Canola realigned with soybeans Thursday, edging lower after a holding steady on Wednesday.
November canola closed a few dollars above a technical support level of about $430, the low in the life of the contract.
The 14-day relative strength index for the November contract is 37.88 percent so it is not in oversold territory, i.e. 30 percent or lower.
U.S. crop futures were mostly a little higher on bargain buying.
The potential for crop price increases are limited because of expectations for a record-breaking crop in the U.S. and a close-to-average crop in Western Canada.
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Combining of winter wheat and a bit of spring crop swathing have begun in several areas across the Canadian prairies. There are reports of heavy fusarium in winter wheat.
Many parts of Western Canada could use some rain to help fill kernels. A widespread rain is not in the near term forecast, however there could be local thundershowers over the next few days.
Harvest of spring wheat in the northern U.S. weighed on Minneapolis spring wheat futures, although Chicago and Kansas City edged higher on bargain buying.
Weakness in soy oil is weighing on canola.
While the September soybean contract has been bouncing up and down in a narrow range between about $11.40 and $10.70 per bushel over the last four weeks, September soy oil has been sliding. The decline increased this week, dropping about two cents per pound or about 5.6 percent so far.
This weakness is prompted by the expectation of a huge U.S. crop and also on ideas that palm production will increase in Indonesia and Malaysia.
Palm oil prices hit five-year lows overnight.
Palm oil stocks in Malaysia at the end of July increased when the trade expected a decrease. Also, the pace of exports of Malaysian palm this month is slower than expected.
Falling crude oil prices are also a weight on vegetable oil values.
Weekly crude oil stocks in the U.S. are rising.
U.S. Energy Information Administration statistics show crude oil production averaged an estimated 8.5 million barrels per day (bpd) in July, the highest level since April 1987, Reuters reported.
In its monthly short term energy outlook, the EIA also raised its crude production for next year’s output to 9.3 million bpd from 9.27 million bpd previously. The 2015 forecast represents the highest annual average level of oil production since 1972, Reuters reported.
OPEC production in July also rose to more than 30 million bpd, a five-month high.
Next week, participants on the annual Pro Farmer Midwest Crop Tour will survey hundreds of corn and soy fields in the Midwest.
Dry areas on Australia’s east coast are set to get much-needed rains over the weekend. Queensland and New South Wales could see as much as 100 millimetres of rain over the weekend, the Australian Bureau of Meteorology said.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2014Â Â Â Â Â Â 432.40Â Â Â Â Â Â -3.00Â Â Â Â Â Â -0.69%
Canola Jan 2015Â Â Â Â Â Â 437.50Â Â Â Â Â Â -2.70Â Â Â Â Â Â -0.61%
Canola Mar 2015Â Â Â Â Â Â 439.70Â Â Â Â Â Â -2.30Â Â Â Â Â Â -0.52%
Canola May 2015Â Â Â Â Â Â 437.10Â Â Â Â Â Â -2.30Â Â Â Â Â Â -0.52%
Canola Jul 2015Â Â Â Â Â Â 434.00Â Â Â Â Â Â -2.20Â Â Â Â Â Â -0.50%
Milling Wheat Oct 2014      200.00      unch      0.00%
Milling Wheat Dec 2014      205.00      unch      0.00%
Milling Wheat Mar 2015Â Â Â Â Â Â 213.00Â Â Â Â Â Â +1.00Â Â Â Â Â Â +0.47%
Durum Wheat Oct 2014      250.00      unch      0.00%
