Canola falls back below $500, but posts $1.20 gain on week despite strong yields

Profit taking pressured oilseeds lower Friday after the run up Thursday triggered by the bullish soybean numbers in the USDA report.

Canola also continued under pressure from the advancing harvest and reports of strong yields.

A mostly dry weekend is expected across the Prairies with the warm sun continuing Monday and Tuesday but rain is forecast for Wednesday.

The U.S. Midwest is expecting cooler weather for the next few days with some showers, but the relief is not expected to improve soybean yields, only reduce the deterioration.

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Thursday’s USDA report was bearish for corn and wheat with the department increasing its forecast for U.S. average corn yield, production and U.S. year end stocks and its outlook for world wheat production and ending stocks.

November canola today closed at499.40, down $4.60.

For the week, the November contract managed a gain of $1.20 per tonne, an impressive feat given the outlook for a record canola crop.

The gains Thursday sparked increased farmer deliveries, but steady commercial demand limited the downward pressure.

Canola is attractively priced compared to high flying soybeans and that is stimulating demand.

Canada’s canola crushing sector is also pumping up after operating well under capacity in August.

The Canadian Oilseed Processors Association said members crushed 114,948 tonnes of canola in the week ending Sept. 11, up almost 29 percent from the week before, representing a capacity use of about 67 percent.

So far this crop year, the crush totals 514,715 tonnes, well behind the pace last year when almost 716,000 tonnes had been crushed.

ICE Futures Canada, dollars per tonne

Canola Nov 2013 499.40 -4.60 -0.91%

Canola Jan 2014 507.40 -4.00 -0.78%

Canola Mar 2014 514.20 -3.60 -0.70%

Canola May 2014 520.00 -2.60 -0.50%

Canola Jul 2014 524.60 -1.60 -0.30%

Milling Wheat Oct 2013 235.00 -3.00 -1.26%

Milling Wheat Dec 2013 240.00 -2.00 -0.83%

Milling Wheat Mar 2014 245.00 -3.00 -1.21%

Durum Wheat Oct 2013 259.00 unch 0.00%

Durum Wheat Dec 2013 267.00 unch 0.00%

Durum Wheat Mar 2014 273.00 unch 0.00%

Barley Oct 2013 164.60 -14.40 -8.04%

Barley Dec 2013 169.60 -14.40 -7.83%

Barley Mar 2014 169.60 -14.40 -7.83%

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

Chicago

Soybeans Nov 2013 1381.5 -14.5 -1.04%

Soybeans Jan 2014 1379.75 -13.75 -0.99%

Soybeans Mar 2014 1347.25 -18 -1.32%

Soybeans May 2014 1315 -16.75 -1.26%

Soybeans Jul 2014 1307 -15.5 -1.17%

Soybeans Aug 2014 1279 -19 -1.46%

Soybean Meal Oct 2013 444.6 -4.6 -1.02%

Soybean Meal Dec 2013 442.8 -4.4 -0.98%

Soybean Meal Jan 2014 440.2 -3.5 -0.79%

Soybean Oil Oct 2013 42.34 -0.44 -1.03%

Soybean Oil Dec 2013 42.56 -0.47 -1.09%

Soybean Oil Jan 2014 42.77 -0.45 -1.04%

Corn Dec 2013 459 -7.25 -1.55%

Corn Mar 2014 471.5 -7 -1.46%

Corn May 2014 479.5 -7.25 -1.49%

Corn Jul 2014 486.25 -7.5 -1.52%

Corn Sep 2014 490.75 -7.5 -1.51%

Oats Dec 2013 312.25 -6 -1.89%

Oats Mar 2014 315.25 -6 -1.87%

Oats May 2014 317 -7.25 -2.24%

Oats Jul 2014 310.25 -5 -1.59%

Oats Sep 2014 320.75 +10.5 +3.38%

Wheat Dec 2013 641.5 -11.5 -1.76%

Wheat Mar 2014 652.25 -12 -1.81%

Wheat May 2014 657.5 -13.25 -1.98%

Wheat Jul 2014 656.5 -11.25 -1.68%

Wheat Sep 2014 662.75 -10.75 -1.60%

Minneapolis

Spring Wheat Dec 2013 705.75 -9 -1.26%

Spring Wheat Mar 2014 718 -7 -0.97%

Spring Wheat May 2014 726.25 -6.5 -0.89%

Spring Wheat Jul 2014 733.25 -7.25 -0.98%

Spring Wheat Sep 2014 737.25 -7.25 -0.97%

Kansas City

KCBT Red Wheat Dec 2013 692 -9.75 -1.39%

KCBT Red Wheat Mar 2014 698.75 -9.25 -1.31%

KCBT Red Wheat May 2014 701.75 -10 -1.40%

KCBT Red Wheat Jul 2014 691.25 -11.25 -1.60%

KCBT Red Wheat Sep 2014 702.25 -11.75 -1.65%

Light crude oil nearby futures in New York dropped 39 cents at $108.21 US per barrel.

The Bank of Canada noon rate for the loonie was 96.70 cents US, down from 96.90 cents the previous trading day. The U.S. dollar at noon was $1.0341 Cdn.

The Thomson Reuters/University of Michigan’s index of American consumer sentiment fell 5.3 points to 76.8 in early September, the lowest since April. Economists pointed to worries over high interest rates and a possible U.S. military strike on Syria, Reuters reported.

U.S. retail sales rose 0.2 percent last month but that we a little less than what analysts expected.

Market participants were nervous ahead of next week’s meeting of the U.S. Federal Reserve when the bank will decide whether to taper its stimulus program.

In early unofficial tallies —

The Toronto Stock Exchange’s S&P/TSX composite index rose 22.35 points, or 0.18 percent, at 12,723.40.

The Dow Jones industrial average rose 75.26 points, or 0.49 percent, closing at 15,375.90.

The Standard & Poor’s 500 Index .SPX was up 4.56 points, or 0.27 percent, at 1,687.98.

The Nasdaq Composite Index was up 6.22 points, or 0.17 percent, at 3,722.18.

For the week, the TSX declined 0.76 percent, the Dow rose three percent, the S&P rose two percent and the Nasdaq rose 1.7 percent.

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