Canola futures posted a mixed day to close the week Friday with new crop November eking out a small gain after being down early in the morning.
Old crop July closed lower for the second day, capping a week when canola weakened even as soybeans rallied.
Over the week, July canola fell $13.20 a tonne of 2.5 percent while new crop November fell $6.50 or 1.2 percent.
VIDEO: Canada’s agricultural markets update
The moisture situation is improving across the Canadian Prairies and significant rain is expected again on Tuesday in much of southern Saskatchewan and Manitoba and up along the Alberta-Saskatchewan border.
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Alberta Crop Report: Rains in the south, dryness in the north
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The weekly canola crush was a strong 179,485 tonne, up 10.4 percent, said the Canadian Oilseed Processors Association.
Crush capacity use was almost 87 percent, topping year average of 81.6 percent.
However, the strong domestic performance was offset by slow exports in week 42 of the crop year The Canadian Grain Commission said 78,600 tonnes of canola were shipped versus the previous week’s very strong 328,800 tonnes.
Recently, canola exports have varied a lot from week to week, but over the past four weeks they have averaged about 208,400 tonnes, which is more than enough to meet the forecast of 10 million tonnes of exports if the pace carries through over the next 10 weeks to the end of the crop year.
Canadian wheat exports in week 42 were stronger at 306,800 tonnes, up from 228,200 the week before
But overall, it was a slow week for all crop exports, which totaled 535,300 tonnes, down from 805,700 the week before.
The International Grains Council’s latest monthly report this week said World 2016-17 rapeseed carryovers are seen at a 13-year low of 3.7 million tonnes, as production likely falls for a third successive season.
Soybeans continued their rally, gaining about a half percent today even as soy meal fell, but soy oil rose.
Some analysts think Argentina might make further cuts to its soybean crop estimate, which was damaged by rain at harvest.
Weighing against soybeans is the idea that rain in the Midwest and Plains could push more U.S. acres into soybeans as it becomes too late to seed corn.
But the market also continues to price in risk of a hot, dry trend late in the summer that could hit as soybeans reach their key yield setting stage.
Right now though, a lot of the U.S. cropping area has good moisture.
Over the week, July soybeans gained 0.9 percent
Chicago corn rallied almost one percent highest level in 10 months on strong export demand and short-covering ahead of a long U.S. holiday weekend, traders said.
Strong weekly export sales also supported corn.
“(U.S.) corn is still very competitive in the world market, until we get supplies out of South America. I think that’s a driving force,” Don Roose, president of U.S. Commodities, told Reuters.
The wheat market settled down after good gains on Thursday.
Today Chicago wheat was little changed but Kansas and Minneapolis wheat fell.
Rain in the U.S. this week and on the weekend could encourage disease and downgrading and that helped trigger a modest short covering rally on Wednesday and Thursday.
Wheat is generally anchored down by large world stocks and the approach of the U.S. winter wheat harvest. The combines have already started to roll in Texas.
Also the International Grains Council on Thursday lifted its forecast for production, including durum, this year by 1.5m tonnes to 153.6m tonnes.
The IGC raised it 2016-17 global wheat production forecast by five million tonnes to 722 million. That is still below last year’s crop of 736 million tonnes.
Light crude oil nearby futures in New York were down 15 cents to US$49.33 per barrel.
The Canadian dollar at noon was US76.91 cents, down from 77.04 cents the previous trading day. The U.S. dollar at noon was C$1.3003.
Janet Yellen, chair of the U.S. Federal Reserve said today that an interest rate increase would likely be appropriate in the “coming months.”
The Fed next meets on June 14-15.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 56.03 points, or 0.4 percent, at 14,105.23.
The Dow Jones industrial average climbed 0.25 percent to end at 17,873.22 points and the S&P 500 gained 0.43 percent to 2,099.06.
The Nasdaq Composite rose 0.65 percent to 4,933.51.
For the week, the Toronto Stock Exchange composite rose 1.3 percent, S&P 500 rose 2.3 percent and the Dow climbed 2.1 percent, the best weekly performance for both since March.
The Nasdaq jumped 3.4 percent, the most since February.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2016 512.80 -2.80 -0.54%
Canola Nov 2016 518.30 +3.10 +0.60%
Canola Jan 2017 521.70 +3.60 +0.69%
Canola Mar 2017 522.80 +3.70 +0.71%
Canola May 2017 523.80 +3.60 +0.69%
Milling Wheat Jul 2016 242.00 +4.00 +1.68%
Milling Wheat Oct 2016 237.00 +4.00 +1.72%
Milling Wheat Dec 2016 242.00 +4.00 +1.68%
Durum Wheat Jul 2016 305.00 unch 0.00%
Durum Wheat Oct 2016 297.00 unch 0.00%
Durum Wheat Dec 2016 299.00 unch 0.00%
Barley Jul 2016 171.00 unch 0.00%
Barley Oct 2016 171.00 unch 0.00%
Barley Dec 2016 171.00 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 2016 1086.5 +6.75 +0.63%
Soybeans Aug 2016 1083 +5.75 +0.53%
Soybeans Sep 2016 1067.5 +5.75 +0.54%
Soybeans Nov 2016 1056.25 +5.75 +0.55%
Soybeans Jan 2017 1054 +7 +0.67%
Soybeans Mar 2017 1030.5 +4.75 +0.46%
Soybean Meal Jul 2016 402.6 -7 -1.71%
Soybean Meal Aug 2016 388.7 -4.4 -1.12%
Soybean Meal Sep 2016 381.1 -0.3 -0.08%
Soybean Oil Jul 2016 31.48 +0.44 +1.42%
Soybean Oil Aug 2016 31.61 +0.45 +1.44%
Soybean Oil Sep 2016 31.74 +0.44 +1.41%
Corn Jul 2016 412.75 +4.5 +1.10%
Corn Sep 2016 414.25 +3.75 +0.91%
Corn Dec 2016 413.5 +3.75 +0.92%
Corn Mar 2017 420 +3.5 +0.84%
Corn May 2017 423.75 +4 +0.95%
Oats Jul 2016 193 +1.75 +0.92%
Oats Sep 2016 205.25 +1.75 +0.86%
Oats Dec 2016 215.5 -1.25 -0.58%
Oats Mar 2017 224.75 -1.25 -0.55%
Oats May 2017 224.75 -1.25 -0.55%
Wheat Jul 2016 481.5 +0.25 +0.05%
Wheat Sep 2016 491.75 unch 0.00%
Wheat Dec 2016 508.25 -0.25 -0.05%
Wheat Mar 2017 523.5 -0.5 -0.10%
Wheat May 2017 533.75 unch 0.00%
Minneapolis
Spring Wheat Jul 2016 528 -6.5 -1.22%
Spring Wheat Sep 2016 535.5 -6.75 -1.24%
Spring Wheat Dec 2016 549.25 -6 -1.08%
Spring Wheat Mar 2017 562 -4.25 -0.75%
Spring Wheat May 2017 569.25 -3.75 -0.65%
Kansas City
Hard Red Wheat Jul 2016 459.75 -2.5 -0.54%
Hard Red Wheat Sep 2016 475.75 -2.75 -0.57%
Hard Red Wheat Dec 2016 498.5 -3 -0.60%
Hard Red Wheat Mar 2017 514.75 -3 -0.58%
Hard Red Wheat May 2017 524.75 -3 -0.57%