Durum Wheat Dec 2014      256.00      unch      0.00%
Durum Wheat Mar 2015      257.00      unch      0.00%
Barley Oct 2014      136.00      unch      0.00%
Barley Dec 2014      138.00      unch      0.00%
Barley Mar 2015      139.00      unch      0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Sep 2014Â Â Â Â Â Â 1098.25Â Â Â Â Â Â +18.75Â Â Â Â Â Â +1.74%
Soybeans Nov 2014Â Â Â Â Â Â 1056Â Â Â Â Â Â +9.25Â Â Â Â Â Â +0.88%
Soybeans Jan 2015Â Â Â Â Â Â 1064.75Â Â Â Â Â Â +9.25Â Â Â Â Â Â +0.88%
Soybeans Mar 2015Â Â Â Â Â Â 1072.75Â Â Â Â Â Â +8.75Â Â Â Â Â Â +0.82%
Soybeans May 2015Â Â Â Â Â Â 1080Â Â Â Â Â Â +8.5Â Â Â Â Â Â +0.79%
Soybeans Jul 2015Â Â Â Â Â Â 1085.5Â Â Â Â Â Â +8.75Â Â Â Â Â Â +0.81%
Soybean Meal Sep 2014Â Â Â Â Â Â 382.4Â Â Â Â Â Â +13.7Â Â Â Â Â Â +3.72%
Soybean Meal Oct 2014Â Â Â Â Â Â 355.5Â Â Â Â Â Â +8.3Â Â Â Â Â Â +2.39%
Soybean Meal Dec 2014Â Â Â Â Â Â 351.1Â Â Â Â Â Â +9Â Â Â Â Â Â +2.63%
Soybean Oil Sep 2014Â Â Â Â Â Â 33.51Â Â Â Â Â Â -0.47Â Â Â Â Â Â -1.38%
Soybean Oil Oct 2014Â Â Â Â Â Â 33.59Â Â Â Â Â Â -0.46Â Â Â Â Â Â -1.35%
Soybean Oil Dec 2014Â Â Â Â Â Â 33.86Â Â Â Â Â Â -0.46Â Â Â Â Â Â -1.34%
Corn Sep 2014Â Â Â Â Â Â 362Â Â Â Â Â Â +4Â Â Â Â Â Â +1.12%
Corn Dec 2014Â Â Â Â Â Â 373.5Â Â Â Â Â Â +3.75Â Â Â Â Â Â +1.01%
Corn Mar 2015Â Â Â Â Â Â 386.75Â Â Â Â Â Â +3.75Â Â Â Â Â Â +0.98%
Corn May 2015Â Â Â Â Â Â 395.25Â Â Â Â Â Â +3.75Â Â Â Â Â Â +0.96%
Corn Jul 2015Â Â Â Â Â Â 401.5Â Â Â Â Â Â +3.25Â Â Â Â Â Â +0.82%
Oats Sep 2014Â Â Â Â Â Â 359.25Â Â Â Â Â Â -10.25Â Â Â Â Â Â -2.77%
Oats Dec 2014Â Â Â Â Â Â 333.25Â Â Â Â Â Â +1.75Â Â Â Â Â Â +0.53%
Oats Mar 2015Â Â Â Â Â Â 317.25Â Â Â Â Â Â +1Â Â Â Â Â Â +0.32%
Oats May 2015Â Â Â Â Â Â 310Â Â Â Â Â Â +0.75Â Â Â Â Â Â +0.24%
Oats Jul 2015Â Â Â Â Â Â 308.75Â Â Â Â Â Â -0.25Â Â Â Â Â Â -0.08%
Wheat Sep 2014Â Â Â Â Â Â 537.25Â Â Â Â Â Â +9.25Â Â Â Â Â Â +1.75%
Wheat Dec 2014Â Â Â Â Â Â 552.75Â Â Â Â Â Â +7.25Â Â Â Â Â Â +1.33%
Wheat Mar 2015Â Â Â Â Â Â 573Â Â Â Â Â Â +7.25Â Â Â Â Â Â +1.28%
Wheat May 2015Â Â Â Â Â Â 585.75Â Â Â Â Â Â +7Â Â Â Â Â Â +1.21%
Wheat Jul 2015Â Â Â Â Â Â 595.25Â Â Â Â Â Â +6.75Â Â Â Â Â Â +1.15%
Minneapolis
Spring Wheat Sep 2014Â Â Â Â Â Â 605.75Â Â Â Â Â Â +1.25Â Â Â Â Â Â +0.21%
Spring Wheat Dec 2014      616.25      unch      0.00%
Spring Wheat Mar 2015Â Â Â Â Â Â 628.75Â Â Â Â Â Â +0.25Â Â Â Â Â Â +0.04%
Spring Wheat May 2015Â Â Â Â Â Â 638Â Â Â Â Â Â +1.25Â Â Â Â Â Â +0.20%
Spring Wheat Jul 2015Â Â Â Â Â Â 644.75Â Â Â Â Â Â +0.75Â Â Â Â Â Â +0.12%
Kansas City
Hard Red Wheat Sep 2014Â Â Â Â Â Â 608Â Â Â Â Â Â +4Â Â Â Â Â Â +0.66%
Hard Red Wheat Dec 2014Â Â Â Â Â Â 623.25Â Â Â Â Â Â +4Â Â Â Â Â Â +0.65%
Hard Red Wheat Mar 2015Â Â Â Â Â Â 633.75Â Â Â Â Â Â +3.75Â Â Â Â Â Â +0.60%
Hard Red Wheat May 2015Â Â Â Â Â Â 639.5Â Â Â Â Â Â +5Â Â Â Â Â Â +0.79%
Hard Red Wheat Jul 2015Â Â Â Â Â Â 629.5Â Â Â Â Â Â +3.75Â Â Â Â Â Â +0.60%
Light crude oil nearby futures in New York dropped $2.01 at $95.58 US per barrel.
The Canadian dollar at noon was 91.65 cents US, up from 91.50 cents the previous trading day. The U.S. dollar at noon was $1.0911 Cdn.
In unofficial tallies —
The Toronto Stock Exchange’s S&P/TSX composite index closed up 28.45 points, or 0.19 percent, at 15,291.18.
The Dow Jones industrial average rose 61.78 points, 0.37 percent, to end at 16,713.58.
The S&P 500 gained 8.46 points, 0.43 percent, to finish at 1,955.18.
The Nasdaq Composite added 18.88 points, 0.43 percent, to close at 4,453.00.
