The wheat rally ran out of steam Friday, causing wheat futures to fall the limit, taking down most crop futures, including canola.
Thursday’s limit up gain in wheat was seen as overdone and traders moved to take profits.
Russian officials modified their decision to stop grain exports from mid August to the end of the calendar year, saying they will review the ban once harvest is complete and there is a better understanding of how much grain is available.
Canola started out higher, but pulled back on profit taking and thoughts that the price was overvalued.
Prairie weather has improved in recent weeks, helping canola to make good growth. Swathing of early seeded crop has begun in some areas.
Grain companies increased hedging to prepare for expected stronger deliveries from farmers.
Today’s dip in canola was limited by the weaker Canadian dollar.
Soybeans rose a little. Midwest weather continues to be good for the crop, but the southern Delta region is dry.
In Winnipeg, November canola fell $1.20 per tonne to $468.30 on 8,554 trades.
The January contract fell $1.60 to $471 on 1,116 trades.
For the week, the November contract rose $8.70 per tonne.
The previous day’s best basis widened to $18 per tonne under the November contract in the par region, according to the Winnipeg ICE Futures daily report.
The 14-day Relative Strength Index for November was 65 according to BarChart.com. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
The Canadian dollar at noon was 97.34 cents US, down from 98.44 the previous trading day. The U.S. dollar at noon was $1.0273. The Canadian economy shed 9,300 jobs in July, the first month that it failed to generate jobs. That raised speculation that the Bank of Canada will be less willing to raise interest rates.
Winnipeg October barley was steady and untraded at $160 and December stayed at $160.
Chicago August soybeans rose four cents to $10.59 US per bushel. September rose 4.25 cents to $10.39. New-crop November rose 4.50 cents to $10.335.
September oats fell 2.5 cents to $2.795 per bu. December oats fell 2.5 cents to $2.92 per bu.
In New York, crude oil for September delivery fell $1.31 to $80.70 US per barrel.
The Canadian Oilseed Processors Association reported members crushed 66,768 tonnes in the four days from the start of the crop year to Aug. 4. In the first week of the crop year last year (five days) the crush was 51,787 tonnes.
Private forecaster Informa raised its estimate of U.S. soybean production to 3.389 billion bushels, up three million from its July forecast.
USDA’s forecast is for 2.345 billion.
Informa’s estimate of corn production is 13.448 billion bu., up from 13.241 billion in July. USDA’s estimate is 13.245 billion.
Its all-wheat estimate is to 2.242 billion bu., up from 2.217 billion last month. USDA’s estimate is 2.216 billion.
USDA will update its numbers on Aug. 12.
