Canola had another dreadful day Monday, falling to $485.70 per tonne for the November futures contract.
That’s beneath a line of medium-term support at $490 per tonne, which has held since June, but leaves it well above longer-term support at $472 per tonne.
Traders blamed the decline on harvest pressure, as huge amounts of crop pour into farmers’ bins and elevators. Excellent harvest weather has combines running full-out across the Prairies.
As usual, reports from the field suggest canola yields are better than expected, especially considering the sub-optimal weather conditions this summer.
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As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
The Canadian dollar rose again Monday, which further dragged down canola.
While harvest has gone well so far, progress may be delayed later in this week. Environment Canada forecasts a likelihood rains for most of the Prairies later in the week.
Most other crops were almost flat on the day.
AUSTRALIA
The Australian Bureau of Agricultural and Resource Economics and Sciences forecast wheat production at 21.64 million tonnes, down from a March forecast of 23.98 million tonnes. The August U.S. Department of Agriculture forecast pegged Australia’s crop at 23.5 million tonnes.
This would represent a one-third decline from 2016-17, when Australia produced a record 32.64 million tonnes.
ABARES also forecast the canola crop at 2.75 million tonnes, down from a previous estimate of 3.69 million tonnes.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were up 59 cents at US$48.07 per barrel.
In the afternoon, the Canadian dollar was trading around US82.48 cents, up from 82.34 cents the previous trading day. The U.S. dollar was C$1.2124.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 54.98 points, or 0.37 percent, at 15,040.30.
The Dow Jones Industrial Average rose 1.19 percent to end at 22,057.37 points in its largest one-day gain since February.
The S&P 500 gained 1.08 percent to 2,488.11 and the Nasdaq Composite added 1.13 percent to 6,432.26.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 17 485.70s -4.00 -0.82%
Canola Jan 18 492.60s -3.70 -0.75%
Canola Mar 18 499.50s -3.30 -0.66%
Canola Jul 18 503.80s -2.50 -0.49%
Milling Wheat Oct 17 231.00s -2.00 -0.86%
Milling Wheat Dec 17 234.00s -2.00 -0.85%
Milling Wheat Mar 18 241.00s -2.00 -0.82%
Durum Wheat Oct 17 281.00s unch unch
Durum Wheat Dec 17 285.00s unch unch
Durum Wheat Mar 18 289.00s unch unch
Barley Oct 17 145.00s unch unch
Barley Dec 17 148.00s unch unch
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.
Chicago
Soybeans Sep 17 954-6s -1-6 -0.18%
Soybeans Nov 17 960-0s -2-0 -0.21%
Soybeans Jan 18 970-0s -2-0 -0.21%
Soybeans Mar 18 978-4s -2-0 -0.20%
Soybeans May 18 987-2s -1-4 -0.15%
Soybean Meal Sep 17 298.9s -2.0 -0.66%
Soybean Meal Oct 17 300.4s -2.0 -0.66%
Soybean Meal Dec 17 303.6s -1.6 -0.52%
Soybean Oil Sep 17 34.79s +0.20 +0.58%
Soybean Oil Oct 17 34.88s +0.20 +0.58%
Soybean Oil Dec 17 35.15s +0.21 +0.60%
Corn Sep 17 345-4s +1-2 +0.36%
Corn Dec 17 357-4s +0-6 +0.21%
Corn Mar 18 369-6s +0-6 +0.20%
Corn May 18 377-6s +1-0 +0.27%
Corn Jul 18 384-0s +0-6 +0.20%
Oats Sep 17 235-4s +2-2 +0.96%
Oats Dec 17 234-2s +2-2 +0.97%
Oats Mar 18 242-0s +2-0 +0.83%
Oats Jul 18 243-4s unch unch
Wheat Sep 17 412-2s -1-4 -0.36%
Wheat Dec 17 434-6s -3-0 -0.69%
Wheat Mar 18 455-2s -4-0 -0.87%
Wheat May 18 470-0s -3-4 -0.74%
Wheat Jul 18 483-4s -3-2 -0.67%
Minneapolis
Spring Wheat Sep 17 626-2s -4-0 -0.63%
Spring Wheat Dec 17 642-2s -4-4 -0.70%
Spring Wheat Mar 18 654-0s -3-0 -0.46%
Spring Wheat Jul 18 643-4s -3-0 -0.46%
Kansas City
Hard Red Wheat Sep 17 409-2s -6-2 -1.50%
Hard Red Wheat Dec 17 434-6s -6-6 -1.53%
Hard Red Wheat Mar 18 452-2s -6-6 -1.47%
Hard Red Wheat May 18 465-6s -6-2 -1.32%
Hard Red Wheat Jul 18 482-6s -6-0 -1.23%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Oct 17 107.200s -0.125 -0.12%
Live Cattle Dec 17 112.875s +0.025 +0.02%
Live Cattle Feb 18 116.550s -0.075 -0.06%
Feeder Cattle Sep 17 148.450s +0.575 +0.39%
Feeder Cattle Oct 17 149.350s +0.925 +0.62%
Feeder Cattle Nov 17 149.300s +1.075 +0.73%
Lean Hogs Oct 17 61.575s -0.575 -0.93%
Lean Hogs Dec 17 58.625s -0.275 -0.47%
Lean Hogs Feb 18 63.675s -0.075 -0.12%
