Canola gains four percent on week, crush pace recovers

A late session rally helped canola futures close higher Friday and post a $17.10 per tonne weekly gain.

A weaker Canadian dollar, stronger pace of canola crush, speculator interest and the rising soybean complex all supported canola, which climbed $4.80 on the day in the January contract.

The Canadian Oilseed Processors Association said members crushed 145,019 tonnes of canola in the week ending Dec. 10. That was up almost nine percent over the week before and represented a capacity use of about 80 percent, the best performance in many weeks.

January canola gained four percent over the week.

It was an upbeat day in crop markets as all the crops closed higher even as crude oil and stock markets fell sharply.

Wheat was again supported by the uncertainty over Russian exports.

Reuters reported exporters of Russian wheat have cut prices to try to speed up sales abroad before the government possibly introduces curbs to replenish its own stocks and prevent rises in the domestic cost of bread, traders and analysts said on Friday.

This came after agriculture minister Nikolai Fyodorov told a parliamentary commission on Thursday that his ministry would consider all options to restrain exports, “except an embargo”, and cover domestic demand, Reuters reported.

Now that Russia is part of the WTO it can’t embargo exports as it did in 2010. There is a lot of conflicting information from Russia. On Tuesday the deputy prime minister was quoted as saying there were no discussions about restricting exports.

Soybeans rose today on spill over support from corn. Over the week January soybeans rose 1.1 percent.

CBOT December soymeal expired at $378.50 per ton, plunging $27.60 lower in the final minutes as traders liquidated positions ahead of expiration, Reuters reported.

Cash soymeal supplies have been tight during December but appear set to ease in the first quarter of 2015 as processors replenished soybean stocks.

Reuters reported U.S. crush margins continue to improve. Illinois processors’ crush is $3.85 a bushel, up from $3.77 a week ago, according to USDA’s weekly Illinois processors’ report issued on Thursday.

Corn rose on solid weekly exports and ideas that China might be prepared to relax restrictions on U.S. corn and DDGS.

Syngenta, the maker of the GMO corn that China has not approved, said today that it expected to win Chinese government approval “in the near future.”

Corn topped the psychologically important $4 per bushel level for the first time since July 10. Over the week, March corn rose three percent.

The higher corn futures price unleashed a flood of farmer selling.

Some U.S. farmers locked in cash prices of $4.20 for delivery in January of 2016 for grain they will plant this spring, a trader in Indiana said.

Light crude oil nearby futures in New York was hammered down $2.14 to US$57.81 per barrel.

The Canadian dollar at noon was US86.66 cents, down from 86.69 cents the previous trading day. The U.S. dollar at noon was C$1.1540.

Oil’s collapsing price is not just an issue of over supply. The trade is also coming to think that demand is waning, indicating a weakening global economy and that touched off today’s battering in the stock markets.

Stocks were also hurt by a report Friday showing China’s factory output growth slowed more than expected in November and growth in investment neared a 13-year low.

The markets largely ignored a report on U.S. consumer sentiment that came in at an eight year high.

In unofficial tallies —

The Toronto Stock Exchange’s S&P/TSX composite index ended down 173.22 points or 1.25 percent at 13,731.90.

Over the week, it lost more than five percent, the worst performance since September 2011.

The Dow Jones industrial average fell 315.51 points, or 1.79 percent, to 17,280.83, the S&P 500 lost 33 points, or 1.62 percent, to 2,002.33 and the Nasdaq Composite dropped 54.57 points, or 1.16 percent, to 4,653.60.

The S&P dropped 3.5 percent on the week after seven straight weeks of gains.

 

Winnipeg ICE Futures Canada dollars per tonne

Canola Jan 2015       439.80       +4.80       +1.10%

Canola Mar 2015       436.20       +5.80       +1.35%

Canola May 2015       435.80       +5.10       +1.18%

Canola Jul 2015       436.50       +4.70       +1.09%

Canola Nov 2015       433.50       +4.70       +1.10%

 

Milling Wheat Mar 2015       233.00       +1.00       +0.43%

Milling Wheat May 2015       236.00       +1.00       +0.43%

Milling Wheat Jul 2015       239.00       +1.00       +0.42%

 

Durum Wheat Mar 2015       357.50       unch       0.00%

Durum Wheat May 2015       357.50       unch       0.00%

Durum Wheat Jul 2015       357.50       unch       0.00%

 

Barley Mar 2015       177.00       unch       0.00%

Barley May 2015       179.00       unch       0.00%

Barley Jul 2015       181.00       unch       0.00%

 

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

 

Chicago

Soybeans Jan 2015       1047.25       +5       +0.48%

Soybeans Mar 2015       1053.75       +5       +0.48%

Soybeans May 2015       1059.5       +4.75       +0.45%

Soybeans Jul 2015       1064.5       +4.75       +0.45%

Soybeans Aug 2015       1061.5       +4.75       +0.45%

Soybeans Sep 2015       1038.5       +3       +0.29%

 

Soybean Meal Jan 2015       367       -4.5       -1.21%

Soybean Meal Mar 2015       356.3       -1.9       -0.53%

Soybean Meal May 2015       350.7       -0.8       -0.23%

 

Soybean Oil Jan 2015       32.36       +0.34       +1.06%

Soybean Oil Mar 2015       32.57       +0.33       +1.02%

Soybean Oil May 2015       32.79       +0.32       +0.99%

 

Corn Mar 2015       407.5       +9       +2.26%

Corn May 2015       415.75       +9.25       +2.28%

Corn Jul 2015       421.5       +9       +2.18%

Corn Sep 2015       424.75       +7.5       +1.80%

Corn Dec 2015       431.75       +7       +1.65%

 

Oats Mar 2015       312.5       +1       +0.32%

Oats May 2015       315.75       +1.25       +0.40%

Oats Jul 2015       317       -1       -0.31%

Oats Sep 2015       315.5       +2.25       +0.72%

Oats Dec 2015       309       +3.75       +1.23%

 

Wheat Mar 2015       606.5       +9       +1.51%

Wheat May 2015       608.75       +8.5       +1.42%

Wheat Jul 2015       607.75       +6.25       +1.04%

Wheat Sep 2015       615.75       +5.75       +0.94%

Wheat Dec 2015       627       +4.75       +0.76%

 

Minneapolis

Spring Wheat Mar 2015       620.75       +5.5       +0.89%

Spring Wheat May 2015       627       +4.25       +0.68%

Spring Wheat Jul 2015       634       +3.5       +0.56%

Spring Wheat Sep 2015       641.25       +3.5       +0.55%

Spring Wheat Dec 2015       654.5       +3.75       +0.58%

 

Kansas City

Hard Red Wheat Mar 2015       634.25       +6.75       +1.08%

Hard Red Wheat May 2015       637       +5.5       +0.87%

Hard Red Wheat Jul 2015       640.25       +5.5       +0.87%

Hard Red Wheat Sep 2015       649.25       +4.5       +0.70%

Hard Red Wheat Dec 2015       663.75       +5.25       +0.80%

 

 

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