Canola posted modest gains on Friday in a quiet trading day.
November closed at $560.90 per tonne, up 60 cents on the day but down $14.50 on the week.
Canola weakened over the week as the loonie rose and the heat wave retreated. Canola crops in Saskatchewan and Alberta look good generally.
Export demand popped up on Friday, supporting canola prices.
The heat wave that gripped most of the central and eastern part of the continent has likely shaved yield potential in the United States. With moderating temperatures expected next week, the stress on plants should lessen but today the Chicago market priced in some damage to corn, lifting the December corn contract by 12.5 cents.
All eyes will be on the USDA weekly crop condition report on Monday after the market closes.
Canadian Oilseed Processors Association reported weekly canola crushings at 120,754 tonnes, up 8.2 percent from a week earlier.
Winnipeg (per tonne)
Canola Nov 11 $560.90, up $0.60
Canola Jan 12 $569.00, up $0.60
Canola Mar 12 $576.40, up $0.80
Canola May 12 $581.20, up $0.10
The previous day’s best basis was one cent under the November contract according to ICE Futures Canada in Winnipeg.
The July contract’s 14-day Relative Strength Index was 41. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Oct 11 $205, unchanged
Chicago (per bushel)
Soybeans Aug 11 $13.8025, unchanged
Soybeans Sep 11 $13.81, down 0.25 cents
Soybeans Nov 11 $13.8825, up 0.25
Corn Sep 11 $6.90, up 10.75
Corn Dec 11 $6.855, up 12.5
Oats Sep 11 $3.53, up 1.5
Oats Dec 11 $3.65, up 2.0
Minneapolis (per bushel)
Spring Wheat Sep 11 $8.385, up 4.75 cents
Spring Wheat Dec 11 $8.4175, up 6.0
Spring Wheat Mar 12 $8.5175, up 8.0
Light crude oil nearby futures in New York rose 74 cents to $99.87 US per barrel.
The Canadian dollar at noon was $1.0524 US, down from $1.0581 the previous trading day. The U.S. dollar at noon was 95.02 cents Cdn.
Statistics Canada said the annual inflation rate was 3.1 percent in June, sliding from 3.7 per cent in May, due to lower prices for passenger vehicles and hotel and motel rooms. Markets had expected it to be 3.6 percent. Core inflation rate declined to 1.3 percent in June, from 1.8 percent in May, indicating less momentum for a Bank of Canada interest rate increase in September.
The Toronto Stock Exchange composite index rose 60.33 points, or 0.45 percent, to close at 13,494.63.
The Standard & Poor’s 500 Index rose 1.22 points, or 0.09 percent, to close at 1,345.02.
S&P 500 rose 2.2 percent and the TSX composite rose 1.5 percent for the week, lifted by strong earnings and a new bailout plan for Greece to contain Europe’s debt crisis. Traders were also more optimistic that U.S. politicians are on track to agree on a way to raise the U.S. debt ceiling.
The Dow rose 1.6 percent on the week and the Nasdaq advanced 2.5 percent.
