Canola futures edged higher on Friday and posted a modest $4.30 a tonne gain over the week.
Soy meal led the market higher on Friday, but soy oil was barely changed.
Soybeans and meal were supported by forecasts for growing dry areas in Argentina, but that was offset by forecast for rain in Brazil. The dry weather in Argentina raises fears that the developing La Nina will deliver a dry season to the world’s largest soybean meal exporter.
Corn and wheat rose, mostly on short covering.
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Speculators hold a near record large short position. Talk that there might be new export sales coming was the trigger to cause speculators to unwind some short positions.
CANOLA MOVEMENT SHRINKS
After a spectacular movement for canola last week, things slowed in the week to Nov. 12.
Canola exports fell to 133,000 tonnes, down from a record high 470,000 tonnes the week before.
Wheat exports for the week were 358,300 tonnes, up from 238,400.
Although wheat exports in the week rose, it was a slower week generally for offshore crop movement with the total at 868,300 tonnes, down from 1.219 million the week before. Only eight ships were cleared at Vancouver, down from 14 the week before. The vessel line up rose to 20 ships from 16.
At Prince Rupert, one ship was cleared, down from three the week before. The line up rose to eight from six.
RAILWAY COMMENTS
CN Rail had the following comments about the week to Nov. 11.
“Vancouver terminals lost more than 200 unload opportunities because of terminal issues (minor derailments, computer issues, slow unloading); an additional 400 unloads were missed due to CN and CP trains falling back, causing “terminal out of car time.” A late-week CP mainline outage is causing bunching of traffic destined to Vancouver terminals into Week 16. Weather was not an issue in Week 15.
“The Prince Rupert pipeline continues to lighten as shippers favour other lanes, and lack of weekend unloading limits terminal throughput.”
CP Rail’s report had this to say:
“This week’s numbers reflect some impact from a derailment in a strategically challenging location in British Columbia late on the evening of Nov. 9. The incident did not involve dangerous goods, nor did it result in any injuries or public safety issues. CP expects to see further impacts from this incident in Week 16”
CANOLA CRUSH
After a good showing last week, the domestic canola crush fell to 176,517 tonnes down almost 10 percent. That represented capacity use of just under 80 percent compared to more than 83 percent in the year so far.
The total to date was 2.63 million tonnes, still behind last year’s 2.68 million.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were up $1.41 at US$56.55 per barrel. Crude has risen recently on cuts by OPEC, but the market is also concerned that production increases in the United States could undermine that effort.
In the afternoon, the Canadian dollar was trading around US78.43 cents, up slightly from 78.41 cents the previous trading day. The U.S. dollar was C$1.2750.
The S&P/TSX composite index rose 63.20 points, or 0.40 per cent to 15,998.57.
The Dow Jones Industrial Average fell 100.12 points, or 0.43 percent, to 23,358.24, the S&P 500 lost 6.79 points, or 0.26 percent, to 2,578.85 and the Nasdaq Composite dropped 10.50 points, or 0.15 percent, to 6,782.79.
For the week, the TSX composite fell 0.2 percent, the Dow fell 0.27 percent, the S&P 500 fell 0.13 percent, and Nasdaq was down 0.47 percent.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Jan 18 519.40s +2.00 +0.39%
Canola Mar 18 527.20s +2.10 +0.40%
Canola May 18 531.10s +2.10 +0.40%
Canola Jul 18 533.90s +2.10 +0.39%
Canola Nov 18 507.20s +3.00 +0.60%
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 Jan 18 990-4s +18-4 +1.90%
Soybeans Mar 18 1001-4s +18-2 +1.86%
Soybeans May 18 1011-0s +18-2 +1.84%
Soybeans Jul 18 1019-4s +18-0 +1.80%
Soybeans Aug 18 1020-2s +17-2 +1.72%
Soybean Meal Dec 17 318.2s +7.7 +2.48%
Soybean Meal Jan 18 320.0s +7.5 +2.40%
Soybean Meal Mar 18 323.1s +7.6 +2.41%
Soybean Oil Dec 17 34.44s +0.01 +0.03%
Soybean Oil Jan 18 34.59s unch unch
Soybean Oil Mar 18 34.80s -0.01 -0.03%
Corn Dec 17 343-0s +6-4 +1.93%
Corn Mar 18 355-0s +6-0 +1.72%
Corn May 18 363-4s +6-0 +1.68%
Corn Jul 18 371-2s +6-0 +1.64%
Corn Sep 18 378-4s +6-0 +1.61%
Oats Dec 17 257-0s -5-2 -2.00%
Oats Mar 18 272-2s -5-0 -1.80%
Oats May 18 279-0s -5-4 -1.93%
Oats Jul 18 282-0s -6-2 -2.17%
Oats Sep 18 280-0s -5-6 -2.01%
Wheat Dec 17 427-2s +5-6 +1.36%
Wheat Mar 18 443-4s +5-4 +1.26%
Wheat May 18 454-2s +4-4 +1.00%
Wheat Jul 18 466-6s +4-0 +0.86%
Wheat Sep 18 481-2s +3-6 +0.79%
Minneapolis
Spring Wheat Dec 17 635-0s +4-6 +0.75%
Spring Wheat Mar 18 650-0s +4-6 +0.74%
Spring Wheat May 18 656-0s +4-0 +0.61%
Spring Wheat Jul 18 657-2s +4-6 +0.73%
Spring Wheat Sep 18 639-6s +2-0 +0.31%
Kansas City
Hard Red Wheat Dec 17 422-0s +5-0 +1.20%
Hard Red Wheat Mar 18 439-4s +5-0 +1.15%
Hard Red Wheat May 18 452-2s +5-0 +1.12%
Hard Red Wheat Jul 18 469-4s +4-4 +0.97%
Hard Red Wheat Sep 18 486-4s +4-2 +0.88%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Dec 17 118.850s -0.700 -0.59%
Live Cattle Feb 18 124.675s -0.450 -0.36%
Live Cattle Apr 18 124.875s -0.500 -0.40%
Feeder Cattle Jan 18 151.725s -2.175 -1.41%
Feeder Cattle Mar 18 150.125s -1.975 -1.30%
Feeder Cattle Apr 18 150.175s -2.050 -1.35%
Lean Hogs Dec 17 60.650s +0.550 +0.92%
Lean Hogs Feb 18 67.075s +0.500 +0.75%
Lean Hogs Apr 18 71.150s +0.275 +0.39%
