.17%

Soybean Meal Aug 2014 417.7 -9 -2.11%

Soybean Meal Sep 2014 384.6 -5.7 -1.46%

Soybean Oil Jul 2014 38.56 +0.09 +0.23%

Soybean Oil Aug 2014 38.67 +0.1 +0.26%

Soybean Oil Sep 2014 38.72 +0.07 +0.18%

Corn Jul 2014 417 -1.5 -0.36%

Corn Sep 2014 409.5 -2.75 -0.67%

Corn Dec 2014 415.25 -2.75 -0.66%

Corn Mar 2015 426.75 -2.5 -0.58%

Corn May 2015 434.25 -2.5 -0.57%

Oats Jul 2014 391 +24.25 +6.61%

Oats Sep 2014 351.25 +4.5 +1.30%

Oats Dec 2014 345.75 +3.75 +1.10%

Oats Mar 2015 334 +0.5 +0.15%

Oats May 2015 325.75 -1 -0.31%

Wheat Jul 2014 568 +6.25 +1.11%

Wheat Sep 2014 579.5 +4 +0.70%

Wheat Dec 2014 603.75 +5.5 +0.92%

Wheat Mar 2015 627.5 +5.75 +0.92%

Wheat May 2015 642.25 +5.25 +0.82%

Minneapolis

Spring Wheat Jul 2014 660.75 +9 +1.38%

Spring Wheat Sep 2014 672.5 +7.5 +1.13%

Spring Wheat Dec 2014 682.25 +6.5 +0.96%

Spring Wheat Mar 2015 691 +3.5 +0.51%

Spring Wheat May 2015 699.25 +6.25 +0.90%

Kansas City

KC HRW Wheat Jul 2014 697 +14 +2.05%

KC HRW Wheat Sep 2014 687.25 +5.5 +0.81%

KC HRW Wheat Dec 2014 697 +6.75 +0.98%

KC HRW Wheat Mar 2015 703.5 +7.5 +1.08%

KC HRW Wheat May 2015 706.25 +8.25 +1.18%

Light crude oil nearby futures in New York dropped 42 cents at $104.06 US per barrel.

The Canadian dollar at noon was 94.04 cents US, up from 93.75 cents the previous trading day. The U.S. dollar at noon was $1.0634 Cdn.

The U.S. Department of Labor said the American economy created 288,000 jobs during June, more than expected. The U.S. unemployment rate dropped to 6.1 percent from 6.3. This indicates that the economic slow down in the first quarter is not lingering.

The jobs data drove the Dow and the S&P 500 to new record highs. The Dow closed above 17,000 points for the first time ever.

The TSX composite also reached a record high early in the day, but closed down 2.60 points or 0.02 percent at 15,207.11.

Dow Jones industrial average rose 92.02 points or 0.54 percent, to 17,068.26.

The S&P 500 gained 10.82 points or 0.55 percent, to 1,985.44.

The Nasdaq Composite added 28.19 points or 0.63 percent, to 4,485.93.

U.S. markets are closed Friday for the July 4 holiday.

For the week, the Dow rose 1.3 percent, the S&P 500 was up 1.25 percent and the Nasdaq advanced two percent.