Canola futures closed slightly lower Thursday, pressured by a stronger loonie and profit taking.
The range of trade was tiny, only about $3. A few minutes before the close January canola’s price was about $443.50 but a last moment flurry of selling drove the close to $441.20.
Crop futures on American exchanges climbed with support from fund buying. With the weakness in crude oil and other commodity areas, big investment funds think that crop commodities have a better chance of appreciating.
Soybeans edged higher supported by strong weekly export sales of soy meal, although weekly sales of soybeans were at the low end of the expected range.
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Feed Grains Weekly: Price likely to keep stepping back
As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
Support also came from a strike of dock workers at a port in Argentina.
Wheat rose again on the idea that Russia will limit exports. Reuters reported that in addition to using quality issues as a tool to limit exports, Russia is using its state-owned railway to slow grain movement to port.
However, wheat closed well below its daily high indicating possible weakness, even though weekly U.S. wheat exports sales were at the top of the range of expectations.
Slightly supportive to wheat was news that Strategie Grains trimmed its forecast for European Union 2015 wheat production.
It pegged wheat production at 148.1 million tonnes, down 600,000 tonnes from a forecast made last month and down about seven million from the bumper crop of 2014.
However, that would still be an above average crop.
The lower estimate this month was because seeded acreage in Bulgaria, Hungary and Croatia was less than expected due to rain at sowing.
It sees durum wheat rising 600,000 tonnes to 7.9 million.
Barley production is forecast at 58 million tonnes, down 2.1 million to a three-year low of 58.0 million tonnes.
Argentina’s government raised its forecast for the wheat harvest to 13.2 million tonnes, up 1.2 million from its previous outlook
The United States and Cuba on Wednesday announced a thawing in relations that could lead to resumption in trade.
If so, The U.S. would likely capture a good portion of Cuba’s wheat market.
Last year France provided most of Cuba’s needs, about 550,000 tonnes. Last year Cuba imported about 190,000 tonnes of Canadian wheat.
Although growing conditions in South America are generally favourable, southern Argentina is expected to get drier over the next couple of weeks.
Light crude oil nearby futures in New York fell $2.36 to US$54.11 per barrel.
The Canadian dollar at noon was US86.25 cents, up from 85.99 cents the previous trading day. The U.S. dollar at noon was C$1.1594.
There was big rally on Wall Street following statements Wednesday from the U.S. Federal Reserve about the strength of the American economic recovery and about a “patient” approach to raising interest rates.
The Dow Jones industrial average rose 421.28 points, or 2.43 percent, to 17,778.15, the S&P 500 gained 48.34 points, or 2.4 percent, to 2,061.23 and the Nasdaq Composite added 104.08 points, or 2.24 percent, to 4,748.40.
The Toronto market rose on bargain buying after the recent sharp decline.
In an unofficial tally, the TSX composite closed up 133.36 points or 0.94 percent at 14,346.75.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jan 2015 442.10 -1.30 -0.29%
Canola Mar 2015 437.60 -0.10 -0.02%
Canola May 2015 436.90 -0.10 -0.02%
Canola Jul 2015 437.70 -0.40 -0.09%
Canola Nov 2015 431.80 -2.50 -0.58%
Milling Wheat Mar 2015 244.00 -2.00 -0.81%
Milling Wheat May 2015 246.00 -2.00 -0.81%
Milling Wheat Jul 2015 247.00 -2.00 -0.80%
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 1035 +8 +0.78%
Soybeans Mar 2015 1043.25 +8 +0.77%
Soybeans May 2015 1050.25 +9.25 +0.89%
Soybeans Jul 2015 1056 +9.25 +0.88%
Soybeans Aug 2015 1053.75 +9.25 +0.89%
Soybeans Sep 2015 1034.5 +9.5 +0.93%
Soybean Meal Jan 2015 365.3 +6 +1.67%
Soybean Meal Mar 2015 353.9 +4.2 +1.20%
Soybean Meal May 2015 348.4 +3.2 +0.93%
Soybean Oil Jan 2015 31.89 +0.12 +0.38%
Soybean Oil Mar 2015 32.08 +0.11 +0.34%
Soybean Oil May 2015 32.3 +0.11 +0.34%
Corn Mar 2015 411 +2.75 +0.67%
Corn May 2015 419.5 +3 +0.72%
Corn Jul 2015 426.25 +3 +0.71%
Corn Sep 2015 428.5 +3.25 +0.76%
Corn Dec 2015 434.75 +2.75 +0.64%
Oats Mar 2015 316.25 +1.25 +0.40%
Oats May 2015 319.5 +0.75 +0.24%
Oats Jul 2015 318.5 -0.75 -0.23%
Oats Sep 2015 318 -0.5 -0.16%
Oats Dec 2015 311.5 +0.5 +0.16%
Wheat Mar 2015 655.25 +6.75 +1.04%
Wheat May 2015 656.75 +6 +0.92%
Wheat Jul 2015 654 +7.25 +1.12%
Wheat Sep 2015 660.75 +6.75 +1.03%
Wheat Dec 2015 670 +6.5 +0.98%
Minneapolis
Spring Wheat Mar 2015 661 +1.25 +0.19%
Spring Wheat May 2015 667 +3.25 +0.49%
Spring Wheat Jul 2015 673.25 +5.25 +0.79%
Spring Wheat Sep 2015 676.75 +5.5 +0.82%
Spring Wheat Dec 2015 685.75 +5.25 +0.77%
Kansas City
Hard Red Wheat Mar 2015 683.75 +2.25 +0.33%
Hard Red Wheat May 2015 687.5 +3 +0.44%
Hard Red Wheat Jul 2015 688.25 +4.25 +0.62%
Hard Red Wheat Sep 2015 695.25 +4 +0.58%
Hard Red Wheat Dec 2015 705.75 +3 +0.43%
