Canola dragged down by euro zone worries

Continuing worries about the euro zone debt crisis Thursday caused commodities in general to fall, including oilseeds such as canola.

The uncertainty surrounding Europe caused an influx into the U.S. dollar and out of commodities.

Weather forecasts keep changing for Midwest rainfall amounts providing slight support or pressure as they fluctuate but generally there is background worry that the region could face a dry June.

Recent rain in Russia and Australia pressured wheat.

The Canadian prairies might see occasional light showers over the next few days but generally warmer weather. The next widespread rain event is expected June 5-6.

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July canola closed at $612.80 down $2.70.

November closed at $567.30, down $1.20.

For the month canola dropped 5.7 percent. That was better than U.S. crop prices, which also had to contend with a rising U.S. dollar.

July Soybeans fell 10.7 percent and corn fell 12.3 percent.

Chicago wheat was down 0.4 percent on the month.

• The European Commission’s top economic official, Olli Rehn, warned that the single currency area could fall apart without stronger tools to fight the crisis and tough fiscal discipline.

The European Central Bank is calling for a joint guarantee for bank deposits across the euro zone and for EU-wide banking supervision and resolution system. Action is needed to restore confidence in banks and prevent bank runs where depositors take their money out and store it elsewhere.

Germany, the European country with the largest and strongest economy, is leery of using more of its taxpayers’ money to support other countries.

• U.S. job numbers showed the American economy is still struggling. Private payrolls processor ADP reported today that private U.S. employers created 133,000 jobs in May, fewer than the expected 148,000 while new claims for unemployment benefits rose by 10,000 for the fourth straight weekly increase.

Winnipeg (per tonne)

Canola Jul 12 $612.80, down $2.70 -0.44%

Canola Nov 12 $567.30, down $1.20 -0.21%

Canola Jan 13 $571.50, down $1.60 -0.28%

Canola Mar 13 $574.30, down $2.40 -0.42%

The best basis in the par region the previous day was $14 over the July contract, said ICE futures Canada.

The 14-day relative strength index fell to 50 percent.

Western Barley Jul 12 $237.00, unchanged

Western Barley Oct 12 $210.00, unchanged

Milling Wheat Oct 12 $257.70, unchanged

Milling Wheat Dec 12 $265.00, unchanged

Milling Wheat Mar 13 $274.00, unchanged

Durum Wheat Oct 12 $275.60, unchanged

Durum Wheat Dec 12 $280.10, unchanged

Durum Wheat Mar 13 $286.70, unchanged

Barley Oct 12 $180.00, unchanged

Barley Dec 12 $183.50, unchanged

Barley Mar 13 $186.50, unchanged

Chicago (per bushel)

Soybeans (P) Jul 12 $13.40, down 33.25 cents -2.42%

Soybeans (P) Aug 12 $13.2275, down 31.75 -2.34%

Soybeans (P) Sep 12 $12.9375, down 27.25 -2.06%

Soybeans (P) Nov 12 $12.7025, down 22.75 -1.76%

Corn (P) Jul 12 $5.5525, down 4.25 -0.76%

Corn (P) Sep 12 $5.255, down 1.25 $-0.24%

Corn (P) Dec 12 $5.22, up 1.5 +0.29%

Oats (P) Jul 12 $2.8075, up 10.0 +3.69%

Oats (P) Sep 12 $2.8075, up 6.75 +2.46%

Oats (P) Dec 12 $2.81, down 1.5 -0.53%

Minneapolis (per bushel)

Spring Wheat Jul 12 $7.5275, down 11.25 cents $-1.47%

Spring Wheat Sep 12 $7.53, down 9.75 -1.28%

Spring Wheat Dec 12 $7.6075, down 8.25 $-1.07%

Spring Wheat Mar 13 $7.69, down 6.75 -0.87%

Nearby light crude in New York fell $1.29 to $86.53 per barrel.

The Bank of Canada noon hour rate for the Canadian dollar is 96.63 cents US, down from 97.22 cents the day before.

The U.S. dollar was trading at $1.0349 Cdn.

Toronto Stock Exchange S&P/TSX composite index closed up 78.58 points, or 0.69 percent, at 11,511.80.

The Dow Jones industrial average was down 26.41 points, or 0.21 percent, at 12,393.45. The Standard & Poor’s 500 Index was down 3.00 points, or 0.23 percent, at 1,310.32.

The Nasdaq Composite Index fell 10.02 points, or 0.35 percent, at 2,827.34.

For the month, the Dow fell 6.2 percent, the S&P 500 lost 6.3 percent and the Nasdaq fell 7.2 percent.