Canola faded after making a good start Monday, losing ground to soybean products, but still posting a gain on the day.
“Canola turned quite a bit weaker going into the close,” said Ken Ball, broker with P.I. Financial in Winnipeg.
“It started out two, three, four dollars ahead (of soybean product values) and finished a couple or three dollars weaker than they were.”
A weak Canadian dollar in overnight trade helped push up canola near the $470 per tonne resistance level, but then the loonie rallied during the day.
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Feed Grains Weekly: Price likely to keep stepping back
As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
May canola closed up $3 per tonne, at $466.40. July was up $1.40, closing at $467.30.
Canola has had a nice rebound since the beginning of March, climbing to near $470 per tonne from less than $450, but has not been able to break through resistance in recent days.
Ball said spread traders have played a big role in the recent softness, with many appearing to favour soybeans to canola.
Corn prices rose a few cents per bushel Monday, with some speculating that the Friday news that funds had continued to expand their record short position led to some short-covering.
Heavy rain fell in the U.S. Delta region in recent days, damaging prospects for some crops such as soft red winter wheat.
The melting of snow cover in Western Canada is a worry for winter wheat growers, leaving their crop exposed to a deep freeze that could yet return in late March or early April. Snow is expected in northeastern Saskatchewan on Tuesday
Warm weather on the Canadian Prairies has brought much talk about how early farmers might begin to seed. Farmers are always keen to get an early start, but equally keen to avoid the risk of spring frosts. Even if the danger of freezing temperatures can be avoided, seeding some crops like soybeans too early can damage yields if seeds sit in wet ground for too long.
In India, more inclement weather on the weekend damaged wheat, chickpea and canola, raising fears of a repeat of last year’s disastrous harvest season. More rain is expected midweek.
Light crude oil nearby futures in New York were up 66 cents to US$38.50 per barrel.
The Canadian dollar at noon was US75.67 cents, up from 74.78 cents the previous trading day. The U.S. dollar at noon was C$1.3215.
Winnipeg ICE Futures Canada dollars per tonne
Canola May 2016 466.40 +3.00 +0.65%
Canola Jul 2016 467.30 +1.40 +0.30%
Canola Nov 2016 468.20 +0.70 +0.15%
Canola Jan 2017 471.70 +0.30 +0.06%
Canola Mar 2017 474.30 +0.30 +0.06%
Milling Wheat May 2016 234.00 +1.00 +0.43%
Milling Wheat Jul 2016 237.00 unch 0.00%
Milling Wheat Oct 2016 237.00 unch 0.00%
Durum Wheat May 2016 290.00 -3.00 -1.02%
Durum Wheat Jul 2016 278.00 -3.00 -1.07%
Durum Wheat Oct 2016 266.00 -3.00 -1.12%
Barley May 2016 176.00 unch 0.00%
Barley Jul 2016 180.00 unch 0.00%
Barley Oct 2016 180.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans May 2016 895.75 unch 0.00%
Soybeans Jul 2016 902 +0.5 +0.06%
Soybeans Aug 2016 904 +0.5 +0.06%
Soybeans Sep 2016 904 +0.5 +0.06%
Soybeans Nov 2016 907 +0.25 +0.03%
Soybeans Jan 2017 911.25 +0.25 +0.03%
Soybean Meal May 2016 271.5 -2 -0.73%
Soybean Meal Jul 2016 274.2 -2 -0.72%
Soybean Meal Aug 2016 275.3 -1.9 -0.69%
Soybean Oil May 2016 32.45 +0.32 +1.00%
Soybean Oil Jul 2016 32.68 +0.31 +0.96%
Soybean Oil Aug 2016 32.75 +0.3 +0.92%
Corn May 2016 368.75 +3.75 +1.03%
Corn Jul 2016 373.5 +4 +1.08%
Corn Sep 2016 378.5 +4.25 +1.14%
Corn Dec 2016 387 +4.25 +1.11%
Corn Mar 2017 395.5 +4.25 +1.09%
Oats May 2016 196 +4.5 +2.35%
Oats Jul 2016 205.5 +5 +2.49%
Oats Sep 2016 212.25 +4.75 +2.29%
Oats Dec 2016 219.75 +4.25 +1.97%
Oats Mar 2017 219.75 +4.25 +1.97%
Wheat May 2016 478.75 +3 +0.63%
Wheat Jul 2016 485.75 +3 +0.62%
Wheat Sep 2016 495 +3 +0.61%
Wheat Dec 2016 508.25 +2.75 +0.54%
Wheat Mar 2017 521.25 +2.5 +0.48%
Minneapolis
Spring Wheat May 2016 521.25 +6 +1.16%
Spring Wheat Jul 2016 529.5 +6 +1.15%
Spring Wheat Sep 2016 538.75 +5.5 +1.03%
Spring Wheat Dec 2016 552.25 +5.5 +1.01%
Spring Wheat Mar 2017 564.75 +5 +0.89%
Kansas City
Hard Red Wheat May 2016 489 +6 +1.24%
Hard Red Wheat Jul 2016 499 +6 +1.22%
Hard Red Wheat Sep 2016 512.25 +6.25 +1.24%
Hard Red Wheat Dec 2016 531.25 +6 +1.14%
Hard Red Wheat Mar 2017 543.5 +5.5 +1.02%
