Canola futures rose everyday this week, supported by the record pace of exports and domestic crush.
March canola posted a small gain on Friday, up only 70 cents to $527.80 per tonne but over the week, the price rose $14.50 or 2.8 percent.
New crop November rose 80 cents to $507.30 today, but over the week it rose $5.50 a tonne.
Combined exports and domestic crush are running more than a million tonnes ahead of last year.
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There is more on the record pace of demand later in this report.
Rising crude oil and general optimism in all markets helped to support crop prices. Traders are starting to roll out of the March contract and into Soybeans today bounced back from Thursday’s decline. They shook off the USDA report that kept year end domestic soybean stocks unchanged. The trade had expected some trimming.
Instead, the trade today looked at the current strong pace of soybean exports and stronger-than-expected China imports of commodities generally in January.
China imported 7.66 million tonnes of soybeans in January, the highest for the month since at least 2010, as delayed shipments arrived during the month and crushing demand remained strong, Reuters reported.
WHEAT
Wheat rose again on the bullish ending stocks reduction in the USDA report on Thursday and on spring-like temperatures in the U.S. southern Plains that will dry soil.
Over the week, Minneapolis March futures rose about 14.25 cents or 2.6 percent to US$4.60 ½ .
Kansas hard red winter wheat rose 20 cents a bushel over the week and its price is now the strongest since late August.
The PDQinfo.ca website said today’s cash price in south western Saskatchewan for No. 1 CWRS 13.5 was C$6.50 a bushel, up from $6.33 the previous Friday.
CORN
Corn has had two strong days, with March closing today at US$4.60 ½, breaking above resistance at $4.57 ½. It was the highest since late August.
USDA on Thursday cut its forecast for U.S. domestic corn stocks.
Excessive rain at the U.S. West Coast and heavy snow in the Rockies is delaying movement of American grain to port and loading of ships at port, Reuters reported.
It has also been exceptionally snowy and wet in Vancouver and could reduce loading of ships at the Canadian port.
BOOMING CANOLA DEMAND
The weekly canola crush was 182,083 tonnes, down 3.3 percent from the previous week but up 12 percent from the same week last year. The crush represented 85 percent of capacity, shy of the average to date of 89 percent.
Total crush to date is at a record pace at 4.88 million tonnes, up 14.3 percent from the 4.27 million processed last year at the same time.
Canola exports continue to fly out the door.
Week 27 exports were 291,600 tonnes, up from 275,500 tonnes the week before.
To date, canola exports are running at a record pace at 5.58 million tonnes, up from 5.06 million last year at this time
Combined, exports and crush are more than a million tonnes ahead of last year at this point.
OUTSIDE MARKETS
Canada’s job creation in January topped expectations at 48,300, lowering the unemployment rate to 6.8 percent from 6.9 even as more people entered the workforce.
Light crude oil nearby futures in New York were up 86 cents to US$53.86 per barrel.
The Canadian dollar at noon was US76.49 cents, up from 76.10 cents the previous trading day. The U.S. dollar at noon was C$1.3074.
Stock prices continued to rise the day after U.S. President Donald Trump said he would formally propose “phenomenal” tax reform. China’s booming imports also supported the market.
The Toronto Stock Exchange reached an all time high on Friday.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 111.82 points, or 0.72 per cent at 15,729.12, surpassing its record close of 15,657.63 from Sept. 3, 2014.
The major U.S. indexes also closed in record territory.
The Dow Jones Industrial Average rose 98.48 points, or 0.49 percent, to 20,270.88, the S&P 500 gained 8.28 points, or 0.36 percent, to 2,316.15 and the Nasdaq Composite added 18.95 points, or 0.33 percent, to 5,734.13.
