Canola futures fell on Thursday, with deferred months falling the most.
U.S. markets were closed for Thanksgiving.
January canola closed at $499.80 per tonne, down $6, below the psychologically important $500 per tonne mark and the contract is showing a lot of technical weakness.
Volume was light with traders waiting for the resumption of trade in Chicago on Friday to provide direction.
Grain and oilseed prices have been falling because of worries that the debt crisis in the U.S. and Europe will cause the world economy to slow.
Lower grain prices should spur demand, but the attractiveness of the prices is being eroded by the rising U.S. dollar.
Markets were spooked by the high interest rate that Germany was forced to offer on Wednesday to attract interest in a regular bond issue.
• The Canadian Wheat Board’s November Pool Return Outlook said wheat values have declined from last month’s PRO between $1 and $14 per tonne, depending on class, grade and protein level. Very high protein grain held its price well, but regular protein fell significantly. No. 1 CWRS 11.5 percent protein fell to $262 per tonne at port from $276 last month.
Durum fell by $1 to $25 per tonne. No. 1 and 2 saw the largest drops.
Malting barley values fell by $4 per tonne, while Pool A feed barley is down by $3 per tonne. The first PRO was issued for Pool B feed barley, at $222 per tonne.
• Reuters reported today that Cargill may run a pool for Prairie farmers’ spring wheat in 2012 and will also be ready to offer farmers forward price contracts for their grains in an open market. Len Penner, president of Cargill Canada told Reuters the company is waiting to hear whether the Canadian Wheat Board will continue to run a pooling system after its marketing monopoly ends.
• The International Grains Council today shaved its production outlook for global wheat production to 683 million tonnes and raised its wheat consumption number to 679 resulting in a slight cut to year-end stocks. They fell to 200 million tonnes from 202 in the October report. Ending stocks for 2010-11 were 196 million.
It cut its global corn production outlook to 853 million tonnes from 855 million last month. However it also cut is consumption forecast to 861 million from 863 million last month. The net result was that ending stocks for 2011-12 were steady at 123 million. Last year’s stocks were 131 million.
IGC said more wheat is being substituted into livestock feed rations.
Winnipeg (per tonne)
Canola Jan 12 $499.80, down $6.00 (-1.19%)
Canola Mar 12 $500.50, down $8.80 (-1.73%)
Canola May 12 $500.50, down $11.80 (-2.30%)
Canola Jul 12 $503.70, down $13.10 (-2.53%)
The previous day’s best basis was $6 under the January contract.
Western Barley Dec 11 $217.00, unchanged
American grain markets were closed.
Light crude oil nearby futures in New York rose about 88 cents to $97.05 US per barrel.
The Canadian dollar at noon was 95.52 cents US, up from 95.42 the previous trading day. The U.S. dollar at noon was $1.0469 Cdn.
The Toronto Stock Exchange composite unofficially finished down 86.39 points, or 0.75 percent, at 11,485.32, its lowest close since Oct. 5.
