Canola falls $14.40 over the week on falling vegoil prices

Canola futures fell Friday on weak vegetable oil markets and expectations for huge North American oilseed production this year.

November canola fell $14.40 per tonne on the week to close at $429.50 or $9.74 a bushel.

Soy oil has been weaker than soybeans. The soybean crush has increased to meet the need for meal, but that is leaving a surplus of soy oil.

Also, there is the added weight of falling palm oil prices because of building stocks in Indonesia and Malaysia.

Also, crude oil fell all through the week until today. Crude output is growing in the U.S. and OPEC. Today crude rose on the tensions between Ukraine and Russia.

The nearby soybean contract edged higher today on tight old crop supplies, but new crop November fell on expectation of a large harvest.

Prairie farmers are hoping to get rain from the frontal system that will cross the region this weekend. Alas, it does not appear to be a general rain but there could be locally heavy rain with the unsettled conditions and thunderstorm threat.

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Spring wheat rose Friday, but fell on the week with December down three percent on the week.

Today’s strength came from renewed worries about the conflict in eastern Ukraine. Overall though, wheat is under pressure from expectation of large global production.

Corn rose on Friday and over the week posted a gain of 13.5 cents a bushel in the December contract.

It was biggest weekly gain in months, driven by the USDA report on Tuesday that forecast the 2014 crop and the 2014-15 ending stocks at levels lower than what the trade expected.

However, the rally might be short lived as the weather continues mostly great for production in the Midwest.

An industry crop tour of the Midwest next week will shed more light on yield potential.

Also next week, on Thursday, Statistics Canada releases its first forecast of the Canadian crop.

ICE Futures Canada, dollars per tonne

Canola Nov 2014 429.50 -2.90 -0.67%

Canola Jan 2015 434.10 -3.40 -0.78%

Canola Mar 2015 436.10 -3.60 -0.82%

Canola May 2015 433.50 -3.60 -0.82%

Canola Jul 2015 430.30 -3.70 -0.85%

Milling Wheat Oct 2014 202.00 +2.00 +1.00%

Milling Wheat Dec 2014 208.00 +3.00 +1.46%

Milling Wheat Mar 2015 216.00 +3.00 +1.41%

Durum Wheat Oct 2014 250.00 unch 0.00%

Durum Wheat Dec 2014 256.00 unch 0.00%

Durum Wheat Mar 2015 257.00 unch 0.00%

Barley Oct 2014 135.00 -1.00 -0.74%

Barley Dec 2014 137.00 -1.00 -0.72%

Barley Mar 2015 138.00 -1.00 -0.72%

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

Chicago

Soybeans Sep 2014 1102.5 +4.25 +0.39%

Soybeans Nov 2014 1052 -4 -0.38%

Soybeans Jan 2015 1061 -3.75 -0.35%

Soybeans Mar 2015 1069 -3.75 -0.35%

Soybeans May 2015 1076.25 -3.75 -0.35%

Soybeans Jul 2015 1081.75 -3.75 -0.35%

Soybean Meal Sep 2014 388.3 +5.9 +1.54%

Soybean Meal Oct 2014 357.9 +2.4 +0.68%

Soybean Meal Dec 2014 353.5 +2.4 +0.68%

Soybean Oil Sep 2014 32.87 -0.64 -1.91%

Soybean Oil Oct 2014 32.95 -0.64 -1.91%

Soybean Oil Dec 2014 33.21 -0.65 -1.92%

Corn Sep 2014 365.75 +3.75 +1.04%

Corn Dec 2014 377 +3.5 +0.94%

Corn Mar 2015 390.25 +3.5 +0.90%

Corn May 2015 398.75 +3.5 +0.89%

Corn Jul 2015 405.5 +4 +1.00%

Oats Sep 2014 365 +5.75 +1.60%

Oats Dec 2014 334 +0.75 +0.23%

Oats Mar 2015 317.5 +0.25 +0.08%

Oats May 2015 310 unch 0.00%

Oats Jul 2015 309.5 +0.75 +0.24%

Wheat Sep 2014 551.25 +14 +2.61%

Wheat Dec 2014 563.5 +10.75 +1.94%

Wheat Mar 2015 583.5 +10.5 +1.83%

Wheat May 2015 595.25 +9.5 +1.62%

Wheat Jul 2015 603.25 +8 +1.34%

Minneapolis

Spring Wheat Sep 2014 612 +6.25 +1.03%

Spring Wheat Dec 2014 623.25 +7 +1.14%

Spring Wheat Mar 2015 637 +8.25 +1.31%

Spring Wheat May 2015 646.25 +8.25 +1.29%

Spring Wheat Jul 2015 653.75 +9 +1.40%

Kansas City

Hard Red Wheat Sep 2014 619.75 +11.75 +1.93%

Hard Red Wheat Dec 2014 634.25 +11 +1.76%

Hard Red Wheat Mar 2015 643.75 +10 +1.58%

Hard Red Wheat May 2015 648.25 +8.75 +1.37%

Hard Red Wheat Jul 2015 638.25 +8.75 +1.39%

Light crude oil nearby futures in New York rose $1.77 at $97.35 US per barrel.

The Bank of Canada noon rate for the loonie was 91.66 cents US, up slightly from 91.65 cents the previous trading day. The U.S. dollar at noon was $1.0910 Cdn.

Statistics Canada today corrected its July jobs report, which had shown terrible job creation when released.

The agency admitted it had made an error. Today the revised data showed 41,700 jobs were created in July, almost twice as many as the market expected. The unemployment rate dropped to 7.0 percent from 7.1 percent in June.

The good jobs news was outweighed by worries about the growing conflict between Ukraine and Russia over the Russian aid convoy.

In unofficial tallies —

The Toronto Stock Exchange’s S&P/TSX composite index closed up 13.06 points, or 0.09 percent, at 15,304.24.

The Dow Jones fell 50.67 points or 0.30 percent, to end at 16,662.91.

The S&P 500 dipped just 0.12 of a point or 0.01 percent to close at 1,955.06.

The Nasdaq Composite added 11.93 points or 0.27 percent, to finish at 4,464.93.

For the week, the TSX rose 0.7 percent, the Dow rose 0.7 percent, the S&P 500 gained 1.2 percent and the Nasdaq climbed 2.2 percent.