Canola tops $500 with help from rising crude oil and soybeans

November canola settled above $500 a tonne for the first time since June 20 with support from stronger crude oil and the soybean complex.

Canola has been on a tear higher since snow and rain stalled the Western Canada harvest, leaving millions of acres still in the field.

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But today’s rally had a lot of momentum from rising soybeans and soy oil.

They were helped by a sharp increase in crude oil values after the weekly U.S. petroleum inventory came in much smaller than expected.

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U.S. oil inventories have fallen in six of the past seven weeks.

That drove U.S. crude oil prices to the highest level since July of 2015. Some believe the crude is now overbought and due for a correction.

Soybeans futures were also helped by news of a large export sale.

“You are looking at a market that has seen this big rally in crude. Our demand is holding in, and there’s no farmer selling,” said Jack Scoville, analyst with the Price Futures Group in Chicago. “We had the 185,000 tonnes of soybeans (sold), which is not a big surprise, but still it’s new business,” Scoville said.

Corn held almost steady, a good sign considering the advance of the U.S. Midwest harvest, Reuters noted.

“The surprise continues to be a pretty resilient grain market complex; the grains could have easily given up hope against technical resistance and an overwhelmingly bearish supply situation that continues to build,” INTL FCStone chief commodities economist Arlan Suderman wrote in a note to clients.

While oil rose, the Canadian dollar was held back by comments from Bank of Canada that it will be hard to lift the country’s export sector. It cut its forecasts for growth and said that officials had discussed adding more monitary stimulus.

However, it kept the overnight lending rate at 0.5 percent, where it has been since July 2015.

Light crude oil nearby futures in New York were up $1.31 to US$51.60 per barrel.

The Canadian dollar at noon was US76.30 cents, down slightly from 76.31 cents the previous trading day. The U.S. dollar at noon was C$1.3107.

The rising oil price helped lift the Toronto stock market. Also, many companies during this quarterly earnings season are issuing stronger than expected results.

The Toronto Stock Exchange’s S&P/TSX composite index closed up 88.24 points, or 0.60 percent, at 14,840.49.

The Dow Jones industrial average rose 40.68 points, or 0.22 percent, to 18,202.62, the S&P 500 gained 4.69 points, or 0.22 percent, to 2,144.29 and the Nasdaq Composite added 2.58 points, or 0.05 percent, to 5,246.41.

Winnipeg ICE Futures Canada dollars per tonne

Canola Nov 2016 504.40 +6.70 +1.35%

Canola Jan 2017 511.40 +7.30 +1.45%

Canola Mar 2017 515.50 +7.50 +1.48%

Canola May 2017 516.90 +6.20 +1.21%

Canola Jul 2017 514.20 +6.60 +1.30%

Milling Wheat Dec 2016 235.00 +4.00 +1.73%

Milling Wheat Mar 2017 241.00 +4.00 +1.69%

Milling Wheat May 2017 245.00 +4.00 +1.66%

Durum Wheat Dec 2016 301.00 +5.00 +1.69%

Durum Wheat Mar 2017 308.00 +6.00 +1.99%

Durum Wheat May 2017 312.00 +6.00 +1.96%

Barley Dec 2016 132.50 unch 0.00%

Barley Mar 2017 134.50 unch 0.00%

Barley May 2017 135.50 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 2016 981.50 +9.00 +0.93%

Soybeans Jan 2017 990.50 +9.25 +0.94%

Soybeans Mar 2017 996.75 +9.25 +0.94%

Soybeans May 2017 1003.50 +9.00 +0.90%

Soybeans Jul 2017 1009.25 +8.75 +0.87%

Soybeans Aug 2017 1008.25 +8.75 +0.88%

Soybean Meal Dec 2016 306.40 +3.00 +0.99%

Soybean Meal Jan 2017 307.80 +3.00 +0.98%

Soybean Meal Mar 2017 309.20 +2.90 +0.95%

Soybean Oil Dec 2016 35.40 +0.33 +0.94%

Soybean Oil Jan 2017 35.67 +0.34 +0.96%

Soybean Oil Mar 2017 35.89 +0.33 +0.93%

Corn Dec 2016 357.50 +3.75 +1.06%

Corn Mar 2017 367.25 +3.75 +1.03%

Corn May 2017 374.00 +3.75 +1.01%

Corn Jul 2017 380.00 +3.50 +0.93%

Corn Sep 2017 386.25 +3.00 +0.78%

Oats Dec 2016 209.00 +5.25 +2.58%

Oats Mar 2017 206.50 +3.00 +1.47%

Oats May 2017 206.50 +1.25 +0.61%

Oats Jul 2017 208.50 -1.50 -0.71%

Oats Sep 2017 217.50 -1.50 -0.68%

Wheat Dec 2016 420.25 +0.25 +0.06%

Wheat Mar 2017 440.75 +0.75 +0.17%

Wheat May 2017 455.25 +1.25 +0.28%

Wheat Jul 2017 467.00 +1.50 +0.32%

Wheat Sep 2017 481.00 +1.25 +0.26%

Minneapolis

Spring Wheat Dec 2016 530.75 +3.00 +0.57%

Spring Wheat Mar 2017 534.00 +1.75 +0.33%

Spring Wheat May 2017 539.75 +1.50 +0.28%

Spring Wheat Jul 2017 546.75 +1.25 +0.23%

Spring Wheat Sep 2017 554.25 +1.50 +0.27%

Kansas City

Hard Red Wheat Dec 2016 425.25 +3.50 +0.83%

Hard Red Wheat Mar 2017 442.50 +3.75 +0.85%

Hard Red Wheat May 2017 454.00 +4.00 +0.89%

Hard Red Wheat Jul 2017 464.75 +4.00 +0.87%

Hard Red Wheat Sep 2017 479.00 +3.25 +0.68%

Chicago livestock futures in US¢/pound (rounded to two decimal places)

Live Cattle (P) Oct 2016 96.02 -1.73 -1.77%

Live Cattle (P) Dec 2016 97.12 -2.10 -2.12%

Live Cattle (P) Feb 2017 98.45 -2.18 -2.17%

Feeder Cattle (P) Oct 2016 119.02 -3.01 -2.47%

Feeder Cattle (P) Nov 2016 114.82 -3.21 -2.72%

Feeder Cattle (P) Jan 2017 110.85 -2.93 -2.58%

Lean Hogs (P) Dec 2016 41.18 +0.05 +0.12%

Lean Hogs (P) Feb 2017 48.15 -0.30 -0.62%

Lean Hogs (P) Apr 2017 56.20 -0.13 -0.23%

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