Nov canola falls 0.6 percent on week

WINNIPEG, CHICAGO Sept 26 (Reuters) – ICE Canada canola futures eased on Friday and recorded a small weekly loss, weighed down by weakness in soybeans and soybean oil.

Commercial hedge pressure also pressured canola, as farmers delivered the harvest.

Canola was underpinned by a weak Canadian dollar and forecasts for cooler, wetter weather in Western Canada next week, with much crop still to be harvested.

November canola fell $1 to $395.30 per tonne. Registered 0.6 percent weekly loss.

Malaysian November palm oil slipped 1 percent.

Canada weekly canola crushings fall 6.2 percent to 134,704 tonnes. That represented a capacity use of 76.5 percent.

U.S. corn futures slumped to a five-year low Friday while soybeans notched a fresh four-year low amid ideal weather conditions for record harvests in the Midwestern crop belt while new highs in the dollar made the supplies less competitive in global markets.

Wheat futures were mostly lower, pressured by prospects of a record global crop this season.

The U.S, dollar widened gains over a basket of other currencies, giving shippers in Europe and South America more room to undercut United States corn, soybeans and wheat.

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“You have a wall of grain coming at you – more than enough to meet demand,” said Tom Fritz, analyst at brokerage EGF Group in Chicago. “The market is trying to find a level where the demand is, and prices are telling us we haven’t found it.”

Chicago Board of Trade soybean futures posted the largest declines in the grains complex today, with further pressure by news that top global soy importer China has suspended the import approval process for an unnamed genetically modified variety.

China also will celebrate Golden Week beginning next week – a time that typically sees a slowdown in buying.

Weather during the next five days will remain largely ideal for the U.S. harvest, with no freeze expected and only minimal chances of heavy rainfall, the Commodity Weather Group said in a note to clients.

“We will get a lot of beans cut in the next three days. The attitude is that the producer will go after his beans first and let the corn dry down,” Fritz added.

“Corn has some decent moisture and if (farmers) want to pay to dry it, that adds insult to injury.”

Prices for each crop capped weekly declines and headed for steep quarterly declines ahead of the final trading days of the third quarter next week.

The International Grains Council on Thursday raised its forecast for the 2014-15 global wheat crop to a record level due to an improved outlook in the European Union and Ukraine, adding to a picture of ample supply.

An expected drop in production in No. 4 exporter Australia failed to stem concern about excess supplies.

Australia’s wheat production is expected to drop 11 percent this year as a dry spring in some of the country’s key producing states curbs yields, a Reuters survey showed.

“This, in itself, is hardly likely to be enough for the wheat price to make any sort of noticeable recovery, for the plentiful crops in the northern hemisphere, where harvesting is almost complete, have caused supply to grow considerably,” Commerzbank said in a market note.

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ICE Futures Canada, dollars per tonne

Canola Nov 2014 395.30 -1.00 -0.25%

Canola Jan 2015 402.90 -0.50 -0.12%

Canola Mar 2015 410.90 +0.20 +0.05%

Canola May 2015 418.60 +0.80 +0.19%

Canola Jul 2015 425.70 +1.40 +0.33%

Milling Wheat Oct 2014 188.00 -1.00 -0.53%

Milling Wheat Dec 2014 193.00 -1.00 -0.52%

Milling Wheat Mar 2015 202.00 unch 0.00%

Durum Wheat Oct 2014 303.20 unch 0.00%

Durum Wheat Dec 2014 309.70 unch 0.00%

Durum Wheat Mar 2015 310.70 unch 0.00%

Barley Oct 2014 123.50 unch 0.00%

Barley Dec 2014 125.50 unch 0.00%

Barley Mar 2015 126.50 unch 0.00%

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

Chicago

Soybeans Nov 2014 910.25 -12.5 -1.35%

Soybeans Jan 2015 918.75 -12.75 -1.37%

Soybeans Mar 2015 927 -12.5 -1.33%

Soybeans May 2015 935.25 -12.5 -1.32%

Soybeans Jul 2015 941.25 -12.5 -1.31%

Soybeans Aug 2015 944.25 -12.5 -1.31%

Soybean Meal Oct 2014 307.2 -5.2 -1.66%

Soybean Meal Dec 2014 301.1 -2.8 -0.92%

Soybean Meal Jan 2015 298.9 -2.9 -0.96%

Soybean Oil Oct 2014 31.92 -0.7 -2.15%

Soybean Oil Dec 2014 31.99 -0.71 -2.17%

Soybean Oil Jan 2015 32.27 -0.71 -2.15%

Corn Dec 2014 323 -3 -0.92%

Corn Mar 2015 335.75 -3.25 -0.96%

Corn May 2015 344.25 -3.25 -0.94%

Corn Jul 2015 351.5 -3.25 -0.92%

Corn Sep 2015 358.75 -3.5 -0.97%

Oats Dec 2014 328.75 -2.5 -0.75%

Oats Mar 2015 316.5 -0.75 -0.24%

Oats May 2015 310.75 -1 -0.32%

Oats Jul 2015 306.5 -3 -0.97%

Oats Sep 2015 310.75 -3 -0.96%

Wheat Dec 2014 474.25 +0.25 +0.05%

Wheat Mar 2015 487.5 -0.25 -0.05%

Wheat May 2015 497 unch 0.00%

Wheat Jul 2015 503.75 +0.25 +0.05%

Wheat Sep 2015 515 unch 0.00%

Minneapolis

Spring Wheat Dec 2014 533.25 -3 -0.56%

Spring Wheat Mar 2015 548.75 -3 -0.54%

Spring Wheat May 2015 560.5 -2 -0.36%

Spring Wheat Jul 2015 572 -1.5 -0.26%

Spring Wheat Sep 2015 583.25 -1.5 -0.26%

Kansas City

Hard Red Wheat Dec 2014 563.75 -0.5 -0.09%

Hard Red Wheat Mar 2015 567 -1 -0.18%

Hard Red Wheat May 2015 569.75 -0.75 -0.13%

Hard Red Wheat Jul 2015 563.75 +0.5 +0.09%

Hard Red Wheat Sep 2015 575.25 unch 0.00%

Light crude oil nearby futures in New York rose $1.01 at $93.54 US per barrel.

The Bank of Canada noon rate for the loonie was 89.57 cents US, down from 90.04 cents the previous trading day. The U.S. dollar at noon was $1.1164 Cdn.

Investors were encouraged by data that showed the U.S. economy grew at its fastest pace in 2-1/2 years in the second quarter.

The Toronto Stock Exchange composite rose 133.20 points or 0.89 percent to close the week at 15,026.77. Blackberry posted good gains on quarterly report that showed a smaller than expected loss. For the week, the index fell 1.6 percent.

U.S. stocks ended higher on Friday, with the S&P 500 rallying back above a key technical level, but the advance was not enough to offset recent declines, and major indexes closed out their worst week of the past eight.

Based on the latest available data, the Dow Jones industrial average rose 166.26 points, or 0.98 percent, to 17,112.06, the S&P 500 gained 16.72 points, or 0.85 percent, to 1,982.71 and the Nasdaq Composite added 45.45 points, or 1.02 percent, to 4,512.19.

For the week, the Dow fell 1 percent, the S&P lost 1.4 percent and the Nasdaq dropped 1.5 percent. It was the worst week for all three since the week ending Aug 1.