Market wrap: Canola futures fall 1.3 percent on week

Canola futures ended a down week on a down note Friday and posted a two-month low, pressured by commercial hedging.

March canola fell $2.50 to close at $475.40 per tonne, down 0.52 percent, touching its lowest price since Nov. 30. It fell 1.3 percent for the week.

American crop futures rose, on bargain buying and ideas that dry weather in Argentina could trim soy and corn yields.

Soybeans recovered a little from Thursday’s declines that were triggered by China cancelling a contract for soy.

Dry weather in North Africa also threatens crops, particularly wheat and durum.

But wheat gains were held in check by the weak U.S. export picture and news that Russia’s agriculture minister has rejected proposals to change the grain export tax regime,

Early in the week there was speculation that the government would be asked to increase the tax on wheat exports. Then there was a wire story saying the tax on wheat might be lowered but the tax on corn and barley would increase.

Today, the proposals went to the Russian agriculture minister and he decided to leave the taxes as they are currently.

India’s weather has improved for crops this month. Its agriculture minister expects wheat production will exceed last year’s disappointing crop.

For the week, March canola fell $6.30 a tonne or 1.3 percent, partly on a modest improvement in the loonie’s value.

U.S. soybean futures over the week rose 0.6 percent, soy oil was up 1.4 percent and soy meal was 1.3 percent higher.

Corn edged up 1.75 cents or 0.5 percent.

Canada’s canola crush slowed this week, to 144,553 tonnes, down about 13 percent from the week before and only 70 percent of capacity. To date, the average capacity use has been about 81 percent.

Still, the crush total to date is well ahead of last year at this point.

The Canadian Grain Commission said canola exports were only 89,300 tonnes in week 25, down from 236,000 the week before. However, in the year so far, canola exports are up 17.4 percent.

Light crude oil nearby futures in New York were up 40 cents to US$33.62 per barrel.

The Canadian dollar at noon was US71.02 cents, down from 71.06 cents the previous trading day. The U.S. dollar at noon was C$1.4080.

U.S. stock markets surged on strong results at Microsoft and on Japan’s decision to cut its interest rate. The Canadian market was buoyed by the results of the Alberta oil royalty review that keeps royalties unchanged.

The Toronto Stock Exchange’s S&P/TSX composite index closed up 223.44 points, or 1.77 percent, at 12,815.37.

The Dow Jones industrial average ended 2.47 percent higher at 16,466.30 while the S&P 500 gained 46.88 points or 2.48 percent higher to end at 1,940.24. The Nasdaq Composite surged 2.38 percent to 4,613.95.

For the week, the TSX composite rose 3.4 percent, the Dow gained 2.3 percent, the S&P added 1.7 percent and the Nasdaq increased 0.5 percent.

That left the Dow down 5.5 percent for the month and the Nasdaq 7.9 percent lower, its largest monthly loss since May 2010.

Winnipeg ICE Futures Canada dollars per tonne

Canola Mar 2016 475.40 -2.50 -0.52%

Canola May 2016 485.00 -2.30 -0.47%

Canola Jul 2016 490.60 -2.30 -0.47%

Canola Nov 2016 489.70 -1.80 -0.37%

Canola Jan 2017 491.20 -2.40 -0.49%

Milling Wheat Mar 2016 237.00 +2.00 +0.85%

Milling Wheat May 2016 239.00 +2.00 +0.84%

Milling Wheat Jul 2016 243.00 +2.00 +0.83%

Durum Wheat Mar 2016 322.00 unch 0.00%

Durum Wheat May 2016 330.00 unch 0.00%

Durum Wheat Jul 2016 330.00 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 882.25 +14.5 +1.67%

Soybeans May 2016 884.5 +14 +1.61%

Soybeans Jul 2016 890 +13.75 +1.57%

Soybeans Aug 2016 891.75 +13.75 +1.57%

Soybeans Sep 2016 890.75 +13 +1.48%

Soybeans Nov 2016 893 +13 +1.48%

Soybean Meal Mar 2016 272.4 +5.5 +2.06%

Soybean Meal May 2016 274.4 +5.4 +2.01%

Soybean Meal Jul 2016 276.6 +5.6 +2.07%

Soybean Oil Mar 2016 30.88 +0.19 +0.62%

Soybean Oil May 2016 31.09 +0.19 +0.61%

Soybean Oil Jul 2016 31.33 +0.2 +0.64%

Corn Mar 2016 372 +6.5 +1.78%

Corn May 2016 376.75 +6.25 +1.69%

Corn Jul 2016 381.5 +6.25 +1.67%

Corn Sep 2016 386 +6.25 +1.65%

Corn Dec 2016 393.25 +5.75 +1.48%

Oats Mar 2016 200.75 +1.75 +0.88%

Oats May 2016 208.5 +3.25 +1.58%

Oats Jul 2016 215 +3.5 +1.65%

Oats Sep 2016 220.5 +3.25 +1.50%

Oats Dec 2016 217.5 +1.75 +0.81%

Wheat Mar 2016 479.25 +7 +1.48%

Wheat May 2016 485 +7 +1.46%

Wheat Jul 2016 490.5 +6.5 +1.34%

Wheat Sep 2016 499.5 +6.75 +1.37%

Wheat Dec 2016 512.75 +6 +1.18%

Minneapolis

Spring Wheat Mar 2016 500 +4.75 +0.96%

Spring Wheat May 2016 505.5 +5.25 +1.05%

Spring Wheat Jul 2016 512 +5 +0.99%

Spring Wheat Sep 2016 521.75 +4.75 +0.92%

Spring Wheat Dec 2016 536 +4.25 +0.80%

Kansas City

Hard Red Wheat Mar 2016 472 +7.25 +1.56%

Hard Red Wheat May 2016 482.25 +6.75 +1.42%

Hard Red Wheat Jul 2016 492.25 +6.5 +1.34%

Hard Red Wheat Sep 2016 505.75 +6.5 +1.30%

Hard Red Wheat Dec 2016 525.25 +6.5 +1.25%

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