Canola edges higher while U.S. markets fall

By Karl Plume of Reuters

And Western Producer staff

Canola futures bucked downward trends in grain futures Monday, posting modest gains in November and July.

Concern about crop damage from excess rain, hail and other weather stress provided support for canola prices, as did an uptick in palm oil values sparked by predictions that Malaysian palm oil June stocks would fall for the first time in four months.

Analysts are still trying to get a firm idea of how much crop will be lost because of the bad weather in Western Canada. The situation will likely have little impact on crop such as wheat because there is so much grown in the world that a few million acres in Canada makes little difference, but in flax, where Canada has a major percentage of world trade, it could influence prices.

Read Also

U.S. livestock: Cattle, hogs end week on high note

Cattle contracts and nearby hog futures ended the week on a high note after a week rife with losses. Most-traded…

While a lot of the focus is on the excess moisture in the eastern Prairies, over in the northwest of Alberta, there is an urgent need for rain.

Gains in canola futures on Monday were limited by a weak U.S. crop market, which was pressured lower by the belief that crop weather is good enough to promote strong yields.

U.S. corn futures tumbled more than two percent on Monday to the lowest point in almost four years as largely ideal crop development weather around the Midwest reinforced expectations for a record-large harvest this autumn.

Soybeans slid to five-month lows on good crop weather, with losses in old-crop contracts outpacing those in new-crop months as traders unwound bull spreads.

Chicago Board of Trade wheat slumped more than three percent to the lowest since 2010, pressured by adequate global supplies and an accelerating harvest.

Fund long liquidations dragged all corn contracts to fresh contract lows as trading resumed after the long U.S. Independence Day holiday weekend.

“Corn is lower as weather conditions continue to be superb over the vast preponderance of the growing area,” said Sterling Smith, analyst at Citigroup.

Plentiful soil moisture and warm weather throughout much of the Midwest posed little threat to the developing corn and soybean crops. Corn is entering its critical pollination stage of development this month.

“We will probably be looking at weather that will be ideal for pollination,” Smith said.

Weekly crop condition ratings were expected to hold steady with the U.S. corn crop in the best shape in 15 years and soybeans seen at their best in 20 years, analysts said on Monday.

News that Chinese importers bought 347,000 tonnes of U.S. soybeans for 2014-15 marketing year delivery limited losses in new-crop contracts.

Wheat prices slumped despite worries about new-crop quality following adverse weather this spring. Global stocks are ample and most major producing countries are currently harvesting large crops.

Germany’s DBV farmers’ association estimated on Monday the 2014 winter wheat crop would reach almost 25 million tonnes, versus 24.6 million in 2013.

September soft red winter wheat futures fell to a contract low of $5.56 a bushel and closed 22-3/4 cents lower at $5.56-3/4. The day’s 3.9 percent drop was the steepest since March 2013.

Commodity funds sold an estimated net 11,000 corn contracts, 3,000 soybean contracts and 9,000 wheat contracts

Winnipeg ICE Futures Canada dollars per tonne

Canola Jul 2014 478.50 +2.00 +0.42%

Canola Nov 2014 459.40 +2.00 +0.44%

Canola Jan 2015 460.90 +0.10 +0.02%

Canola Mar 2015 460.50 -1.00 -0.22%

Canola May 2015 457.30 -2.90 -0.63%

Milling Wheat Jul 2014 189.00 -4.00 -2.07%

Milling Wheat Oct 2014 189.00 -4.00 -2.07%

Milling Wheat Dec 2014 194.00 -3.00 -1.52%

Durum Wheat Jul 2014 239.00 unch 0.00%

Durum Wheat Oct 2014 230.00 unch 0.00%

Durum Wheat Dec 2014 232.00 unch 0.00%

Barley Jul 2014 125.00 unch 0.00%

Barley Oct 2014 132.50 unch 0.00%

Barley Dec 2014 134.50 unch 0.00%

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

Chicago

Soybeans Jul 2014 1363 -24.75 -1.78%

Soybeans Aug 2014 1273.25 -26.5 -2.04%

Soybeans Sep 2014 1150.25 -16.5 -1.41%

Soybeans Nov 2014 1125.5 -8 -0.71%

Soybeans Jan 2015 1134.5 -7.5 -0.66%

Soybeans Mar 2015 1143.25 -6.75 -0.59%

Soybean Meal Jul 2014 443.7 -3.3 -0.74%

Soybean Meal Aug 2014 408.7 -9 -2.15%

Soybean Meal Sep 2014 379.1 -5.5 -1.43%

Soybean Oil Jul 2014 38.36 -0.2 -0.52%

Soybean Oil Aug 2014 38.43 -0.24 -0.62%

Soybean Oil Sep 2014 38.5 -0.22 -0.57%

Corn Jul 2014 409.25 -7.75 -1.86%

Corn Sep 2014 400.5 -9 -2.20%

Corn Dec 2014 406.25 -9 -2.17%

Corn Mar 2015 417.75 -9 -2.11%

Corn May 2015 425.5 -8.75 -2.01%

Oats Jul 2014 381 -5.5 -1.42%

Oats Sep 2014 346 -5.25 -1.49%

Oats Dec 2014 338.75 -7 -2.02%

Oats Mar 2015 329 -5 -1.50%

Oats May 2015 320.75 -1.75 -0.54%

Wheat Jul 2014 545 -23 -4.05%

Wheat Sep 2014 556.75 -22.75 -3.93%

Wheat Dec 2014 580.5 -23.25 -3.85%

Wheat Mar 2015 603.25 -24.25 -3.86%

Wheat May 2015 618.5 -23.75 -3.70%

Minneapolis

Spring Wheat Jul 2014 657 -3.75 -0.57%

Spring Wheat Sep 2014 661.75 -10.75 -1.60%

Spring Wheat Dec 2014 671 -11.25 -1.65%

Spring Wheat Mar 2015 683 -8 -1.16%

Spring Wheat May 2015 691 -8.25 -1.18%

Kansas City

KC HRW Wheat Jul 2014 678.5 -18.5 -2.65%

KC HRW Wheat Sep 2014 669.75 -17.5 -2.55%

KC HRW Wheat Dec 2014 680 -17 -2.44%

KC HRW Wheat Mar 2015 686.75 -16.75 -2.38%

KC HRW Wheat May 2015 689.25 -17 -2.41%

Light crude oil nearby futures in New York dropped 53 cents at $103.53 US per barrel.

The Canadian dollar at noon was 93.79 cents US, down from 93.99 cents the previous trading day. The U.S. dollar at noon was $1.0662 Cdn.

In late session trade, the TSX composite was trading down 62.30 points or 0.41 percent at 15,152.67. Ottawa’s plan to increase competition in the communications industry weighed on telecom shares.

The Dow was trading down 55.57 points or 0.33 percent at 17,012.69, down from its record high close on Thursday, when it pushed passed 17,000 for the first time.