Canola prices slumped Monday from more than $600 per tonne for the November futures contract to close at $593.60.
Canola Jul 11 $590.80, down $8.90
Canola Nov 11 $593.60, down $9.20
Canola Jan 12 $600.40, down $9.50
Canola Mar 12 $604.30, down $11.00
Western Barley Jul 11 $205, unchanged
Most U.S. markets were silent because of the Memorial Day holiday, but Winnipeg canola saw lots of action, as losses in Malaysian palm oil and European rapeseed prices combined with worsening crush margins for Canadian crushers to drive the market down.
Russia’s decision to lift its export ban on wheat in July also weighed on the market. European wheat futures fell about five percent as Russia announced on the weekend its decision to reopen its ports to exports, something that will most directly affect markets close to Europe.
Russia’s move was anticipated, but its confirmation gave buyers confidence that Russian supplies would soon be available and unlikely to be soon lost.
The affect of the Russian move on North American prices won’t be seen until Tuesday morning, when North American markets open, but traders assume wheat prices will fall there too.
Generally good seeding weather across the Prairies also undercut canola futures, but some weather problems in the U.S. supported prices.
Anxiety over European debt problems also depressed overall world markets, although both European and Asian stock markets were mixed.
The Canadian dollar at noon was $1.0241, up from the previous close of $1.0234. One U.S. dollar was worth 97.65 cents.
The price of Nymex crude oil fell slightly to $100.38. U.S. Gold rose slightly.
