Canola gains 5% on week, spring wheat up 7.5%

July canola peaked over $500 a tonne on Friday but closed slightly lower on a week when the contract rose five percent.

U.S. wheat futures closed slightly lower but on the week they had their best performance in 6 ½ months.

American crop markets were under pressure Friday as the U.S. dollar gained about one percent against most world currencies following a better than expected May jobs report.

American traders were balancing positions ahead of next Wednesday’s USDA monthly supply and demand report.

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Chicago soybean futures reached their highest in 15 months on Tuesday, briefly topping $11 a bushel on optimism that the U.S. could reach a trade deal with China as leaders from both countries are expected to meet in South Korea on Thursday.

Canada also had a better than expected jobs report today so the loonie hardly changed against the greenback.

The rally in canola took a breather today allowing the market to consolidate. Profit taking offset the positive effect of stronger soy oil and crude oil.

Most of the canola acres that were damaged by frost last weekend have now been reseeded.

Dryness remains a serious concern over a wide part of Alberta and Saskatchewan and no widespread rain is in the forecast to offer relief.

The Saskatchewan crop report on Thursday said only 44 percent of the province’s canola crop was rated good to excellent, down from 87 percent at the same time last year. This year 32 percent of canola is poor to very poor compared to just one percent last year at the same time.

Over the week, the July contract rose five percent to $497 per tonne. November climbed 6.4 percent to $495.50. Widening basis has reduced the effect of the rally at the elevator.

From Friday May 29 to today the July contract rallied about $24 a tonne while PDQinfo.com says cash prices in western Saskatchewan climbed about $19.

Funds hold a net long position of an estimated 32,000 contracts in the July and November contracts combined, Reuters reported.

The Canadian Oilseed Processors Association said that members crushed 154,048 tonnes of canola in the week ending June 3, up 3.5 percent from the week before.

That represented a solid capacity use of 82.7 percent.

The total crush to date is 6.062 million tonnes up 4.7 percent from last year at the same time.

The wheat rally also took a breather Friday as the U.S. buck rose, but it remains supported on concerns about the hard red winter wheat crop.

Reuters reported today that fusarium head blight is showing up in Kansas fields hit by wet weather in May.

More rain is expected in Kansas next week, which could increase the disease pressure.

For the week, the front-month CBOT wheat contract rallied 8.4 percent, its biggest weekly gain since mid-November.

Kansas City hard red winter wheat rose 7.3 percent during the week and Minneapolis spring wheat gained 7.5 percent.

According to a Reuters poll, analysts expect the USDA next week will peg 2015-16 winter wheat production at 1.474 billion bushels, up two million bu. from its May estimate.

Dry weather in Western Canada is also a factor in the wheat market, but Europe and the Black Sea region have fairly good conditions, although there are spots in Russia that could do with a rain.

Corn closed lower Friday but through the week gained on the coattails of wheat, climbing 2.6 percent, the best performance since the first week of February.

Soybeans were also lower today but for the week, July soybean futures rose 0.5 percent.

Rallies in soy and corn are limited by the generally good growing weather in the U.S. Midwest.

Soy oil futures rose, hitting their highest since Aug. 11, 2014, on support from a rally in the crude oil market, Reuters said.

Soy meal was lower, weakening after early strength failed to push the benchmark July contract above Thursday’s high.

On the week, soy meal futures dipped 0.1 percent and soy oil futures rose 4.2 percent. Soy oil has risen in four of the last five weeks.

Light crude oil nearby futures in New York rose $1.13 to US$59.13 per barrel.

The Canadian dollar at noon was US80.07 cents, down from 80.15 cents the previous trading day. The U.S. dollar at noon was C$1.2489.

The Toronto Stock Exchange’s S&P/TSX composite index closed down 62.23 points, or 0.41 percent, at 14,957.16.

The Dow Jones industrial average fell 56.12 points, or 0.31 percent, to 17,849.46, the S&P 500 lost 3.05 points, or 0.15 percent, to 2,092.79 and the Nasdaq Composite added 9.33 points, or 0.18 percent, to 5,068.46.

For the week, the TSX composite fell 0.4 percent, the Dow fell 0.9 percent, the S&P 500 fell 0.7 percent and the Nasdaq was flat.

Winnipeg ICE Futures Canada dollars per tonne

Canola Jul 2015 497.00 -0.70 -0.14%

Canola Nov 2015 495.50 +0.80 +0.16%

Canola Jan 2016 492.40 +0.30 +0.06%

Canola Mar 2016 489.30 +0.10 +0.02%

Canola May 2016 486.10 unch 0.00%

Milling Wheat Jul 2015 219.00 -1.00 -0.45%

Milling Wheat Oct 2015 221.00 -1.00 -0.45%

Milling Wheat Dec 2015 221.00 -1.00 -0.45%

Durum Wheat Jul 2015 298.00 unch 0.00%

Durum Wheat Oct 2015 298.00 unch 0.00%

Durum Wheat Dec 2015 303.00 unch 0.00%

Barley Jul 2015 201.00 +4.00 +2.03%

Barley Oct 2015 191.00 +4.00 +2.14%

Barley Dec 2015 196.00 +4.00 +2.08%

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

Chicago

Soybeans Jul 2015 937.75 -8.75 -0.92%

Soybeans Aug 2015 924.5 -10.25 -1.10%

Soybeans Sep 2015 916 -9.75 -1.05%

Soybeans Nov 2015 914.25 -9.75 -1.06%

Soybeans Jan 2016 921.75 -9.25 -0.99%

Soybeans Mar 2016 926.25 -9.75 -1.04%

Soybean Meal Jul 2015 304.9 -0.8 -0.26%

Soybean Meal Aug 2015 297.9 -1.7 -0.57%

Soybean Meal Sep 2015 294.9 -2 -0.67%

Soybean Oil Jul 2015 34.78 +0.25 +0.72%

Soybean Oil Aug 2015 34.79 +0.27 +0.78%

Soybean Oil Sep 2015 34.82 +0.28 +0.81%

Corn Jul 2015 360.5 -3 -0.83%

Corn Sep 2015 367.5 -2.75 -0.74%

Corn Dec 2015 378 -3 -0.79%

Corn Mar 2016 389 -2.75 -0.70%

Corn May 2016 396.5 -2.75 -0.69%

Oats Jul 2015 258.75 +4.75 +1.87%

Oats Sep 2015 264.25 +4.5 +1.73%

Oats Dec 2015 269.75 +3 +1.12%

Oats Mar 2016 277.25 +3 +1.09%

Oats May 2016 284 +3 +1.07%

Wheat Jul 2015 517 -6.75 -1.29%

Wheat Sep 2015 521.5 -7.75 -1.46%

Wheat Dec 2015 533 -10 -1.84%

Wheat Mar 2016 545 -11.5 -2.07%

Wheat May 2016 553.25 -12 -2.12%

Minneapolis

Spring Wheat Jul 2015 571.5 -4.25 -0.74%

Spring Wheat Sep 2015 581.5 -3.5 -0.60%

Spring Wheat Dec 2015 595 -4 -0.67%

Spring Wheat Mar 2016 608.5 -4 -0.65%

Spring Wheat May 2016 617.5 -4.25 -0.68%

Kansas City

Hard Red Wheat Jul 2015 535.25 -6 -1.11%

Hard Red Wheat Sep 2015 546 -6 -1.09%

Hard Red Wheat Dec 2015 563.25 -6.25 -1.10%

Hard Red Wheat Mar 2016 577 -6 -1.03%

Hard Red Wheat May 2016 586 -5.75 -0.97%

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