It was a case of buy the rumour, sell the fact today when corn prices fell after the United States Department of Agriculture slashed its forecast of American corn production and ending stocks.
But oilseeds edged higher on the tight U.S. supply and indications that prices are not yet high enough to choke off demand.
China was in the market this week for large quantities for nearby delivery.
November canola closed at $617.10, up $8.
For the week the November contract fell 90 cents.
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November soybeans closed at $16.4375 on Friday, up 12.5 cents from Thursday.
Corn initially jumped higher and set a new record high price of $8.49 per bushel but then fell back and closed lower at $8.0925 despite USDA’s ending stocks forecast that was a 17 year low and represents only three weeks of supply.
Although the cuts in corn were more than expected, it was not enough to jolt traders into thinking that corn needed to rise much beyond its near-record high level.
The chorus of voice calling for reductions in the amount of corn used to make ethanol is rising. The governors of Maryland and Delaware today asked the federal government to suspend or roll back the fuel ethanol mandate. They joined similar calls from the United Nations and the International Food Policy Research Institute.
Livestock groups called for a roll back of ethanol requirements last month.
• Wheat futures fell after the USDA raised its forecast for U.S. wheat production. USDA cut world wheat production, but the drop was less than expected.
• Cooler and wetter weather is forecast in the Midwest next week. It will come too late for corn but could halt the damage in soybeans if rainfall amounts are significant.
• The Canadian Oilseed Processors Association said members crushed 6.724 million tonnes of canola in the 2011-12 crop year, a utilization rate of 88.7 percent.
In the first eight days of the new crop year, to Aug. 8, members crushed 148,167 tonnes.
• Gains in canola were limited this week by the beginning of harvest in Western Canada and the stronger Canadian dollar that is above par.
The general expectation is that there will be a huge Canadian canola crop, but early yields in Manitoba’s harvest are disappointing as disease and insects have taken a toll.
•On Thursday ICE Futures Canada delisted the western barley contract.
Winnipeg (per tonne)
Canola Nov 12 $617.10, up $8.00 +1.31%
Canola Jan 13 $621.50, up $8.70 +1.42%
Canola Mar 13 $622.10, up $7.80 +1.27%
Canola May 13 $618.00, up $7.80 +1.28%
Milling Wheat Oct 12 $303.40, down $0.40 -0.13%
Milling Wheat Dec 12 $309.00, down $0.40 -0.13%
Milling Wheat Mar 13 $319.00, down $0.40 -0.13%
Durum Wheat Oct 12 $309.00, unchanged
Durum Wheat Dec 12 $313.50, unchanged
Durum Wheat Mar 13 $320.10, unchanged
Barley Oct 12 $264.50, unchanged
Barley Dec 12 $269.50, unchanged
Barley Mar 13 $272.50, unchanged
Chicago (per bushel)
Soybeans (P) Aug 12 $17.095, up 15.0 cents +0.89%
Soybeans (P) Sep 12 $16.7325, up 18.5 +1.12%
Soybeans (P) Nov 12 $16.4375, up 12.5 +0.77%
Soybeans (P) Jan 13 $16.355, up 18.75 +1.16%
Corn (P) Sep 12 $8.035 -14.75 -1.80%
Corn (P) Dec 12 $8.12 -11.75 -1.43%
Corn (P) Mar 13 $8.12 -11.75 -1.43%
Oats (P) Sep 12 $3.8825, down 1.25 $-0.32%
Oats (P) Dec 12 $3.8475, down 0.75 -0.19%
Oats (P) Mar 13 $3.825, up 0.5 +0.13%
Minneapolis (per bushel)
Spring Wheat Sep 12 $9.3555, down 23.5 cents -2.45%
Spring Wheat Dec 12 $9.4575, down 22.5 -2.32%
Spring Wheat Mar 13 $9.545, down 22.25 -2.28%
Spring Wheat May 13 $9.5525, down 23.25 -2.38%
The Bank of Canada noon rate for the Canadian dollar was $1.0085, up from $1.0077 the day before.
The U.S. dollar was 99.16 cents Cdn.
Nearby light crude oil in New York was $92.87 per barrel, down 49 cents.
Toronto Stock Exchange S&P/TSX composite index rose 32.76 points, or 0.28 percent, to close at 11,890.89.
The Dow Jones industrial average rose 42.76 points, or 0.32 percent, to end at 13,207.95.
The Standard & Poor’s 500 Index gained 3.06 points, or 0.22 percent, to finish at 1,405.86.
The Nasdaq Composite Index added 2.22 points, or 0.07 percent, to close at 3,020.86.
For the week, the Dow rose 0.8 percent, the S&P 500 climbed 1.1 percent and the Nasdaq jumped 1.8 percent and the TSX jumped 1.96 percent.
