Canola posts weekly gain but lags soybeans

Canola futures closed higher on Friday and most active March posted a $9.20 per tonne or two percent gain on the week.

Over the week, the weak Canadian dollar, commercial buying and rising soybeans and soy oil values supported canola.

Gains were capped by expectation of a large South American soybean harvest and light farmer selling.

ICE reported no deliveries of January canola. The contract expires on Jan. 14.

The Canadian Oilseed Processors Association said members crushed 127,637 tonnes of canola in the week ending Jan. 7, down 2.6 percent from the week before.

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That represented a capacity use of about 70 percent, about 10 points lower than the average for the year.

Soybean futures edged higher Friday as traders positioned ahead of Monday’s USDA reports on supply and demand and stocks.

Over the week March soybeans rose 4.4 percent.

March soymeal futures were 2.6 percent higher for the week and March soy oil jumped 4.9 percent.

USDA is expected to trim its soybean production and ending stocks figures on Monday.

March corn rose almost 1.5 percent on Friday on a bull spreading rally connected to several corn export sales announced Thursday and Friday.

Also, traders were positioning ahead of the USDA reports Monday. Some traders think USDA will revise down the acreage of the 2014 corn crop, trimming the production number.

In December USDA pegged production at 14.407 billion bushels. The average of trade estimates in a Reuters poll is for the corn crop to be 14.349 billion bu.

Over the week, March corn gained about one percent.

Wheat futures fell Friday and also posted a weekly loss.

Chicago wheat fell 3.2 percent this week, their third straight week of declines.

Minneapolis spring wheat faired better, falling only 1.3 percent this week.

On Monday the USDA will release its first survey-based estimate of winter wheat acreage.

Reuters reported that analysts expect the report to show more U.S. winter wheat seedings versus a year ago, with most of the increase in hard red winter wheat. Soft red winter wheat area is expected to be down from a year ago.

One set of the numbers traders will watch on Monday is U.S. ending stocks.

On average, traders expect wheat stocks to be 666 million bushels, up from the December estimate of 654 million.

For corn, traders on average expect 1.927 billion bu., down from 1.998 billion.

For soybeans they expect 393 million bu., down from the December outlook for 410 million.

Stock markets were down Friday after gains early this week.

Weak Canadian job growth in December and mixed employment results in the U.S. weighed on the market Friday.

Canada’s unemployment rate remained at 6.6 percent, with a net loss of 4,300 positions.

In the U.S. the economy created 252,000 jobs and the jobless rate fell 0.2 percent to 5.6 percent.

But a larger than expected number of people left the labour force and hourly earnings fell 0.2 percent, taking the shine off the report.

After edging up for two days, crude oil fell again on Friday.

Light crude oil nearby futures in New York fell 43 cents to US$48.36 per barrel.

The Canadian dollar at noon was US84.34 cents, down from 84.66 cents the previous trading day. The U.S. dollar at noon was C$1.1857.

The Toronto Stock Exchange’s S&P/TSX composite index closed down 72.80 points, or 0.5 percent, at 14,384.92.

The Dow Jones industrial average fell 168.71 points, or 0.94 percent, to 17,739.16.

The S&P 500 lost 17.21 points, or 0.83 percent, to 2,044.93.

The Nasdaq Composite dropped 32.12 points, or 0.68 percent, to 4,704.07.

For the week, the TSX fell 2.5 percent, the Dow fell 0.5 percent, the S&P 500 fell 0.6 percent and the Nasdaq lost 0.5 percent.

ICE Futures Canada, dollars per tonne

Canola Jan 2015 466.00 +0.30 +0.06%

Canola Mar 2015 452.20 +0.50 +0.11%

Canola May 2015 448.60 -1.00 -0.22%

Canola Jul 2015 446.30 -1.80 -0.40%

Canola Nov 2015 434.50 -2.70 -0.62%

Milling Wheat Mar 2015 219.00 -2.00 -0.90%

Milling Wheat May 2015 222.00 -2.00 -0.89%

Milling Wheat Jul 2015 224.00 -2.00 -0.88%

Durum Wheat Mar 2015 365.00 unch 0.00%

Durum Wheat May 2015 355.00 unch 0.00%

Durum Wheat Jul 2015 345.00 unch 0.00%

Barley Mar 2015 182.00 +5.00 +2.82%

Barley May 2015 184.00 +5.00 +2.79%

Barley Jul 2015 186.00 +5.00 +2.76%

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

Chicago

Soybeans Jan 2015 1051.5 +6.5 +0.62%

Soybeans Mar 2015 1052.25 +4 +0.38%

Soybeans May 2015 1057.5 +3.75 +0.36%

Soybeans Jul 2015 1062 +3.25 +0.31%

Soybeans Aug 2015 1059 +2.75 +0.26%

Soybeans Sep 2015 1037.25 +2.5 +0.24%

Soybean Meal Jan 2015 363.8 +2.5 +0.69%

Soybean Meal Mar 2015 349.1 +1.9 +0.55%

Soybean Meal May 2015 344.1 +1.9 +0.56%

Soybean Oil Jan 2015 33.54 -0.04 -0.12%

Soybean Oil Mar 2015 33.68 -0.08 -0.24%

Soybean Oil May 2015 33.83 -0.08 -0.24%

Corn Mar 2015 400.25 +6 +1.52%

Corn May 2015 408.25 +5.5 +1.37%

Corn Jul 2015 414.5 +5 +1.22%

Corn Sep 2015 417 +4.75 +1.15%

Corn Dec 2015 421.5 +4.25 +1.02%

Oats Mar 2015 303.25 +1 +0.33%

Oats May 2015 304.25 unch 0.00%

Oats Jul 2015 308.25 +0.5 +0.16%

Oats Sep 2015 306.5 +0.25 +0.08%

Oats Dec 2015 304.25 unch 0.00%

Wheat Mar 2015 563.75 -3.25 -0.57%

Wheat May 2015 567.75 -4.25 -0.74%

Wheat Jul 2015 572.5 -4.25 -0.74%

Wheat Sep 2015 579 -4.25 -0.73%

Wheat Dec 2015 589.75 -4.5 -0.76%

Minneapolis

Spring Wheat Mar 2015 603.25 -5.25 -0.86%

Spring Wheat May 2015 609.75 -5.5 -0.89%

Spring Wheat Jul 2015 616.5 -5.75 -0.92%

Spring Wheat Sep 2015 622.5 -5.75 -0.92%

Spring Wheat Dec 2015 632.25 -5 -0.78%

Kansas City

Hard Red Wheat Mar 2015 600.5 -7.25 -1.19%

Hard Red Wheat May 2015 605.25 -7 -1.14%

Hard Red Wheat Jul 2015 609.25 -6.25 -1.02%

Hard Red Wheat Sep 2015 620 -6 -0.96%

Hard Red Wheat Dec 2015 633.25 -6.75 -1.05%

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