Canola futures slipped lower on weakness in soybeans and generally lower commodities and equities.
Soybeans were still under the influence of bearish data in the U.S. Department of Agriculture report on Wednesday. It raised its outlook for year-end soybean stocks.
In the past week the July contract fell $6.90 per tonne and the November contract fell $6.60 per tonne.
Viterra forecasted on Thursday that Western Canadian canola seeded area would be 17-18.35 million acres, down from the Statistics Canada March prospective planting survey intention of 19.2 million.
Viterra expects total seeded area will be 54-56 million acres, only a little more than last year and about 4.5 to 6.5 million down from 2009.
The Canadian Oilseed Processors Association said members crushed 86,457 tonnes of canola in the week ending June 8, down 4.8 percent from the previous week. Crushing has slowed a lot in the last two weeks. Through most of the winter and spring weekly crushing topped 120,000 tonnes.
Corn touched a record high, supported by expectations of very tight stocks.
Nearby Chicago wheat climbed on expectation that livestock feeders would substitute feed wheat for corn in rations. High protein wheat in Minneapolis fell.
Winnipeg (per tonne)
Canola Jul 11 $590.20, down $2.60
Canola Nov 11 $593.20, down $2.60
Canola Jan 12 $600.60, down $2.80
Canola Mar 12 $607.30, down $3.00
The previous day’s best basis was $14 under the July contract according to ICE Futures Canada in Winnipeg.
The July contract’s 14-day Relative Strength Index was 55. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Jul 11 $205, unchanged
Chicago (per bushel)
Soybeans Jul 11 $13.8725, down 6.5 cents
Soybeans Aug 11 $13.8225, down 5.0
Soybeans Nov 11 $13.8175, down 5.0
Corn Jul 11 $7.87, up 1.5
Corn Dec 11 $7.125, down 1.5
Oats Jul 11 $3.955, up 0.5
Oats Dec 11 $4.075, up 1.5
Minneapolis (per bushel)
Spring Wheat Jul 11 $10.00, down 20.75 cents
Spring Wheat Sep 11 $9.4875, down 15.75
Spring Wheat Dec 11 $9.48, down 12.75
Light crude oil nearby futures in New York fell $2.64 to $99.29 US per barrel on news that Saudi Arabia is offering more oil to Asian customers. This looks like the Saudis are acting independently to reign in oil prices after it failed to get OPEC support earlier this week.
The Canadian dollar at noon was $1.0238 US, down from $1.0275 the previous trading day. The U.S. dollar at noon was 97.68 cents Cdn.
The Toronto Stock Exchange composite index closed down 171.74 points, or 1.3 pct, at 13,084.00
The Standard and Poor’s 500 index fell 18.02 points, or 1.40 percent, to 1,270.98.
The TSX was down 3.2 percent for the week.
The Dow was down 1.6 percent, the S&P 500 was off 2.2 percent and the Nasdaq was down 3.3 percent.
