Canola futures gained on Friday but not enough to prevent a loss on the week.
The weaker Canadian dollar leant strength on the last trading day of the month. Commercial and processor buying was noted.
But canola got no help from soybeans and corn, which fell on improving Midwest weather with showers helping to alleviate stress from last week’s heat. Also, U.S. markets were generally lower on the uncertainty over Washington’s inability to compromise on reducing the deficit and increasing the debt ceiling. The deadline for increasing the ceiling is Aug. 2 and worries are mounting that Congress might not find a solution that can get majority support.
Canola fell $3.70 per tonne on the week.
The Canadian Oilseed Processors Association reported that members crushed 126,144 tonnes of canola in the week ending July 27. That was up 4.5 percent from the previous week.
The crush total so far this crop year is up almost 30 percent from last year.
Winnipeg (per tonne)
Canola Nov 11 $557.20, up $1.80
Canola Jan 12 $565.80, up $1.90
Canola Mar 12 $571.80, up $1.40
Canola May 12 $577.10, up $1.10
The previous day’s best basis was $6 above the November contract according to ICE Futures Canada in Winnipeg.
The July contract’s 14-day Relative Strength Index was 40. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Oct 11 $205, unchanged
Chicago (per bushel)
Soybeans Aug 11 $13.5425, down 13.5 cents
Soybeans Sep 11 $13.485, down 14.0
Soybeans Nov 11 $13.5725, down 14.25
Corn Sep 11 $6.655, down 16.75
Corn Dec 11 $6.6875, down 17.5
Oats Sep 11 $3.455, down 5.25
Oats Dec 11 $3.575, down 5.5
Minneapolis (per bushel)
Spring Wheat Sep 11 $8.3075, down 16.0 cents
Spring Wheat Dec 11 $8.315, down 15.5
Spring Wheat Mar 12 $8.4025, down 16.0
Light crude oil nearby futures in New York fell $1.74 to $95.70 US per barrel.
The Canadian dollar at noon was $1.0484 US, down from $1.0544 the previous trading day. The U.S. dollar at noon was 95.38 cents Can.
Political wrangling over the U.S. deficit and debt ceiling continued to keep markets on edge.
The Toronto Stock Exchange composite index closed down 102.15 points, or 0.78 percent, at 12,945.63.
The Standard & Poor’s 500 Index was down 8.39 points, or 0.65 percent, to 1,292.28.
There was new data on how the U.S. economy stalled in the first half of the year.
The S&P 500 lost 3.9 percent on the week, its worst performance in about a year.
