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 2014 432.40 -3.00 -0.69%
Canola Jan 2015 437.50 -2.70 -0.61%
Canola Mar 2015 439.70 -2.30 -0.52%
Canola May 2015 437.10 -2.30 -0.52%
Canola Jul 2015 434.00 -2.20 -0.50%
Milling Wheat Oct 2014 200.00 unch 0.00%
Milling Wheat Dec 2014 205.00 unch 0.00%
Milling Wheat Mar 2015 213.00 +1.00 +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 2014 1098.25 +18.75 +1.74%
Soybeans Nov 2014 1056 +9.25 +0.88%
Soybeans Jan 2015 1064.75 +9.25 +0.88%
Soybeans Mar 2015 1072.75 +8.75 +0.82%
Soybeans May 2015 1080 +8.5 +0.79%
Soybeans Jul 2015 1085.5 +8.75 +0.81%
Soybean Meal Sep 2014 382.4 +13.7 +3.72%
Soybean Meal Oct 2014 355.5 +8.3 +2.39%
Soybean Meal Dec 2014 351.1 +9 +2.63%
Soybean Oil Sep 2014 33.51 -0.47 -1.38%
Soybean Oil Oct 2014 33.59 -0.46 -1.35%
Soybean Oil Dec 2014 33.86 -0.46 -1.34%
Corn Sep 2014 362 +4 +1.12%
Corn Dec 2014 373.5 +3.75 +1.01%
Corn Mar 2015 386.75 +3.75 +0.98%
Corn May 2015 395.25 +3.75 +0.96%
Corn Jul 2015 401.5 +3.25 +0.82%
Oats Sep 2014 359.25 -10.25 -2.77%
Oats Dec 2014 333.25 +1.75 +0.53%
Oats Mar 2015 317.25 +1 +0.32%
Oats May 2015 310 +0.75 +0.24%
Oats Jul 2015 308.75 -0.25 -0.08%
Wheat Sep 2014 537.25 +9.25 +1.75%
Wheat Dec 2014 552.75 +7.25 +1.33%
Wheat Mar 2015 573 +7.25 +1.28%
Wheat May 2015 585.75 +7 +1.21%
Wheat Jul 2015 595.25 +6.75 +1.15%
Minneapolis
Spring Wheat Sep 2014 605.75 +1.25 +0.21%
Spring Wheat Dec 2014 616.25 unch 0.00%
Spring Wheat Mar 2015 628.75 +0.25 +0.04%
Spring Wheat May 2015 638 +1.25 +0.20%
Spring Wheat Jul 2015 644.75 +0.75 +0.12%
Kansas City
Hard Red Wheat Sep 2014 608 +4 +0.66%
Hard Red Wheat Dec 2014 623.25 +4 +0.65%
Hard Red Wheat Mar 2015 633.75 +3.75 +0.60%
Hard Red Wheat May 2015 639.5 +5 +0.79%
Hard Red Wheat Jul 2015 629.5 +3.75 +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.