For the week, the TSX surged 1.6 percent, the Nasdaq jumped 1.2 percent, the Dow rose one percent and the S&P 500 climbed 0.8 percent.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 17 527.80 +0.70 +0.13%
Canola May 17 536.00 +1.00 +0.19%
Canola Jul 17 538.90 +1.20 +0.22%
Canola Nov 17 507.30 +0.80 +0.16%
Canola Jan 18 513.20 +2.50 +0.49%
Milling Wheat Mar 17 245.00 +1.00 +0.41%
Milling Wheat May 17 249.00 +3.00 +1.22%
Milling Wheat Jul 17 249.00 +3.00 +1.22%
Durum Wheat Mar 17 290.00 -3.00 -1.02%
Durum Wheat May 17 292.00 -4.00 -1.35%
Durum Wheat Jul 17 287.00 -8.00 -2.71%
Barley Mar 17 135.00 unch unch
Barley May 17 137.00 unch unch
Barley Jul 17 138.00 unch unch
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Mar 2017 1059.00 +8.50 +0.81%
Soybeans May 2017 1070.00 +8.50 +0.80%
Soybeans Jul 2017 1077.75 +8.25 +0.77%
Soybeans Aug 2017 1074.75 +8.00 +0.75%
Soybeans Sep 2017 1052.00 +6.25 +0.60%
Soybeans Nov 2017 1030.00 +4.00 +0.39%
Soybean Meal Mar 2017 342.10 +3.70 +1.09%
Soybean Meal May 2017 346.50 +3.90 +1.14%
Soybean Meal Jul 2017 349.10 +4.00 +1.16%
Soybean Oil Mar 2017 34.61 -0.06 -0.17%
Soybean Oil May 2017 34.89 -0.06 -0.17%
Soybean Oil Jul 2017 35.10 -0.06 -0.17%
Corn Mar 2017 374.50 +5.00 +1.35%
Corn May 2017 382.00 +4.75 +1.26%
Corn Jul 2017 388.75 +4.75 +1.24%
Corn Sep 2017 394.00 +4.25 +1.09%
Corn Dec 2017 399.25 +3.50 +0.88%
Oats Mar 2017 254.50 unch 0.00%
Oats May 2017 254.75 +1.75 +0.69%
Oats Jul 2017 251.25 -0.25 -0.10%
Oats Sep 2017 242.25 -0.25 -0.10%
Oats Dec 2017 238.25 unch 0.00%
Wheat Mar 2017 449.00 +5.50 +1.24%
Wheat May 2017 463.00 +7.75 +1.70%
Wheat Jul 2017 474.75 +7.75 +1.66%
Wheat Sep 2017 486.50 +7.25 +1.51%
Wheat Dec 2017 503.00 +7.00 +1.41%
Minneapolis
Spring Wheat Mar 2017 572.50 +4.00 +0.70%
Spring Wheat May 2017 570.25 +3.75 +0.66%
Spring Wheat Jul 2017 570.50 +3.25 +0.57%
Spring Wheat Sep 2017 572.25 +4.25 +0.75%
Spring Wheat Dec 2017 580.00 +5.50 +0.96%
Kansas
Hard Red Wheat Mar 2017 460.50 +9.25 +2.05%
Hard Red Wheat May 2017 473.25 +9.75 +2.10%
Hard Red Wheat Jul 2017 484.50 +9.50 +2.00%
Hard Red Wheat Sep 2017 497.25 +8.50 +1.74%
Hard Red Wheat Dec 2017 517.25 +7.25 +1.42%
Chicago livestock futures in US¢/pound (rounded to two decimal places)
Live Cattle (P) Feb 2017 116.40 -1.25 -1.06%
Live Cattle (P) Apr 2017 113.15 -1.68 -1.46%
Live Cattle (P) Jun 2017 104.28 -1.00 -0.95%
Feeder Cattle (P) Mar 2017 122.08 -1.55 -1.25%
Feeder Cattle (P) Apr 2017 122.45 -1.60 -1.29%
Feeder Cattle (P) May 2017 121.80 -1.35 -1.10%
Lean Hogs (P) Feb 2017 74.55 +0.33 +0.44%
Lean Hogs (P) Apr 2017 71.08 +0.30 +0.42%
Lean Hogs (P) May 2017 75.40 +0.60 +0.80%
