Canola ends the week down

New crop canola added to its losses Friday, ending a bad week badly.

November canola futures lost about $20 on the week, with most days other than Monday showing the same marked downtrend, closing Friday at $535.30 per tonne.

July canola went the opposite direction, rising through the week from around $600 to $618.40, pushing the inverse wider.

Underlying soybean weakness expressed itself Friday in its reaction to the U.S. Department of Agriculture planted acreage and stocks reports. Both reports had neutral to slightly bullish soybean numbers, yet soybean futures fell, dragged down by corn’s bigger fall. Corn is still the market leader and on days like Friday, when it moves, other crops follow.

Read Also

Alberta harvest wrapping up: report

Harvest operations advanced to 96 per cent complete in Alberta as of Oct. 7, with only a few late-seeded cereal and canola fields remaining, according to the latest provincial crop report.

Soybeans were relatively flat on the week, but soy oil showed the same pattern of steady declines that canola experienced.

Canola has poor prospects as long as its fundamental value as an oil product is being undermined, said Ken Ball of PI Financial.

“Bean oil has been going down relentlessly for a couple of weeks now,” said Ball.

“As long as the Canadian dollar stays down, it’ll cancel part of that out. But if the Canadian dollar ever rallies much, with the bean oil where it is, it’ll feel pressure.”

Canola prices weren’t helped by the generally decent conditions in Western Canada. Heavy rains in some areas and localized flooding hurt some crops, but most are in good condition and catching up from the lateness with which they were seeded.

There are widespread concerns about fungal diseases breaking out because of the high humidity likely for the next weeks, but those problems are just a potential now and not a certainty.

The Statistics Canada acreage report found farmers planted about 600,000 acres more canola than they earlier intended and that finding also softened prices.

Equity markets were generally higher on the week, although many had losses Friday. The big sell-offs of late last week did not continue.

The Canadian Oilseed Processors Association said members crushed 122,927 tonnes of canola in the week ending June 26, up 19.5 percent over the previous week. That represented a capacity used of about 74 percent.

Winnipeg ICE Futures Canada dollars per tonne

Canola Jul 2013    609.80    -9.70    -1.57%

Canola Nov 2013    534.80    -6.80    -1.26%

Canola Jan 2014    538.80    -7.40    -1.35%

Canola Mar 2014    540.00    -6.70    -1.23%

Canola May 2014    538.90    -5.50    -1.01%

Milling Wheat Jul 2013    294.00    unch    0.00%

Milling Wheat Oct 2013    294.00    unch    0.00%

Milling Wheat Dec 2013    294.00    unch    0.00%

Durum Wheat Jul 2013    301.90    unch    0.00%

Durum Wheat Oct 2013    294.90    unch    0.00%

Durum Wheat Dec 2013    299.40    unch    0.00%

Barley Jul 2013    244.00    unch    0.00%

Barley Oct 2013    194.00    unch    0.00%

Barley Dec 2013    199.00    unch    0.00%

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

Chicago

Soybeans Jul 2013    1564.5    +16    +1.03%

Soybeans Aug 2013    1431    -1.5    -0.10%

Soybeans Sep 2013    1303.25    -14.5    -1.10%

Soybeans Nov 2013    1252    -23.25    -1.82%

Soybeans Jan 2014    1256.75    -21.75    -1.70%

Soybeans Mar 2014    1256.5    -17.5    -1.37%

Soybean Meal Jul 2013    490.3    +10.7    +2.23%

Soybean Meal Aug 2013    434.9    -0.3    -0.07%

Soybean Meal Sep 2013    400.7    -6.2    -1.52%

Soybean Oil Jul 2013    46.42    +0.02    +0.04%

Soybean Oil Aug 2013    46.29    -0.06    -0.13%

Soybean Oil Sep 2013    45.91    -0.06    -0.13%

Corn Jul 2013    679.25    +12    +1.80%

Corn Sep 2013    547.25    -25    -4.37%

Corn Dec 2013    511    -27.5    -5.11%

Corn Mar 2014    521.75    -27.5    -5.01%

Corn May 2014    529.25    -27    -4.85%

Oats Jul 2013    401.25    +16    +4.15%

Oats Sep 2013    366.25    -12    -3.17%

Oats Dec 2013    360.5    -13.75    -3.67%

Oats Mar 2014    363.25    -14    -3.71%

Oats May 2014    365.5    -14    -3.69%

Wheat Jul 2013    648.5    -15    -2.26%

Wheat Sep 2013    657.75    -16    -2.37%

Wheat Dec 2013    671.5    -17.5    -2.54%

Wheat Mar 2014    684    -19    -2.70%

Wheat May 2014    693.25    -19    -2.67%

Minneapolis

Spring Wheat Jul 2013    785    -1.5    -0.19%

Spring Wheat Sep 2013    775    -8    -1.02%

Spring Wheat Dec 2013    783    -8.25    -1.04%

Spring Wheat Mar 2014    796.75    -8    -0.99%

Spring Wheat May 2014    802.25    -8.5    -1.05%

Kansas City

KCBT Red Wheat Jul 2013    676.25    -10.25    -1.49%

KCBT Red Wheat Sep 2013    690.5    -11.5    -1.64%

KCBT Red Wheat Dec 2013    710.25    -12.5    -1.73%

KCBT Red Wheat Mar 2014    724.5    -12.5    -1.70%

KCBT Red Wheat May 2014    733    -13    -1.74%

Light crude oil nearby futures in New York dropped 49 cents at $96.56 US per barrel.

The Canadian dollar at noon was 95.13 cents US, down from 95.42 cents the previous trading day. The U.S. dollar at noon was $1.0512 Cdn.

---

Newsletter Sign Up - Receive free Western Producer newsletters

Breaking ag news stories and commodities markets snapshots delivered daily right to your inbox!

Your Email(Required)

Your Postal Code(Required)

Consent

I consent to receiving emails from Glacier FarmMedia, its affiliates and divisions and third parties, containing agriculture news, updates and promotions. I can unsubscribe at any time

Email

This field is for validation purposes and should be left unchanged.

Δ