Canola dips based on soybean losses

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Reading Time: 4 minutes

Published: July 31, 2017

Canola, like most crops, had a slightly down day in the futures markets Monday, but stayed comfortably within the $500-$510 per tonne zone of support and resistance with which it has flirted for months.

November canola fell $1.70 per tonne to $508.60 and January fell $1.50 to $513.70.

Soybean oil rose slightly Monday, but that wasn’t enough to save canola from succumbing to the pressure from weakening soybeans and soybean meal.

Wheat contracts fell six to nine cents per bushel.

Forecasts of cooler weather in the U.S. Midwest pressured soybean complex prices, relieving worries about recent heat.

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Photo: Greg Berg

France’s wheat harvest rises 30 per cent but falls short of past average levels, Argus says

This year’s soft wheat crop in France, the European Union’s biggest producer, is expected to rise to 33.40 million metric tons, up 30 per cent from a rain-hit harvest last year, Argus Media said on Tuesday.

Wheat prices continue to weaken, with spring wheat the weakest of the three sisters Monday.

Hefty world production outside North America is alleviating concerns raised by the drought on the northern U.S. plains and Canadian Prairies. High protein wheat will be in short supply in North America, but other world sources are available.

The downward twitch on Monday was not generally seen as substantial,  but rather as a weather market event.

Rain in Australia garnered some chatter among traders.

As well, good progress with France’s wheat harvest and improving prospects in Russia further dragged down prices.

The Canadian dollar remains above 80 cents U.S., making it hard for canola to rally.

US CROP CONDITIONS

After the close, the USDA issued its weekly crop condition report.

The condition rating of spring wheat declined. The amount poor to very poor rose to 43 percent from 40 percent the week before. Fair fell to 26 percent from 27. Good to excellent fell to 31 percent from 33.

The national soybean rating improved a little, which could pressure soybeans in overnight trade.

Good to excellent climbed to 59 from 57. Fair rose one point to 28 and the poor to very poor fell to 13 percent from 14 the week before.

Almost half of the soy crop is setting pods.

The corn condition dipped slightly with good to excellent falling to 61 percent from 62. Fair was steady at 26 percent.

The poor to very poor rose one point to 13 percent.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 46 cents US$50.17 per barrel.

In the afternoon, the Canadian dollar was trading around US80.03 cents, down from 80.43 cents the previous trading day. The U.S. dollar was C$1.2495.

The Toronto Stock Exchange’s S&P/TSX composite index closed up 15.22 points, or 0.1 percent, at 15,143.87. For the month, the index lost 0.3 percent.

The Dow Jones Industrial Average rose 0.28 percent to end at 21,891.12 points and the S&P 500 lost 0.07 percent to 2,470.3. The Nasdaq Composite dropped 0.42 percent to 6,348.12.

Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 17   508.60s   -1.70   -0.33%
Canola Jan 18   513.70s   -1.50   -0.29%
Canola Mar 18   517.70s   -1.30   -0.25%
Canola May 18   519.80s   -0.70   -0.13%
Canola Jul 18   521.70s   -1.20   -0.23%

Milling Wheat Oct 17   279.00s   -4.00   -1.41%
Milling Wheat Dec 17   282.00s   -3.00   -1.05%
Milling Wheat Mar 18   286.00s   -3.00   -1.04%

Durum Wheat Oct 17   308.00s   -1.00   -0.32%
Durum Wheat Dec 17   309.00s   -1.00   -0.32%
Durum Wheat Mar 18   291.00s   unch   unch

Barley Oct 17   140.00s   unch   unch
Barley Dec 17   140.00s   unch   unch
Barley Mar 18   140.00s   unch   unch

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 Aug 17   994-4s   -6-2   -0.62%
Soybeans Sep 17   999-4s   -6-4   -0.65%
Soybeans Nov 17   1007-2s   -5-6   -0.57%
Soybeans Jan 18   1016-0s   -5-4   -0.54%
Soybeans Mar 18   1020-4s   -4-6   -0.46%

Soybean Meal Aug 17   318.6s   -2.4   -0.75%
Soybean Meal Sep 17   320.7s   -2.6   -0.80%
Soybean Meal Oct 17   322.6s   -2.7   -0.83%

Soybean Oil Aug 17   34.71s   +0.10   +0.29%
Soybean Oil Sep 17   34.81s   +0.10   +0.29%
Soybean Oil Oct 17   34.92s   +0.09   +0.26%

Corn Sep 17   370-6s   -3-4   -0.94%
Corn Dec 17   384-6s   -3-2   -0.84%
Corn Mar 18   396-2s   -3-4   -0.88%
Corn May 18   401-6s   -3-2   -0.80%

Corn Jul 18   407-0s   -3-0   -0.73%

Oats Sep 17   284-2s   -6-0   -2.07%
Oats Dec 17   286-2s   -5-4   -1.89%
Oats Mar 18   285-4s   -5-2   -1.81%
Oats May 18   284-4s   -5-2   -1.81%
Oats Jul 18   283-2s   -5-2   -1.82%

Wheat Sep 17   474-4s   -6-4   -1.35%
Wheat Dec 17   499-6s   -6-2   -1.24%
Wheat Mar 18   520-6s   -5-4   -1.05%
Wheat May 18   532-6s   -5-2   -0.98%
Wheat Jul 18   540-4s   -4-6   -0.87%

Minneapolis
Spring Wheat Sep 17   731-2s   -9-2   -1.25%
Spring Wheat Dec 17   744-2s   -6-6   -0.90%
Spring Wheat Mar 18   742-0s   -4-4   -0.60%
Spring Wheat May 18   732-4s   -3-4   -0.48%
Spring Wheat Jul 18   720-2s   -3-2   -0.45%

Kansas City
Hard Red Wheat Sep 17   474-6s   -6-2   -1.30%
Hard Red Wheat Dec 17   502-0s   -6-2   -1.23%
Hard Red Wheat Mar 18   519-6s   -6-2   -1.19%
Hard Red Wheat May 18   532-6s   -6-0   -1.11%
Hard Red Wheat Jul 18   546-4s   -5-4   -1.00%

Chicago livestock futures in US¢/pound (rounded to two decimal places)
Live Cattle (Pit) Aug 17   112.000s   -0.900   -0.80%
Live Cattle (Pit) Oct 17   111.950s   -0.475   -0.42%
Live Cattle (Pit) Dec 17   113.150s   -0.250   -0.22%

Feeder Cattle (Pit) Aug 17   146.175s   +0.125   +0.09%
Feeder Cattle (Pit) Sep 17   146.650s   -0.450   -0.31%
Feeder Cattle (Pit) Oct 17   146.225s   -0.625   -0.43%

Lean Hogs (Pit) Aug 17   80.300s   -1.100   -1.35%
Lean Hogs (Pit) Oct 17   66.025s   -0.475   -0.71%
Lean Hogs (Pit) Dec 17   60.500s   -0.550   -0.90%

About the author

Ed White

Ed White

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