Canola futures held on Monday in the face of a soybean price beatdown following Sept. 1 stocks reports from the U.S. Department of Agriculture.
Canola prices fell only about five cents per bushel on both the November and January contracts, while soybeans fell 37 and 36 cents per bushel on the respective contracts.
Soybean oil futuress also slumped almost two percent, making canola’s stickiness more impressive.
But broker Ken Ball of P.I. Financial in Winnipeg said he doubts it can last.
“It’s unlikely that canola will be able to maintain that sort of relative strength,” said Ball.
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U.S. grains: Soy hits four-month high on hopes for China trade deal
U.S. soybean futures jumped to their highest level in more than four months on Monday on hopes that China will resume buying American supplies after President Donald Trump said the countries were set to reach a trade deal during his trip to Asia this week.
Other crops futures weren’t hurt nearly as much as soybeans, with few major knocks to analyst expectations.
Wheat was the most interesting category, with USDA cutting hard red winter wheat stocks but increasing both soft red winter and hard red spring wheat stocks. The total pile of wheat in store is about the same, but the USDA findings sent traders scurrying to buy Kansas City futures and dump Minneapolis and Chicago in a spread play.
Of the major crop futures contracts on North American exchanges, only Kansas City wheat and December oats rose, on a day in which the grains class was the weakest of the commodities complex.
Stock markets were sharply off as the U.S. government appeared to be stumbling toward a forced shutdown for the first time in 17 years. Markets were anxious about the economic impact of thousands of workers being laid off, crucial services being disrupted and unintended consequences occurring.
ICE Futures Canada, dollars per tonne
Canola Nov 13 481.70 -2.30 -0.48%
Canola Jan 14 491.00 -2.30 -0.47%
Canola Mar 14 498.20 -2.40 -0.48%
Canola May 14 504.60 -2.10 -0.41%
Canola Jul 14 510.30 -2.00 -0.39%
Milling Wheat Oct 13 236.00 -3.00 -1.26%
Milling Wheat Dec 13 240.00 -2.00 -0.83%
Milling Wheat Mar 14 245.00 -3.00 -1.21%
Durum Wheat Oct 13 243.00 unch unch
Durum Wheat Dec 13 247.00 unch unch
Durum Wheat Mar 14 253.00 unch unch
Barley Oct 13 148.30 -10.00 -6.32%
Barley Mar 14 153.30 -10.00 -6.12%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
-2 is .25, -4 is .5 and -6 is .75
Chicago
Soybeans Nov 13 1282.75 -37-0 -2.80%
Soybeans Jan 14 1285.00 -36-4 -2.76%
Soybeans Mar 14 1267.00 -31-4 -2.43%
Soybeans May 14 1248.50 -24-6 -1.94%
Soybeans Jul 14 1241.75 -22-6 -1.80%
Soybean Meal Oct 13 409.90 -10.0 -2.38%
Soybean Meal Dec 13 405.40 -12.9 -3.08%
Soybean Meal Jan 14 403.30 -12.9 -3.10%
Soybean Oil Oct 13 40.83 -0.68 -1.64%
Soybean Oil Dec 13 41.10 -0.71 -1.70%
Soybean Oil Jan 14 41.40 -0.71 -1.69%
Corn Dec 13 441.50 -12-4 -2.75%
Corn Mar 14 454.50 -12-0 -2.57%
Corn May 14 462.25 -12-2 -2.58%
Corn Jul 14 469.00 -12-0 -2.49%
Corn Sep 14 473.75 -10-6 -2.22%
Oats Dec 13 319.25 +2-4 +0.79%
Oats Mar 14 306.00 -4-6 -1.53%
Oats May 14 302.75 -8-6 -2.81%
Oats Sep 14 302.75 -10-6 -3.43%
Wheat Dec 13 678.50 -4-4 -0.66%
Wheat Mar 14 687.00 -4-4 -0.65%
Wheat May 14 689.75 -4-4 -0.65%
Wheat Jul 14 677.00 -7-2 -1.06%
Wheat Sep 14 681.50 -7-0 -1.02%
Minneapolis
Spring Wheat Dec 13 728.75 -2-6 -0.38%
Spring Wheat Mar 14 738.00 -2-6 -0.37%
Spring Wheat May 14 741.00 -3-2 -0.44%
Spring Wheat Jul 14 745.50 unch unch
Spring Wheat Sep 14 746.50 -2-4 -0.33%
Kansas City
KCBT Red Wheat Dec 13 739.50 +7-6 +1.06%
KCBT Red Wheat Mar 14 740.25 +7-2 +0.99%
KCBT Red Wheat May 14 739.25 +5-4 +0.75%
KCBT Red Wheat Jul 14 719.25 +2-6 +0.38%
Light crude oil nearby futures in New York dropped 16 cents at $102.87 US per barrel.
The Bank of Canada noon rate for the loonie was 97.23 cents US, up from 97.09 cents the previous trading day. The U.S. dollar at noon was $1.0285 Cdn.
In unofficial tallies —
The Toronto Stock Exchange’s S&P/TSX composite index closed down 56.89 points, or 0.44 percent, at 12,787.19.
The Dow Jones industrial average was down 128.57 points, or 0.84 percent, at 15,129.67.
The Standard & Poor’s 500 Index was down 10.20 points, or 0.60 percent, at 1,681.55.
The Nasdaq Composite Index was down 10.12 points, or 0.27 percent, at 3,771.48.
For the month, the Dow rose 2.2 percent and the Nasdaq added 5.1 percent. For the quarter, the Dow was up 1.5 percent while the S&P 500 gained 4.7 percent.
