The Canadian dollar rallied again Friday with rising crude oil, pressuring canola futures lower for a second day.
Rising crude helped soy oil to rally on the Chicago market where prices are in U.S. dollars, but the ICE Futures contract, priced in Canadian dollars, fell as the loonie climbed to US70.67 at noon, up almost a half cent from Thursday.
Crude oil rose on colder weather in the eastern U.S. and Europe that should increase the use of fuel oil and also prospects for more stimulus from Europe’s central bank.
While soy oil rose, soybeans dipped on weaker soy meal and forecasts for rain in Brazil.
Corn edged higher on short covering and a good weekly export sales number, but wheat dipped slightly.
March canola closed at $481.70, down $1.30.
Over the week the contact fell $3 or 0.6 percent.
For the week, nearby soybean futures fell 0.3 percent. Soy meal was down 0.8 percent and soy oil rose three percent.
Corn on a continuous chart gained about 1.9 percent for the week, capping the first two-week streak of higher prices since October, Reuters reported.
For the week, CBOT March wheat rose 1 ¾ cents per bushel or 0.4 percent, while Kansas City March hard winter wheat fell 3 ¼ cents and Minneapolis March spring wheat fell ¼ cent.
Forecasts for extreme cold in Russia and Ukraine in the coming days could stir weather concerns for wheat, although snow cover was expected to limit the risk of frost damage, analysts told Reuters.
Canadian producer deliveries of canola in the first 24 weeks of the crop year to Jan. 17 are 8.44 million tonnes, up 12 percent over last year at the same time. That is a record fast pace.
Canola deliveries are up because exports and domestic crush are also running at record paces.
It was interesting to note that canola exports in week 24 were 236,000 tonnes. Last year in the same week, only 52,000 tonnes were exported.
The canola crush in the week to Jan. 20 was 166,772 tonnes, up 2.4 percent from the week before. Industry capacity use was at 80.7, slightly below the average use for the year.
The crush for the year stands at 3.81 million tonnes, up 12.6 percent over last year at the same point.
Deliveries of wheat at 9.19 million tonnes, are up two percent over last year at the same time.
That is the best performance in many years, but is not in the same league as in the early 1990s. In 1991-92 total annual wheat exports peaked at 22.29 million tonnes. Last year, they were 18.77 million tonnes.
The International Grains Council report this week said the dry autumn in Ukraine reduced rapeseed acreage and damaged the condition of what was sown, reports Agrimoney.com.
The IGC report says that in an “optimistic scenario” Ukraine will harvest 1.1 million tonnes of rapeseed in 2016, down 700,000 tonnes.
That means Europe will be able to import less Ukrainian rapeseeds Europe’s own crop could fall short of last year’s total, with IGC forecasting a decline of 200,000 tonnes to 21.3 million.
This raises the potential for increased European imports from Australia or Canada later this year.
It is dry in North Africa this month, putting stress on wheat and durum crops.
Light crude oil nearby futures in New York soared up $2.66 to US$32.19 per barrel.
The Canadian dollar at noon was US70.67 cents, up from 70.21 cents the previous trading day. The U.S. dollar at noon was C$1.4151.
Stock markets posted their first positive week in 2016 after volatile trading when crude oil traded below $28 per barrel then and roared back Thursday and Friday on signs of more monetary stimulus and a cold snap in the eastern U.S. and Europe that could increase the amount of heating oil consumed.
The oil rally was welcome relief from the plunge in recent weeks, but many see it only as a pause before negative pressure resumes from the growing surplus and worries about global economic growth.
However, there was a bit of good economic news. U.S. existing home sales jumped nearly 15 percent in December, beating estimates and recovering from a 10.5 percent fall in November.
The Toronto Stock Exchange’s S&P/TSX composite index rose 353.7 points, or 2.94 percent, to close at 12,389.58.
The Dow Jones industrial average closed up 210.69 points, or 1.33 percent, to 16,093.37, the S&P 500 had gained 37.9 points, or 2.03 percent, to 1,906.89 and the Nasdaq Composite had added 119.12 points, or 2.66 percent, to 4,591.18.
For the week, the TSX composite rose 2.6 percent, the Dow rose 0.7 percent, the S&P 500 rose 1.4 percent and the Nasdaq rose 2.3 percent.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2016 481.70 -1.30 -0.27%
Canola May 2016 490.20 -1.00 -0.20%
Canola Jul 2016 495.30 -0.20 -0.04%
Canola Nov 2016 494.70 -0.40 -0.08%
Canola Jan 2017 496.50 -1.20 -0.24%
Milling Wheat Mar 2016 245.00 -1.00 -0.41%
Milling Wheat May 2016 247.00 -1.00 -0.40%
Milling Wheat Jul 2016 251.00 -1.00 -0.40%
Durum Wheat Mar 2016 334.00 unch 0.00%
Durum Wheat May 2016 342.00 unch 0.00%
Durum Wheat Jul 2016 342.00 unch 0.00%
Barley Mar 2016 190.00 unch 0.00%
Barley May 2016 194.00 unch 0.00%
Barley Jul 2016 196.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Mar 2016 876.5 -2 -0.23%
Soybeans May 2016 877.25 -1.75 -0.20%
Soybeans Jul 2016 882 -2.25 -0.25%
Soybeans Aug 2016 883.25 -2.5 -0.28%
Soybeans Sep 2016 882.25 -3 -0.34%
Soybeans Nov 2016 883.75 -3.5 -0.39%
Soybean Meal Mar 2016 268.5 -3.7 -1.36%
Soybean Meal May 2016 270.9 -3.3 -1.20%
Soybean Meal Jul 2016 273.5 -3.1 -1.12%
Soybean Oil Mar 2016 30.5 +0.56 +1.87%
Soybean Oil May 2016 30.69 +0.54 +1.79%
Soybean Oil Jul 2016 30.91 +0.53 +1.74%
Corn Mar 2016 370.25 +3.25 +0.89%
Corn May 2016 374.75 +3 +0.81%
Corn Jul 2016 379.75 +3 +0.80%
Corn Sep 2016 384.5 +3.25 +0.85%
Corn Dec 2016 392 +2.75 +0.71%
Oats Mar 2016 205.5 +1.75 +0.86%
Oats May 2016 211 +2.25 +1.08%
Oats Jul 2016 216.25 +1.75 +0.82%
Oats Sep 2016 221.75 +1.25 +0.57%
Oats Dec 2016 220.75 +1.25 +0.57%
Wheat Mar 2016 475.5 +0.5 +0.11%
Wheat May 2016 480.25 +0.5 +0.10%
Wheat Jul 2016 485.25 +0.25 +0.05%
Wheat Sep 2016 493.75 +0.5 +0.10%
Wheat Dec 2016 507.5 +0.5 +0.10%
Minneapolis
Spring Wheat Mar 2016 497 -3.25 -0.65%
Spring Wheat May 2016 503 -2.5 -0.49%
Spring Wheat Jul 2016 509 -2.5 -0.49%
Spring Wheat Sep 2016 519 -2.25 -0.43%
Spring Wheat Dec 2016 534.5 -2 -0.37%
Kansas City
Hard Red Wheat Mar 2016 470.75 -0.75 -0.16%
Hard Red Wheat May 2016 480.75 -1 -0.21%
Hard Red Wheat Jul 2016 490.75 -0.5 -0.10%
Hard Red Wheat Sep 2016 504 -0.5 -0.10%
Hard Red Wheat Dec 2016 523 -0.5 -0.10%
