Canola futures acted Friday the way they had done for most of the week: they edged higher in light trading with little drama.
But broader markets and cereals were more exciting.
November Winnipeg canola futures rose $2 per tonne to $563.40 and January was up $1.10 to $571.10.
The prairie canola crop appears to be generally OK, with three quarters reported by the Canola Council of Canada to be in good shape, so that held back the potential of any major gains Friday.
Chicago soybeans were modestly higher, with a weather forecast for Midwestern weather to be hot for the next week or two, helping keep prices from slipping.
Bad U.S. data on “Jobs Friday” – the monthly release of unemployment numbers – restrained commodity demand and helped push down crude oil prices. The increase of the U.S. unemployment rate to 9.2 percent took away hopes that general commodity prices would be supported by increasing U.S. demand.
Soybean futures’ general slight rise compared to weakness in energy markets revealed the positive influence of the hot weather forecast.
But corn escaped the bigger commodity market concerns, rising sharply as traders once again focus on the incredible tightness of stocks both in the U.S. and around the world, and after chewing over Thursday’s U.S. Department of Agriculture numbers showing continuing Chinese purchases of U.S. corn. If China reappears in the corn market each time it slides like recently, the downside to corn prices appears to be limited.
The forecast for hot weather is also helping corn prices, with corn in its crucial yield setting stages right now. Too much heat now will limit the crop’s maximum potential.
Wheat prices mostly shared corn’s positive tone, without the same amount of outright bullishness, however. American and world supplies of wheat are ample compared to corn, and the better quality of the hard red winter wheat crop that is now being harvested is holding back the bulls.
The good production news in Kansas meant weaker spring wheat futures in Minneapolis, with high protein and high quality wheat the weakest of the wheat class Friday.
The spread between Chicago, Kansas City and Minneapolis wheat futures was dramatic, with Chicago soft red winter wheat rising almost 17 cents per bushel, Kansas City hard red winter rising three cents and Minneapolis falling almost eight cents.
Winnipeg (per tonne)
Canola Jul 11 $578.40, up $7.00
Canola Nov 11 $563.40, up $2.00
Canola Jan 12 $571.10, up $1.10
Canola Mar 12 $577.70, up $1.30
Western Barley Jul 11 $207.00, unchanged
Chicago (per bushel)
Soybeans Jul 11 $13.5200, up 6.50 cents
Soybeans Aug 11 $13.4675, up 6.00
Soybeans Nov 11 $13.4650, up 8.75
Corn Jul 11 $6.7225, up 22.25
Corn Dec 11 $6.3700, up 21.50
Oats Jul 11 $3.4550, up 4.50
Oats Dec 11 $3.5675, up 4.50
Minneapolis (per bushel)
Spring Wheat Jul 11 $8.5000, down 3.25 cents
Spring Wheat Sep 11 $8.1700, down 7.75
Spring Wheat Dec 11 $8.1675, down 3.00
