Canola futures prices were relatively strong Monday, rising 80 cents for the November contract and 60 cents for the January, even as all other major North American crop futures fell.
But November canola couldn’t stay above $500 per tonne, closing at $499 after peaking at $505.60 earlier in the session. January futures closed at $506.50.
The Monday strength in canola was seen by some as just a reaction to oversold conditions created by the huge selloff since canola briefly made it back to $540 per tonne, seemingly rising above a support line at $520 per tonne.
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But $520 didn’t hold and sub-$500 prices bring canola back to disappointing levels that haven’t been seen since mid-August.
Fundamental pressure to canola prices continues to be applied by the prairie weather, which is giving farmers much needed freedom from frost as well as warmth and dryness to get the crop into the bin. Some strength from soybeans has been adopted by canola, but not enough to compensate for the overwhelming weakness of the vegetable oil component of its price structure.
Soybeans are trading at a premium because of great tightness of meal in North America, but most of canola’s value comes from its oil, and its meal is less highly-valued per kilogram than soy meal.
Commodity markets were mixed Monday, with crops being the weakest component, but stock markets rose sharply, with good news on consumer borrowing encouraging notions that the economic recovery is continuing in the United States, and tech fans are keen to see the new iPhone, expected to be unveiled tomorrow.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2013 499.00 +0.80 +0.16%
Canola Jan 2014 506.50 +0.60 +0.12%
Canola Mar 2014 512.80 +1.10 +0.21%
Canola May 2014 517.20 +1.70 +0.33%
Canola Jul 2014 520.40 +2.50 +0.48%
Milling Wheat Oct 2013 240.00 -6.00 -2.44%
Milling Wheat Dec 2013 244.00 -8.00 -3.17%
Milling Wheat Mar 2014 249.00 -8.00 -3.11%
Durum Wheat Oct 2013 259.00 unch 0.00%
Durum Wheat Dec 2013 267.00 unch 0.00%
Durum Wheat Mar 2014 273.00 unch 0.00%
Barley Oct 2013 189.00 unch 0.00%
Barley Dec 2013 194.00 unch 0.00%
Barley Mar 2014 194.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Sep 2013 1404.25 -32.75 -2.28%
Soybeans Nov 2013 1356.5 -11.25 -0.82%
Soybeans Jan 2014 1355.75 -9.5 -0.70%
Soybeans Mar 2014 1338.25 -4.75 -0.35%
Soybeans May 2014 1309.5 -1.25 -0.10%
Soybeans Jul 2014 1303 -1.25 -0.10%
Soybean Meal Sep 2013 465.8 -16.3 -3.38%
Soybean Meal Dec 2013 426.5 -2.4 -0.56%
Soybean Oil Sep 2013 42.81 -0.55 -1.27%
Soybean Oil Oct 2013 42.88 -0.55 -1.27%
Soybean Oil Dec 2013 43.17 -0.55 -1.26%
Corn Sep 2013 477.25 -14.25 -2.90%
Corn Dec 2013 463.5 -4.75 -1.01%
Corn Mar 2014 476.5 -4.5 -0.94%
Corn May 2014 484.75 -4.75 -0.97%
Corn Jul 2014 491.25 -4.25 -0.86%
Oats Sep 2013 362.75 -5.75 -1.56%
Oats Dec 2013 313.75 -5.75 -1.80%
Oats Mar 2014 318.75 -5.75 -1.77%
Oats May 2014 322 -5 -1.53%
Oats Jul 2014 313 -5 -1.57%
Wheat Sep 2013 628.75 -6.25 -0.98%
Wheat Dec 2013 641.25 -6.5 -1.00%
Wheat Mar 2014 653.5 -6.75 -1.02%
Wheat May 2014 661.25 -7.25 -1.08%
Wheat Jul 2014 657 -5.75 -0.87%
Minneapolis
Spring Wheat Sep 2013 698.75 -9 -1.27%
Spring Wheat Dec 2013 702.75 -10 -1.40%
Spring Wheat Mar 2014 717 -9.25 -1.27%
Spring Wheat May 2014 726 -8.25 -1.12%
Spring Wheat Jul 2014 732 -9.25 -1.25%
Kansas City
KCBT Red Wheat Sep 2013 701.5 -7 -0.99%
KCBT Red Wheat Dec 2013 688.5 -7 -1.01%
KCBT Red Wheat Mar 2014 696.25 -7.25 -1.03%
KCBT Red Wheat May 2014 700.75 -7.75 -1.09%
KCBT Red Wheat Jul 2014 692 -4.75 -0.68%
Light crude oil nearby futures in New York dropped $1.01 at $109.52 US per barrel.
The Canadian dollar at noon was 96.47 cents US, up from 96.25 cents the previous trading day. The U.S. dollar at noon was $1.0366 Cdn.
Stocks rose Monday, supported by news that China’s exports grew 7.2 percent in August, above market expectations of a 6 percent rise from a year earlier,
There was lingering support from Friday’s U.S. jobs numbers that were lower than expected, meaning the U.S. Federal Reserve will likely delay its tapering of stimulus.
The Toronto Stock Exchange’s and S&P/TSX composite index closed up 33.72 points, or 0.26 percent, at 12,854.64.
The Dow Jones industrial average rose 140.62 points, or 0.94 percent, to closeat 15,063.12.
The Standard & Poor’s 500 Index was up 16.54 points, or 1.00 percent, at 1,671.71.
The Nasdaq Composite Index was up 46.17 points, or 1.26 percent, at 3,706.18.
