WINNIPEG (Reuters) — ICE Canada canola futures rose on Friday for a second straight day, lifted by strength in U.S. soybeans and concerns about Canadian crop weather.
Concerns about dry conditions, and a forecast risk of frost for early September added strength to canola, a trader said.
Despite unfavourable weather in parts of the Canadian Prairies, traders and analysts expect record-large canola production this year.
Fifty-seven percent of canola in Alberta is in good to excellent condition.
November canola gained $6.70 to $506.70 per tonne.
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November-January canola spread traded 868 times.
Chicago Board of Trade November soybeans rose on bargain-buying.
NYSE MATIF November rapeseed ended flat and Malaysian October palm oil rose.
The Canadian dollar was trading at $1.2570 to the U.S. dollar, or 79.55 U.S. cents at 1:50 p.m. CDT (1850 GMT).
Canada weekly canola crushings fall 9.3 percent.
U.S. corn, soybean and wheat futures firmed on Friday, but outlooks for good weather for crop development limited attempts at a rally, traders said.
All three commodities posted weekly losses.
“Ongoing pressure from large supplies and lack of a weather threat kept markets on the defensive this week,” Farm Futures analyst Bryce Knorr said in a note to clients.
Traders cited technical buying and short-covering as supportive to the grains and oilseeds on Friday.
CBOT November soybean futures settled up 4-3/4 cents at $9.37-3/4 a bushel, slightly below its session high.
CBOT December corn was 1-1/2 cents higher at $3.65-3/4 a bushel and September wheat futures were up two cents at $4.16 a bushel.
“Wheat prices are trying to stabilize,” consultancy Agritel said in a research note. “The current level of prices is triggering some bargain buying.”
For the week, wheat was off five percent, soybeans were down 0.7 percent and corn was down 2.6 percent.
Seasonal supply pressures from big harvests in Russia and elsewhere in the Black Sea export region along with chart-based selling momentum pushed wheat futures in Paris to new lows on Friday.
Weather forecasts looked relatively favourable for Midwest corn and soybean crops, although there was still uncertainty as to whether showers would reach all of the areas affected by very dry conditions earlier this summer.
“Grain prices will trade largely sideways in the coming weeks as wheat harvests are nearly finished and weather conditions remain favourable for upcoming Northern Hemisphere corn and soybean harvests,” BMI Research analysts said in a note.
The weather forecast also added pressure to the wheat market as rain was expected to recharge soil moisture in winter wheat areas ahead of planting this fall.
Soybeans have been underpinned this week by renewed export demand, suggesting a window for U.S. exports despite record harvest supplies in rival exporter Brazil.
Light crude oil nearby futures in New York were up $1.42 US$48.51 per barrel.
In the afternoon, the Canadian dollar was trading around US79.53 cents, up from 78.88 cents the previous trading day. The U.S. dollar was C$1.2574.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 17 506.70s +6.70 +1.34%
Canola Mar 18 514.50s +6.90 +1.36%
Canola May 18 516.70s +7.10 +1.39%
Canola Jul 18 517.20s +6.60 +1.29%
Milling Wheat Oct 17 258.00s -1.00 -0.39%
Milling Wheat Dec 17 261.00s -1.00 -0.38%
Milling Wheat Mar 18 267.00s -1.00 -0.37%
Durum Wheat Oct 17 324.00s -1.00 -0.31%
Durum Wheat Dec 17 325.00s -1.00 -0.31%
Barley Oct 17 145.00s unch unch
Barley Dec 17 148.00s unch unch
Barley Mar 18 151.00s unch unch
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.
Chicago
Soybeans Sep 17 937-4s +7-2 +0.78%
Soybeans Nov 17 937-6s +4-6 +0.51%
Soybeans Jan 18 945-6s +4-4 +0.48%
Soybeans Mar 18 953-6s +4-2 +0.45%
Soybeans May 18 960-6s +4-0 +0.42%
Soybean Meal Sep 17 297.2s +1.1 +0.37%
Soybean Meal Oct 17 298.7s +1.0 +0.34%
Soybean Oil Sep 17 33.61s +0.40 +1.20%
Soybean Oil Oct 17 33.74s +0.40 +1.20%
Soybean Oil Dec 17 33.97s +0.42 +1.25%
Corn Sep 17 352-0s +1-4 +0.43%
Corn Dec 17 365-6s +1-4 +0.41%
Corn Mar 18 377-6s +1-4 +0.40%
Corn May 18 384-0s +1-6 +0.46%
Corn Jul 18 390-0s +1-6 +0.45%
Oats Sep 17 254-6s -3-4 -1.36%
Oats Dec 17 258-6s +0-6 +0.29%
Oats Mar 18 259-6s +0-6 +0.29%
Oats Jul 18 263-2s +0-2 +0.10%
Wheat Sep 17 416-0s +2-0 +0.48%
Wheat Dec 17 442-4s +1-6 +0.40%
Wheat Mar 18 465-2s +1-4 +0.32%
Wheat May 18 479-6s +0-4 +0.10%
Wheat Jul 18 493-0s +0-2 +0.05%
Minneapolis
Spring Wheat Sep 17 668-6s -1-4 -0.22%
Spring Wheat Dec 17 682-4s -1-6 -0.26%
Spring Wheat Mar 18 682-2s -2-2 -0.33%
Spring Wheat Jul 18 662-4s -2-2 -0.34%
Kansas City
Hard Red Wheat Sep 17 414-4s +0-2 +0.06%
Hard Red Wheat Dec 17 442-2s +0-2 +0.06%
Hard Red Wheat Mar 18 460-6s +0-2 +0.05%
Hard Red Wheat May 18 475-0s unch unch
Hard Red Wheat Jul 18 492-6s -0-2 -0.05%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Aug 17 106.375s -0.750 -0.70%
Live Cattle Oct 17 105.900s -0.325 -0.31%
Live Cattle Dec 17 107.850s -0.425 -0.39%
Feeder Cattle Aug 17 140.500s +0.025 +0.02%
Feeder Cattle Sep 17 140.025s -0.700 -0.50%
Feeder Cattle Oct 17 139.925s -0.550 -0.39%
Lean Hogs Oct 17 66.125s -0.800 -1.20%
Lean Hogs Dec 17 61.325s -0.475 -0.77%
Lean Hogs Feb 18 66.000s -0.300 -0.45%
