Canola ends week up slightly, posts $4 weekly gain

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Published: August 31, 2012

Canola closed a little higher on Friday despite a rising loonie.

November canola closed at $637.60, up $1.90 or 0.3 percent.

From the close last Friday the contract gained $4.

Canola remains supported by thoughts that the harvest will be smaller than the current Statistics Canada forecast.

But warm dry weather this week has put harvest in high gear and as farmers start to deliver canola to the elevator it will lead to more commercial hedging pressure.

A large export program to China is expected in the fall.

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U.S. grains: Soybeans rise on China demand hopes; corn and wheat rebound

Chicago Board of Trade soybean, corn and wheat futures rose on Monday on signs of progress towards the end of a record-long U.S. government shutdown, along with expectations of a revival of U.S. soybean exports to China, analysts said.

U.S. crop futures were mostly down slightly on month-end profit taking after soybeans touched a new record high on Thursday.

• Wheat fell after Russia announced it would not restrict wheat exports.

• The chairperson of the U.S Federal Reserve again left the market wondering whether it will stimulate the economy.

Ben Bernanke’s comments in a speech today said the stagnation in the U.S. labour market was a “grave concern,” and that the Fed would act if needed.

But he stopped short of providing a clear signal of imminent action.

Economists are still divided over whether the central bank would launch a fresh round of bond purchases at its meeting in September.

• The Canadian Oilseed Processors Association said members crushed 94,430 tonnes of canola in the week ending Aug. 29, down almost three percent from the week before. The represents a crush capacity use of only 57 percent.

• Markets will be closed Monday for Labour Day.

 

Winnipeg (per tonne)

Canola Nov 12  $637.60, up $1.90  +0.30%

Canola Jan 13  $641.20, up $2.00  +0.31%

Canola Mar 13  $640.60, up $1.10  +0.17%

Canola May 13  $628.30, up $0.30  +0.05%

 

Milling Wheat Oct 12  $298.60, down $5.40  -1.78%

Milling Wheat Dec 12  $306.10, down $5.40  -1.73%

Milling Wheat Mar 13  $315.60, down $5.40  -1.68%

 

Durum Wheat Oct 12  $300.60, unchanged

Durum Wheat Dec 12  $305.10, unchanged

Durum Wheat Mar 13  $311.70, unchanged

 

Barley Oct 12  $264.50, unchanged

Barley Dec 12  $269.50, unchanged

Barley Mar 13  $272.50, unchanged

 

Chicago (per bushel)

Soybeans (P) Sep 12  $17.645, down 5.75 cents -0.32%

Soybeans (P) Nov 12  $17.565, down 7.0  -0.40%

Soybeans (P) Jan 13  $17.51, down 6.5  -0.37%

Soybeans (P) Mar 13  $16.8425, up 4.0  +0.24%

 

Corn (P) Sep 12  $8.0275, down 8.75 -1.08%

Corn (P) Dec 12   7.9975, down 8.75 -1.08%

Corn (P) Mar 13  $8.02, down 6.75  -0.83%

 

Oats (P) Sep 12  $3.885, up 1.0  +0.26%

Oats (P) Dec 12  $3.975, up 2.25  +0.57%

Oats (P) Mar 13  $3.97, up 2.0  +0.51%

 

Minneapolis (per bushel)

Spring Wheat Sep 12  $9.3175, down 8.25 cents -0.88%

Spring Wheat Dec 12  $9.4825, down 6.75  -0.71%

Spring Wheat Mar 13  $9.5675, down 7.0  -0.73%

Spring Wheat May 13  $9.6325, down 5.0  -0.52%

 

Nearby crude oil in New York closed up $1.85 at $96.47 per barrel.

The Bank of Canada noon rate for the loonie is $1.0139 US, up from $1.00075 the day before.

The U.S. buck is 98.63 cents Cdn.

In early tallies

Toronto Stock Exchange S&P/TSX composite index closed up 62.61 points, or 0.53 percent, at 11,949.26.

The Dow Jones industrial average was up 104.88 points, or 0.81 percent, at 13,105.59.

The Standard & Poor’s 500 Index was up 8.53 points, or 0.61 percent, at 1,408.01.

The Nasdaq Composite Index was up 20.29 points, or 0.67 percent, at 3,069.00.

For the week, the TSX as down 1.1 percent, the Dow was down 0.5 percent, the S&P 500 was down 0.3 percent and the Nasdaq fell 0.1 percent.

About the author

D'Arce McMillan

Markets editor, Saskatoon newsroom

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