Lingering support from the sharp cut in U.S. soybean production in Thursday’s USDA report lifted canola and soybean futures on Friday.
Corn was little changed after Thursday’s sharp gains on USDA’s crop outlook cut. Spring wheat futures edged slightly lower after yesterday’s gains but Chicago wheat ended slightly higher.
Crop futures were supported by slight gains in North American stock markets.
November canola closed at $550.20 per tonne, up $2.30.
Despite the wildly volatile markets, on the week, November canola fell only $5.20 or 1.1 percent.
With greater worries about the size of the U.S. crop, November soybeans were almost flat on the week, down only 1.25 cents.
November 2012 canola gained $9.10 on the week.
Friday’s gains in canola were supported by improved commercial buying, thought to be domestic crushers and perhaps new export business.
Gains were limited by thoughts that the Western Canadian crop in most places is developing well. Swathing has begun in some places.
The Canadian Oilseed Processors Association said members crushed 165,171 tonnes of canola between Aug. 1 and Aug. 10. In the same period a year ago the crush was 182,337.
Analysts remain concerned about the extreme drought in the southern U.S. plains where winter wheat seeding will begin in September.
The U.S. spring wheat and durum production outlooks were cut in Thursday’s report due to prevented seeding and the July heat wave.
Wheat might also be supported by livestock feed demand as feeders look for cheaper alternatives to scarce, expensive corn.
USDA also cut its seeded canola number to 1.09 million acres, down four percent from June and down 25 percent from last year. It did not have a production estimate.
Winnipeg (per tonne)
Canola Nov 11 $550.20, up $2.30
Canola Jan 12 $558.90, up $2.70
Canola Mar 12 $566.20, up $3.50
Canola May 12 $571.10, up $4.30
The previous day’s best basis was $10.01 under the November contract according to ICE Futures Canada in Winnipeg.
The July contract’s 14-day Relative Strength Index was 40. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Oct 11 $205, unchanged
Chicago (per bushel)
Soybeans Sep 11 $13.2775, up 3.0 cents
Soybeans Nov 11 $13.3475, up 3.0
Soybeans Jan 12 $13.4575, up 3.0
Corn Sep 11 $7.0175, down 0.75
Corn Dec 11 $7.145, up 0.5
Oats Sep 11 $3.45, up 1.0
Oats Dec 11 $3.55, up 0.5
Minneapolis (per bushel)
Spring Wheat Sep 11 $8.6125, down 1.25 cents
Spring Wheat Dec 11 $8.635, down 3.0
Spring Wheat Mar 12 $8.6825, down 5.5
Light crude oil nearby futures in New York fell 38 cents to $85.38 US per barrel.
The Canadian dollar at noon was $1.0122 US, up from $1.0109 the previous trading day. The U.S. dollar at noon was 98.79 cents Cdn.
Stock markets were slightly positive on Friday. Worries over French banks eased a little. There were conflicting reports on U.S. consumers.
A report said U.S. retail sales posted the biggest gains in four months in July, however another report said U.S. consumer sentiment fell in early August to the lowest level in more than three decades.
The Toronto Stock Exchange composite index unofficially closed up 2.4 points, or 0.02 percent, at 12,542.20.
The Standard & Poor’s 500 Index added 6.17 points, or 0.53 percent, to 1,178.81. For the week, the TSX composite rose 3.1 percent, the Dow fell 1.5 percent, the S&P 500 fell 1.7 percent and the Nasdaq lost one percent.
