A bad month for crop futures ended with most prices staying near multi-month or multi-year lows.
Friday marked the end of Canada’s crop year.
Canola finished Friday up but was sharply down over the month.
November canola clawed back above $500 to close at $502 per tonne, up $3.30.
Over the month, November fell 6.4 percent.
The selloff in the later half of July, sparked by improving weather in the U.S. Midwest and the Canadian Prairies, sucked the wind out of the sails of most grains and oilseed prices.
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Canola’s positive movement Friday was likely due to the loonie weakening, Anderson said, although rumours of new Chinese canola buying offered support.
Soybeans fell about one percent Friday on profit taking and talk that China had cancelled a shipment of the oilseed.
The weakness in most crop futures in July has created an ugly bearish look to many charts.
Wheat futures in July suffered their greatest one-month fall in four years,
Over the month, Chicago soft wheat fell 19 percent, Kansas hard red winter fell 17.2 percent and Minneapolis hard red spring fell 16 percent.
Over the month corn fell about 10 percent. That follows corn hitting a one-year peak in early July.
Soybeans fell 7.3 percent in July.
Worries about flagging Chinese economic strength, the plunging China stock market, mixed economic signals in the U.S. and more evidence that Canada is in recession has undermined hopes that the post-2008 recovery will continue.
That means weaker demand for commodities in general, which will weigh down prices.
“I can’t get excited about commodities,” Anderson said.
“There are deep, deep problems.”
Technical support for November canola probably lies at about $480, so there’s room to fall if anything further challenges the world economy, Anderson said.
The Canadian Oilseed Processors Association said members crushed 152,933 tonnes of canola in the week ending July 29, down 1.5 percent from the week before.
Crush capacity utilization fell to 76.6 percent, down from 81.5 last week and 81.6 a year ago.
The total crushed to date is about 7.25 million tonnes, up about 165,000 tonnes over last year, however.
Several announcements were made Friday, ahead of Canada’s August long weekend. Some had to do with federal government spending, something that will not be allowed once a federal election is called.
Others were company-related, like Bunge’s announcement that it had successfully closed its deal to take over the CWB. It also announced it was ending the CWB name and calling the new entity G3 Canada Ltd.
Light crude oil nearby futures in New York were down $1.40 to US$47.12 per barrel.
The Canadian dollar at noon was US76.65 cents, down from 76.77 cents the previous trading day. The U.S. dollar at noon was C$1.3047.
The Dow Jones industrial average ended down 0.31 percent at 17,690.46. The S&P 500 finished 0.22 percent lower at 2,103.92. The Nasdaq Composite edged down 0.01 percent to 5,128.28.
Bargain buying helped lift the S&P composite 3.3 percent on the week. The Dow rose 0.7 percent, the S&P added 1.2 percent and the Nasdaq rose 0.8 percent.
For July, gains for the Dow rose 0.4 percent, the S&P climbed two percent and and Nasdaq was up 2.8 percent.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2015 502.00 +3.30 +0.66%
Canola Jan 2016 500.10 +3.60 +0.73%
Canola Mar 2016 498.00 +3.30 +0.67%
Canola May 2016 493.80 +3.40 +0.69%
Milling Wheat Oct 2015 216.00 -1.00 -0.46%
Milling Wheat Dec 2015 216.00 -1.00 -0.46%
Milling Wheat Mar 2016 220.00 -1.00 -0.45%
Durum Wheat Oct 2015 335.00 unch 0.00%
Durum Wheat Dec 2015 345.00 unch 0.00%
Durum Wheat Mar 2016 360.00 unch 0.00%
Barley Oct 2015 208.10 unch 0.00%
Barley Dec 2015 208.10 unch 0.00%
Barley Mar 2016 210.10 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Aug 2015 980.75 -9.5 -0.96%
Soybeans Sep 2015 953.25 -11.25 -1.17%
Soybeans Nov 2015 940.25 -9.75 -1.03%
Soybeans Jan 2016 945.75 -9.5 -0.99%
Soybeans Mar 2016 944.25 -9 -0.94%
Soybeans May 2016 940.75 -9 -0.95%
Soybean Meal Aug 2015 354.6 -2.5 -0.70%
Soybean Meal Sep 2015 338.7 -4 -1.17%
Soybean Meal Oct 2015 327.3 -3.2 -0.97%
Soybean Oil Aug 2015 29.98 -0.3 -0.99%
Soybean Oil Sep 2015 30.1 -0.3 -0.99%
Soybean Oil Oct 2015 30.21 -0.3 -0.98%
Corn Sep 2015 371 -2.25 -0.60%
Corn Mar 2016 392 -2.75 -0.70%
Corn May 2016 398.25 -2.75 -0.69%
Corn Jul 2016 403.5 -2.75 -0.68%
Oats Sep 2015 241.25 +6.25 +2.66%
Oats Dec 2015 252 +5.5 +2.23%
Oats Mar 2016 260.75 +3.25 +1.26%
Oats May 2016 265.5 +3.25 +1.24%
Oats Jul 2016 266.5 +3.25 +1.23%
Wheat Sep 2015 499.25 +2.75 +0.55%
Wheat Dec 2015 504.75 +0.5 +0.10%
Wheat Mar 2016 510.5 -0.75 -0.15%
Wheat May 2016 514.5 -1 -0.19%
Wheat Jul 2016 517 -1.75 -0.34%
Minneapolis
Spring Wheat Sep 2015 523.5 -3.25 -0.62%
Spring Wheat Dec 2015 541 -2.75 -0.51%
Spring Wheat Mar 2016 558.25 -2.25 -0.40%
Spring Wheat May 2016 569.5 -2.25 -0.39%
Spring Wheat Jul 2016 579.5 -2.25 -0.39%
Kansas City
Hard Red Wheat Sep 2015 492.25 +1.25 +0.25%
Hard Red Wheat Dec 2015 512 +1.25 +0.24%
Hard Red Wheat Mar 2016 525.75 +0.75 +0.14%
Hard Red Wheat May 2016 535.25 +0.5 +0.09%
Hard Red Wheat Jul 2016 543.5 unch 0.00%
