Canola prices show strength

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.

Read Also

Dekalb’s blast from the past

Bayer celebrated the brand’s greatest seed hits at Canada’s Outdoor Farm Show

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 Oct 2013 430.6 -4.1 -0.94%
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.