Stronger vegetable oil futures and steady demand helped lift November canola futures market $4.50 on the week.
Canola closed Friday with a modest daily gain, but any rise is impressive given the record size of the Canadian crop and reports from the U.S. that soybean and corn yields are better than expected.
Soybeans edged lower Friday, but soy oil was up, still feeding off of strong palm oil exports from Malaysia. The brisk palm export pace is preventing a feared stock buildup associated with the current peak production period in the palm tree’s annual cycle.
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In Canada, domestic crushers and export customers continued a steady buying pace that is supporting prices.
Nov. canola closed at $484.60, up $2.90 or 0.6 percent on the day.
Wheat was the big mover today with the Minneapolis contract gaining more than two percent and Chicago front month climbing 2.8 percent and topping a key $7 support level.
The main driver was news from Argentina. The government there late on Thursday pegged the wheat crop at 8.8 million tonnes. Many analysts had penciled in a number slightly below 10 million and the last USDA report had the crop at 12 million tonnes.
Dry and cold weather has been taking a toll on Argentina’s crop. Adding to its troubles, this weekend there is a chance for frost that could harm the crop as it heads.
Argentina is a key supplier to neighbour Brazil. Because of Argentina’s small crop last year it has run out of exportable supply and Brazil has had to turn to other suppliers, including the U.S. and that has helped lift wheat prices. If Argentina produces another small crop, it would sustain the increased export opportunity for the U.S., Canada and others.
Wheat futures were also supported by the potential of a strike at CN Rail in Canada. If it happens, that would present additional export opportunity for the U.S.
Harvest of the huge U.S. corn crop kept downward pressure on corn futures.
The Canadian Oilseed Processors Association said members crushed 146,529 tonnes of canola in the week ending Oct. 16, down 3.5 percent from the week before. That represents a capacity use of about 84 percent.
USDA says it will release three weeks of crop export data on Oct. 31 to bring itself up to date after the government shutdown.
A weather system will move across southwestern Manitoba Saturday night bringing the first snow of the season, Environment Canada said. Current indications are that only two to five cm of snow is expected to fall with highest amounts over Riding Mountain National Park and Turtle Mountain Provincial Park. Conditions will improve Sunday morning.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2013 484.60 +2.90 +0.60%
Canola Jan 2014 494.80 +3.00 +0.61%
Canola Mar 2014 502.90 +3.10 +0.62%
Canola May 2014 509.60 +2.90 +0.57%
Canola Jul 2014 515.40 +2.80 +0.55%
Milling Wheat Dec 2013 241.00 +6.00 +2.55%
Milling Wheat Mar 2014 247.00 +6.00 +2.49%
Milling Wheat May 2014 252.00 +5.00 +2.02%
Durum Wheat Dec 2013 247.00 unch 0.00%
Durum Wheat Mar 2014 253.00 unch 0.00%
Durum Wheat May 2014 257.00 unch 0.00%
Barley Dec 2013 152.00 unch 0.00%
Barley Mar 2014 154.00 unch 0.00%
Barley May 2014 155.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Nov 2013 1291.25 -2 -0.15%
Soybeans Jan 2014 1289.75 +0.25 +0.02%
Soybeans Mar 2014 1272.75 -0.5 -0.04%
Soybeans May 2014 1257.25 -0.5 -0.04%
Soybeans Jul 2014 1253.5 -1 -0.08%
Soybeans Aug 2014 1242 -1 -0.08%
Soybean Meal Dec 2013 410.1 -2.9 -0.70%
Soybean Meal Jan 2014 405.6 -2.4 -0.59%
Soybean Meal Mar 2014 394.9 -3 -0.75%
Soybean Oil Dec 2013 41.68 +0.56 +1.36%
Soybean Oil Jan 2014 41.99 +0.56 +1.35%
Soybean Oil Mar 2014 42.4 +0.57 +1.36%
Corn Dec 2013 441.5 -1.5 -0.34%
Corn Mar 2014 454 -1.5 -0.33%
Corn May 2014 462.25 -1.5 -0.32%
Corn Jul 2014 469.5 -1.25 -0.27%
Corn Sep 2014 475.25 -0.75 -0.16%
Oats Dec 2013 335.75 +4 +1.21%
Oats Mar 2014 310.25 +2.5 +0.81%
Oats May 2014 309 +3.25 +1.06%
Oats Jul 2014 304.25 +1.5 +0.50%
Oats Sep 2014 303.25 +1.5 +0.50%
Wheat Dec 2013 705.75 +19.75 +2.88%
Wheat Mar 2014 714.5 +18.5 +2.66%
Wheat May 2014 716.5 +17.25 +2.47%
Wheat Jul 2014 702.75 +15.5 +2.26%
Wheat Sep 2014 707.75 +15.25 +2.20%
Minneapolis
Spring Wheat Dec 2013 760.25 +15.25 +2.05%
Spring Wheat Mar 2014 770 +15.25 +2.02%
Spring Wheat May 2014 774.75 +15 +1.97%
Spring Wheat Jul 2014 773 +12.5 +1.64%
Spring Wheat Sep 2014 771.5 +13.5 +1.78%
Kansas City
KCBT Red Wheat Dec 2013 768.75 +19.75 +2.64%
KCBT Red Wheat Mar 2014 766.25 +18.25 +2.44%
KCBT Red Wheat May 2014 763.25 +15.75 +2.11%
KCBT Red Wheat Jul 2014 746.5 +13.75 +1.88%
KCBT Red Wheat Sep 2014 751.75 +12.5 +1.69%
Light crude oil nearby futures in New York rose 14 cents at $100.81 US per barrel.
The Canadian dollar at noon was 97.21 cents US, down slightly from 97.23 cents the previous trading day. The U.S. dollar at noon was $1.0287 Cdn.
In early tallies —
The Toronto Stock Exchange composite closed up 99.64 points or 0.76 percent at 13,136.00.
The Dow Jones industrial average rose 24.98 points, or 0.16 percent, to close at 15,396.63.
The Standard & Poor’s 500 Index was up 11.23 points, or 0.65 percent, at 1,744.38 a fresh all time high.
The Nasdaq Composite Index was up 51.13 points, or 1.32 percent, at 3,914.28.
For the week, the TSX composite rose 1.9 percent, the Dow rose one percent, the S&P was up 2.4 percent and the Nasdaq advanced 3.2 percent.
