Canola closed up marginally on Friday while U.S. crop futures showed a little better strength as the U.S. drought continues to dominate the trade.
The upside in canola was limited by generally good crop conditions. The recent heat might have limited yields in some pockets but overall the crop is developing well and analysts are penciling in a record production of about 16 million tonnes or more.
Thunderstorms are a regular feature of daily Prairie weather and more significant rain could come on next week with heavy amounts in southern Saskatchewan midweek.
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As of July 10, Alberta’s canola crop was 91 percent good-to-excellent, said Alberta Agriculture today.
The stronger loonie and commercial hedging resulting from larger farmer deliveries also limited canola’s gains.
November canola closed at $623.90 per tonne, up $2.40.
For the week, November gained $5.60.
U.S. farmers and traders are riveted on weather forecasts.
Rain is expected in some areas of the Midwest over the next several days but amounts will likely be inadequate to make a significant difference to the dismal production outlook. Also, temperatures are set to rise.
• A German trader told Reuters that concerns are growing about crops in the Black Sea region. The situation in Kazakhstan also appears bad and the trader speculated it might be out of the wheat export market this year.
Excess rain in west Europe threatens quality as the crop moves towards harvest.
• In Australia, cold weather is slowing wheat crop development.
• The weekly canola crush in Canada is back to the average pace after a few slow weeks. In the week ending July 11 members of the Canadian Oilseed Processors Association crushed 143,307 tonnes of canola, up 7.5 percent from the week before.
The crush so far this year is up about 12 percent over the pace at this time last year.
• China’s economic growth rate in the second quarter slowed to 7.6 percent, the slowest in more than three years. But that was close to expectations. The result was a “risk on” day with the U.S. dollar down and increased appetite for stocks and commodities.
Winnipeg (per tonne)
Canola Nov 12 $623.90, up $2.40 +0.39%
Canola Jan 13 $625.70, up $1.20 +0.19%
Canola Mar 13 $623.20, up $0.60 +0.10%
Western Barley Oct 12 $251.00, unchanged
Western Barley Dec 12 $255.00, unchanged
Milling Wheat Oct 12 $302.50, unchanged
Milling Wheat Dec 12 $310.00, unchanged
Milling Wheat Mar 13 $320.00, unchanged
Durum Wheat Oct 12 $320.50, unchanged
Durum Wheat Dec 12 $325.00, unchanged
Durum Wheat Mar 13 $331.60, unchanged
Barley Oct 12 $260.00, up $0.50 +0.19%
Barley Dec 12 $265.00, up $2.80 +1.07%
Barley Mar 13 $268.00, up $2.80 +1.06%
Chicago (per bushel)
Soybeans (P) Aug 12 $15.9475, up 22.25 cents $+1.41%
Soybeans (P) Sep 12 $15.695, up 24.0 +1.55%
Soybeans (P) Nov 12 $15.525, up 23.5 +1.54%
Soybeans (P) Jan 13 $15.4825, up 22-2 $+1.46%
Corn (P) Sep 12 $7.405, up 9.25 $+1.26%
Corn (P) Dec 12 $7.4025, up 8.0 +1.09%
Corn (P) Mar 13 $7.4175, up 7.25 $+0.99%
Oats (P) Sep 12 $3.725, up 2.0 +0.54%
Oats (P) Dec 12 $3.745, up 2.5 +0.67%
Oats (P) Mar 13 $3.79, up 2.75 +0.73%
Minneapolis (per bushel)
Spring Wheat Sep 12 $9.495, up 7.5 +0.80%
Spring Wheat Dec 12 $9.4175, up 4.75 +0.51%
Spring Wheat May 13 $9.415, up 4.5 +0.48%
The Bank of Canada noon rate for the Canadian dollar was 98.51 cents US, up from 97.90 the day before.
The U.S. dollar is $1.0151 Cdn.
Nearby crude oil in New York rose $1.02 to $87.10 per barrel.
In early tallies:
The Toronto Stock Exchange’s S&P/TSX composite index rose 89.06 points, or 0.8 percent, to close at 11,514.53.
The Dow Jones industrial average rose 203.82 points, or 1.62 percent, to 12,777.09.
The S&P 500 Index gained 22.01 points, or 1.65 percent, to 1,356.77.
The Nasdaq Composite added 42.28 points, or 1.48 percent, to 2,908.47.
For the week, the TSX was down 1.2 percent, the Dow edged up 0.04 percent, the S&P rose 0.15 percent and the Nasdaq lost 0.98 percent.
