Canola bounces back

Your reading list

Canola futures bounced back Friday after several days of losses, gaining $7.80 per tonne to finish at $578.70 for nearby contracts.

A rebound in soybean prices aided canola’s recovery. March soybean futures increased 24.5 cents per bu. Friday, following losses of 90 cents per bu. from Monday to Thursday.

Analysts attributed the canola and soybean gains to a market bounce, amid mixed signals on the status of the soybean crop in Brazil.

One weather analyst cited dry weather in parts of Brazil as a threat to the crop, while another report suggested the Brazilian crop is faring quite well. Parana, a Brazilian state that is the country’s second biggest soybean producer, reported increased planting of the oilseed Friday. The state upped its soybean production forecast to 15.3 million tonnes, up slightly from earlier predictions.

Read Also

B.C. ostriches culled, CFIA confirms

Ostriches on an embattled Edgewood, B.C. farm have been culled after a prolonged legal battle, the Canadian Food Inspection Agency has confirmed.

Canola, meanwhile, recovered from moderate losses during the week. Traders attributed the stability of canola, relative to soybeans, to tight fundamentals for canola. Agriculture Canada has predicted a 46 percent decline in global canola stocks in 2012-13, caused by production problems in Canada and the European Union.

Minneapolis wheat futures fell moderately Friday, losing 2.25 cents per bu. to settle at $8.815 per bu. A winter storm this week dumped snow and rain from Colorado to Indiana, relieving parched soil conditions in many states. However, the storm missed Oklahoma and Texas, where severe drought conditions persists.

After dropping below $7 per bushel for the first time since July, nearby corn futures gained 5.5 cents to sit at $7.02. Analysts remain bullish on corn going into 2013 because stocks are still tight.

Prices:

Winnipeg (per tonne)

Canola Jan 13 $582.10, up $7.80

Canola Mar 13 $578.70, up $9.10

Canola May 13 $575.40, up $8.80

Canola Jul 13 $573.40, up $9.20

Milling Wheat Mar 13 $290.50, unchanged

Milling Wheat May 13 $293.50, unchanged

Milling Wheat Jul 13 $295.50, unchanged

Durum Wheat Mar 13 $312.40, unchanged

Durum Wheat May 13 $316.40, unchanged

Durum Wheat Jul 13 $319.40, unchanged

Barley Mar 13 $247.00, down $1.00

Barley May 13 $248.00, down $1.00

Barley Jul 13 $248.50, down $1.00

Chicago (per bushel)

Soybeans (P) Jan 13 $14.3075, up 22 cents

Soybeans (P) Mar 13 $14.2925, up 24.5

Soybeans (P) May 13 $14.1875, up 24

Soybeans (P) Jul 13 $14.1325, up 22.75

Corn (P) Mar 13 $7.02, up 5.5 cents

Corn (P) May 13 $7.0475, up 5.0 cents

Corn (P) Jul 13 $7.02, up 4.75 cents

Oats (P) Mar 13 $3.6475, up 5 cents

Oats (P) May 13 $3.7225, up 5

Oats (P) Jul 13 $3.7425, up 5

Minneapolis (per bushel)

Spring Wheat Mar 13 $8.815, down 2.25 cents

Spring Wheat May 13 $8.9175, down 1.5

Spring Wheat Jul 13 $9.0025, down 0.75

Spring Wheat Sep 13 $9.00, up 1.25

The Canadian dollar sat at $1.0058 US Thursday, down marginally from $1.0118 the previous day. The U.S. greenback was worth $0.9942 Cdn.

Nearby crude oil in New York fell $1.47 to $88.66 per barrel.

About the author

Robert Arnason is a reporter with The Western Producer and Glacier Farm Media. Since 2008, he has authored nearly 5,000 articles on anything and everything related to Canadian agriculture. He didn’t grow up on a farm, but Robert spent hundreds of days on his uncle’s cattle and grain farm in Manitoba. Robert started his journalism career in Winnipeg as a freelancer, then worked as a reporter and editor at newspapers in Nipawin, Saskatchewan and Fernie, BC. Robert has a degree in civil engineering from the University of Manitoba and a diploma in LSJF – Long Suffering Jets’ Fan.