Canola futures finished the week on a down note but over the week they posted modest gains.
Today’s loss was associated with a stronger Canadian dollar, commercial hedging of recently delivered crop and weaker soybeans.
July canola closed at $514.10 per tonne, down $6.50 or 1.25 percent.
New crop November closed at $520.40, down $5.90 or 1.12 percent.
On the week July rose only $1.30 or 0.25 percent and November climbed $2.10 or 0.4 percent.
The canola rally this week lagged behind soybeans, where the July contract jumped 4.2 percent and November rose 2.75 percent.
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Today, currency issues and profit taking dominated the crop market.
The U.S. dollar fell and the Canadian dollar rose after the U.S. Labor Department released the May job creation report, showing that the American economy created only 38,000 jobs, well short of the expectation for 162,000.
That lessened the expectation for the Federal Reserve to increase interest rates at its June 14-15 meeting.
The weaker U.S. dollar didn’t do much to lift U.S. crop futures.
Sold crop soybean futures fell on profit taking after hitting two year highs. November edged higher on a weekly export report that showed good new crop sales.
Wheat rose on concerns about heavy rain in western Europe damaging wheat crops.
France’s wheat crop was already deteriorating by Monday with the weekly report pegging soft wheat at 81 percent good to excellent, down two points from the week before and down eight points from last year at the same time.
Durum was 70 percent good to excellent, down eight points on the week and down three from last year.
Generally good weather across the Canadian Prairies is supporting crop growth. It should be mostly dry into early next week but Wednesday-Thursday could generate rain, with the largest accumulation in central Alberta.
Although the crush margins for Canadian canola are attractive, the week’s crush fell to 139,987 tonnes, down 22 percent from the week before. That was about 68 percent of industry capacity. The average for the year is 81.4 percent.
However, the export market bounced back from last week’s poor showing, with canola shipments totaling 211,800 tonnes, up from 78,600 tonnes the week before.
Exports are on track to hit the forecast of a record 10 million tonnes.
Australia Oilseeds Federation has forecast the canola harvest this year will hit 3.39m tonnes, up about 300,000 tonnes over last year.
Rain in May has helped the crop after a dry start earlier this year.
U.S. May job creation was less than forecast, lowering the expectation for a June U.S. interest rate increase. Reuters reported that all major Wall Street bank now expect the Fed will leave interest rates alone this month.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 89.79 points, or 0.64 percent, at 14,226.78. It gained 0.9 percent on the week, its fourth straight weekly advance.
The Dow Jones industrial average was down 31.91 points, or 0.18 percent, to 17,806.65, the S&P 500 lost 6.15 points, or 0.29 percent, to 2,099.11 and the Nasdaq Composite dropped 28.85 points, or 0.58 percent, to 4,942.52.
Light crude oil nearby futures in New York were down 55 cents to US$48.62 per barrel.
The Canadian dollar at noon was US77.23 cents, up 0.78 cent from 76.45 cents the previous trading day. The U.S. dollar at noon was C$1.2948.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2016 514.10 -6.50 -1.25%
Canola Nov 2016 520.40 -5.90 -1.12%
Canola Jan 2017 523.40 -5.90 -1.11%
Canola Mar 2017 524.30 -6.30 -1.19%
Canola May 2017 525.30 -6.50 -1.22%
Milling Wheat Jul 2016 243.00 +3.00 +1.25%
Milling Wheat Oct 2016 240.00 +4.00 +1.69%
Milling Wheat Dec 2016 244.00 +3.00 +1.24%
Durum Wheat Jul 2016 302.00 unch 0.00%
Durum Wheat Oct 2016 296.00 unch 0.00%
Durum Wheat Dec 2016 298.00 unch 0.00%
Barley Jul 2016 171.50 unch 0.00%
Barley Oct 2016 171.50 unch 0.00%
Barley Dec 2016 171.50 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jul 2016 1132 -12.25 -1.07%
Soybeans Aug 2016 1122 -8.75 -0.77%
Soybeans Sep 2016 1101.25 -1.25 -0.11%
Soybeans Nov 2016 1085.25 +3.5 +0.32%
Soybeans Jan 2017 1082.5 +4.75 +0.44%
Soybeans Mar 2017 1055.5 +8.75 +0.84%
Soybean Meal Jul 2016 414.3 -4 -0.96%
Soybean Meal Aug 2016 397.7 -1.7 -0.43%
Soybean Meal Sep 2016 390 +1.2 +0.31%
Soybean Oil Jul 2016 32.26 unch 0.00%
Soybean Oil Aug 2016 32.38 +0.01 +0.03%
Soybean Oil Sep 2016 32.51 +0.03 +0.09%
Corn Jul 2016 418.25 +3 +0.72%
Corn Sep 2016 419.75 +4 +0.96%
Corn Dec 2016 419.75 +3 +0.72%
Corn Mar 2017 426 +3.25 +0.77%
Corn May 2017 429.25 +3 +0.70%
Oats Jul 2016 188 -2.75 -1.44%
Oats Sep 2016 200.75 -2.75 -1.35%
Oats Dec 2016 213.25 -2 -0.93%
Oats Mar 2017 223.75 -0.5 -0.22%
Oats May 2017 223.75 -0.5 -0.22%
Wheat Jul 2016 497.25 +11.75 +2.42%
Wheat Sep 2016 506.75 +10.5 +2.12%
Wheat Dec 2016 523 +9 +1.75%
Wheat Mar 2017 540 +9 +1.69%
Wheat May 2017 551.25 +9 +1.66%
Minneapolis
Spring Wheat Jul 2016 539.5 +7.25 +1.36%
Spring Wheat Sep 2016 547.75 +7 +1.29%
Spring Wheat Dec 2016 560.5 +6.75 +1.22%
Spring Wheat Mar 2017 572.5 +6.75 +1.19%
Spring Wheat May 2017 580.5 +6.75 +1.18%
Kansas City
Hard Red Wheat Jul 2016 474 +9.5 +2.05%
Hard Red Wheat Sep 2016 489.75 +9 +1.87%
Hard Red Wheat Dec 2016 513 +8.25 +1.63%
Hard Red Wheat Mar 2017 529.25 +8 +1.53%
Hard Red Wheat May 2017 539.25 +8 +1.51%
