Canola treaded water Monday, falling only slightly, even as soybean oil fell even lower.
That was a product of the Canadian dollar falling yet again, said P.I. Financial broker Ken Ball.
“It is a Canadian dollar market, period,” said Ball about canola’s seeming strength.
Soybean oil, usually one of the leaders of the vegetable oil parade that canola plays a small role in, has been low and falling in recent weeks, but canola prices have held up well.
That’s mostly the impact of the loonie falling, Ball said, with a lower loonie seeming to bring in firm prices when converted into Canada’s currency.
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But with the dollar slipping to near 80 cents, Ball has been advising farmers to hedge forward prices because they might not survive a temporary turnaround in the loonie.
“We’ve been advising producers today that it’s nice that canola’s up here, but don’t get too entranced by it. Don’t think canola’s invulnerable. It could be hit very hard,” said Ball.
“If the Canadian dollar ever rallies and kicks up two or three cents, canola’s just going to be decimated.”
Overall grain futures markets were mixed, with soybean meal and soybeans strong while wheat was the weakest, followed by soybean oil. Corn moved little and spring wheat fell less than 10 cents on nearby contracts.
Wheat’s weakness wasn’t dramatic, but it drags that crop down to almost three-month lows, with decent growing conditions in various places and soft demand. Rains in the southern Plains helped traders relax about hard red winter wheat crops.
Soybeans were strong after soybean meal surged higher on reports of good exports and demand. The slump in soybean oil didn’t have as much impact as the rise in meal because soybeans are a meal-dominated crop in terms of pricing.
Stock markets were uneventful but generally slightly higher.
Light crude oil nearby futures in New York were down 44 cents to US$45.15 per barrel.
The Canadian dollar at noon was US80.57 cents, down from US80.63 cents the previous trading day. The U.S. dollar at noon was C$1.2411.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2015 460.70 -0.80 -0.17%
Canola May 2015 455.90 +0.30 +0.07%
Canola Jul 2015 449.10 +0.20 +0.04%
Canola Nov 2015 435.30 -0.80 -0.18%
Canola Jan 2016 437.30 -0.70 -0.16%
Milling Wheat Mar 2015 218.00 -2.00 -0.91%
Milling Wheat May 2015 221.00 -2.00 -0.90%
Durum Wheat Mar 2015 363.00 unch 0.00%
Durum Wheat May 2015 353.00 unch 0.00%
Durum Wheat Jul 2015 343.00 unch 0.00%
Barley Mar 2015 195.00 unch 0.00%
Barley May 2015 197.00 unch 0.00%
Barley Jul 2015 199.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Mar 2015 983.5 +10.75 +1.11%
Soybeans May 2015 990.25 +10.75 +1.10%
Soybeans Jul 2015 996 +10.75 +1.09%
Soybeans Aug 2015 996.25 +10.75 +1.09%
Soybeans Sep 2015 982.75 +11.75 +1.21%
Soybeans Nov 2015 971.75 +12 +1.25%
Soybean Meal Mar 2015 338.9 +7.4 +2.23%
Soybean Meal May 2015 331.6 +7.9 +2.44%
Soybean Meal Jul 2015 329.8 +7.9 +2.45%
Soybean Oil Mar 2015 31.08 -0.52 -1.65%
Soybean Oil May 2015 31.28 -0.51 -1.60%
Soybean Oil Jul 2015 31.48 -0.51 -1.59%
Corn Mar 2015 384 -2.75 -0.71%
Corn May 2015 392.5 -2.75 -0.70%
Corn Jul 2015 400 -2.75 -0.68%
Corn Sep 2015 406.5 -2.75 -0.67%
Corn Dec 2015 414.25 -3 -0.72%
Oats Mar 2015 290.75 +0.25 +0.09%
Oats May 2015 294 unch 0.00%
Oats Jul 2015 298.5 +0.25 +0.08%
Oats Sep 2015 301 +0.5 +0.17%
Wheat Mar 2015 520.5 -9.5 -1.79%
Wheat May 2015 524.25 -8.5 -1.60%
Wheat Jul 2015 529.25 -7.25 -1.35%
Wheat Sep 2015 537.25 -7 -1.29%
Wheat Dec 2015 549.25 -6.5 -1.17%
Minneapolis
Spring Wheat Mar 2015 569 -7 -1.22%
Spring Wheat May 2015 576 -6.5 -1.12%
Spring Wheat Jul 2015 584.75 -6 -1.02%
Spring Wheat Sep 2015 593.25 -5.25 -0.88%
Spring Wheat Dec 2015 603 -5 -0.82%
Kansas City
Hard Red Wheat Mar 2015 554.5 -9.5 -1.68%
Hard Red Wheat May 2015 560 -9 -1.58%
Hard Red Wheat Jul 2015 564 -8.25 -1.44%
Hard Red Wheat Sep 2015 576 -7.75 -1.33%
Hard Red Wheat Dec 2015 590.5 -7.5 -1.25%
