Canola traders took some profits after Thursday’s strong gains and the oilseed closed a little down on Friday but for the week, the May contract gained $11.10 per tonne.
May closed at $463.40 per tonne, down $1.90 on the day. The loonie rose almost 9/10th of a cent and that also weighed on canola on Friday.
It was a good week for most crop futures, helped in part by a new general modest risk-on attitude toward commodities. American crop futures were also aided by a weakening U.S. dollar.
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In the weather, there is concern about dry conditions in large parts of Alberta and Saskatchewan. The region looks to stay dry through most of this month.
In the United States, the concern is focused on dry conditions in the western part of the hard red winter wheat region and heavy rain in the U.S. Delta and southern Midwest, which could delay seeding.
In India, rain, wind and hail are forecast this weekend raising concerns of damage just as crops are ready to harvest. There could be implications for the pulse crop.
Today’s weekly crop export report for Feb. 29 to March 6 from the Canadian Grain Commission was sobering for canola. That was the first full week that exporters had the news that China was lowering as of April 1 its acceptable dockage limit to one percent from two-to-2.5 percent.
Canola exports fell to 47,700 tonnes from 210,400 the week before
The Canadian Food Inspection Agency is discussing the issue with its Chinese counterpart. Hopefully a resolution will be found soon.
Exports had been running 20 percent ahead of last year and if they had stayed on the same track there was a chance that year-end stocks would get tight, supporting prices.
The weekly canola crush report for the week to March 9 had better news with the total rising 1.7 percent to 158,219 tonnes, although that represented only 76.6 percent of capacity, shy of the average for the year of 81.8 percent.
Soybeans closed up a little on Friday, marking the eighth day of increases. For the week the March contract gained two percent, mostly on short covering.
Soy oil rose more than one percent on Friday closing at US32.13 cents per pound. It is getting close to resistance at about 32.50 cents.
Chicago and Kansas wheat closed down today but Minneapolis spring wheat rose.
On the week, Chicago wheat rallied 3.25 percent, Kansas climbed three percent and Minneapolis was up 3.5 percent.
Funds hold a huge net short position in wheat and with concerns about dry weather in the U.S. southern Plains, they are starting to moderate their risk and are covering their shorts.
Gains though were limited by the huge global supply of wheat.
Corn gained 3.2 percent on the week on short covering and better weekly exports.
The U.S. dollar is a little weaker relative to several world currencies and that is moderating the advantage that other crop exporters had from their weak currencies.
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.
Stock markets decided the European interest rate cuts announced Thursday were a good thing after all. Rising oil prices lifted energy firm stocks.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 142.86 points, or 1.07 percent, at 13,522.00 on Friday.
The Dow Jones industrial average rose 218.18 points, or 1.28 percent, to 17,213.31, the S&P 500 gained 32.62 points, or 1.64 percent, to 2,022.19, its highest point in 2016 and the Nasdaq Composite added 86.31 points, or 1.85 percent, to 4,748.47.
For the week, the TSX composite was up 2.3 percent, the Dow rose 1.2 percent, the S&P gained 1.1 percent and the Nasdaq added 0.7 percent.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2016 461.40 -1.90 -0.41%
Canola May 2016 463.40 -1.90 -0.41%
Canola Jul 2016 465.90 -2.10 -0.45%
Canola Nov 2016 467.50 -3.10 -0.66%
Canola Jan 2017 471.40 -4.10 -0.86%
Milling Wheat Mar 2016 230.00 +1.00 +0.44%
Milling Wheat May 2016 233.00 +1.00 +0.43%
Milling Wheat Jul 2016 237.00 +1.00 +0.42%
Durum Wheat Mar 2016 288.00 unch 0.00%
Durum Wheat May 2016 293.00 unch 0.00%
Durum Wheat Jul 2016 281.00 unch 0.00%
Barley Mar 2016 174.00 unch 0.00%
Barley May 2016 176.00 unch 0.00%
Barley Jul 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 Mar 2016 888 +6.25 +0.71%
Soybeans May 2016 895.75 +6.5 +0.73%
Soybeans Jul 2016 901.5 +6.75 +0.75%
Soybeans Aug 2016 903.5 +6.75 +0.75%
Soybeans Sep 2016 903.5 +6.25 +0.70%
Soybeans Nov 2016 906.75 +6 +0.67%
Soybean Meal Mar 2016 272 +1.8 +0.67%
Soybean Meal May 2016 273.5 +1.6 +0.59%
Soybean Meal Jul 2016 276.2 +1.6 +0.58%
Soybean Oil Mar 2016 31.93 +0.52 +1.66%
Soybean Oil May 2016 32.13 +0.51 +1.61%
Soybean Oil Jul 2016 32.37 +0.51 +1.60%
Corn Mar 2016 366 +3.5 +0.97%
Corn May 2016 365 +2.25 +0.62%
Corn Jul 2016 369.5 +2 +0.54%
Corn Sep 2016 374.25 +2 +0.54%
Corn Dec 2016 382.75 +1.75 +0.46%
Oats Mar 2016 181 +3.25 +1.83%
Oats May 2016 191.5 +3.25 +1.73%
Oats Jul 2016 200.5 +2.75 +1.39%
Oats Sep 2016 207.5 +2 +0.97%
Oats Dec 2016 215.5 +1 +0.47%
Wheat Mar 2016 469.75 -1.75 -0.37%
Wheat May 2016 475.75 -1.25 -0.26%
Wheat Jul 2016 482.75 -0.5 -0.10%
Wheat Sep 2016 492 -0.5 -0.10%
Wheat Dec 2016 505.5 -0.5 -0.10%
Minneapolis
Spring Wheat Mar 2016 515.5 +3.75 +0.73%
Spring Wheat May 2016 515.25 +2.75 +0.54%
Spring Wheat Jul 2016 523.5 +3 +0.58%
Spring Wheat Sep 2016 533.25 +3 +0.57%
Spring Wheat Dec 2016 546.75 +2.75 +0.51%
Kansas City
Hard Red Wheat Mar 2016 472.5 -0.25 -0.05%
Hard Red Wheat May 2016 483 -0.25 -0.05%
Hard Red Wheat Jul 2016 493 unch 0.00%
Hard Red Wheat Sep 2016 506 unch 0.00%
Hard Red Wheat Dec 2016 525.25 -0.25 -0.05%
