Canola rises, but loses ground to other veg oils

Canola futures did OK but continued to weaken against their vegetable oil sisters in futures market trading Monday.
A sharp increase in the Canadian dollar sapped canola’s strength relative to soybeans and soy oil
All North American crop futures rose Monday.
November canola rose $1.30 per tonne and January climbed 80 cent. The market was only weakly bidding for canola.
“We had a firm day overall but canola definitely met some resistance,” said Ken Ball of P.I. Financial in Winnipeg.
“It’s been losing its premium to the U.S. markets for the last week to 10 days. That premium is increasingly seen as not necessary.”

The premium came from the now-discredited notion that Canadian canola ending stocks would be razor-thin in 2015-16. Now that farmers seem to have a good crop in hand, canola is getting back into line with its sister commodities.
Some of the strength in U.S. crop markets came from rain that slowed U.S. Midwest harvest.
Soyoil prices were also strong on the global stage, lending strength to other markets. Soy oil was up more than two percent
Bargain buying was also seen as a factor in the markets, with crops now at levels that are tempting some users and speculators back in.
Reuters reported that European Union farmers are expected to favour canola over wheat when seeding the next crop, based on margin calculations.
The Trans-Pacific Partnership deal was announced early Monday but it was not a major market factor. Its impact will probably take years to feel and its implementation is far from certain.
The Bank of Canada noon rate for the loonie was US76.42 cents, up 0.74 cents from Friday.
The U.S. buck was at C$1.3085.
Stocks had a rip-roaring Monday, rising more than 1.5 percent on most exchanges. The weak U.S. jobs report last week led traders to think that the U.S. federal reserve might delay its interest rate increase.
Rising gasoline prices in the U.S. and Russia’s willingness to meet with OPEC and other oil producers to dicuss the market lifted crude prices more than two percent.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 212.46 points, or 1.59 percent, at 13,552.20,
The Dow Jones industrial average rose 304.06 points, or 1.85 percent to 16,776.43, the S&P 500 gained 35.69 points, or 1.83 percent, to 1,987.05 and the Nasdaq Composite added 73.49 points, or 1.56 percent, to 4,781.26.

Winnipeg ICE Futures Canada dollars per tonne

Canola Nov 2015 473.20 +1.30 +0.28%
Canola Jan 2016 477.70 +0.80 +0.17%
Canola Mar 2016 479.80 +1.00 +0.21%
Canola May 2016 479.80 +1.00 +0.21%
Canola Jul 2016 478.70 +0.90 +0.19%

Milling Wheat Oct 2015 240.00 +1.00 +0.42%
Milling Wheat Dec 2015 244.00 +1.00 +0.41%
Milling Wheat Mar 2016 249.00 +1.00 +0.40%

Durum Wheat Oct 2015 345.00 unch 0.00%
Durum Wheat Dec 2015 345.00 unch 0.00%
Durum Wheat Mar 2016 350.00 unch 0.00%

Barley Oct 2015 190.00 unch 0.00%
Barley Dec 2015 185.00 unch 0.00%
Barley Mar 2016 187.00 unch 0.00%

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

Chicago
Soybeans Nov 2015 884.25 +10 +1.14%
Soybeans Jan 2016 888.25 +10 +1.14%
Soybeans Mar 2016 891.25 +9.25 +1.05%
Soybeans May 2016 895.5 +9.25 +1.04%
Soybeans Jul 2016 900.75 +9.25 +1.04%
Soybeans Aug 2016 900 +8.75 +0.98%

Soybean Meal Oct 2015 301 +2.5 +0.84%
Soybean Meal Dec 2015 303.8 +2.6 +0.86%
Soybean Meal Jan 2016 302.6 +2.1 +0.70%

Soybean Oil Oct 2015 28.48 +0.64 +2.30%
Soybean Oil Dec 2015 28.66 +0.6 +2.14%
Soybean Oil Jan 2016 28.91 +0.57 +2.01%

Corn Dec 2015 393.5 +4.25 +1.09%
Corn Mar 2016 403.75 +4.25 +1.06%
Corn May 2016 410 +4 +0.99%
Corn Jul 2016 414.5 +4.25 +1.04%
Corn Sep 2016 407.5 +4.5 +1.12%

Oats Dec 2015 216 +3.75 +1.77%
Oats Mar 2016 220.75 +4.25 +1.96%

Oats May 2016 225 +4.25 +1.93%
Oats Jul 2016 229.25 +6 +2.69%
Oats Sep 2016 231.5 +6 +2.66%

Wheat Dec 2015 515.5 +2.25 +0.44%
Wheat Mar 2016 521.5 +2.5 +0.48%
Wheat May 2016 526 +2.75 +0.53%
Wheat Jul 2016 528.5 +3.25 +0.62%
Wheat Sep 2016 536.5 +3.5 +0.66%

Minneapolis
Spring Wheat Dec 2015 530.75 +3.5 +0.66%
Spring Wheat Mar 2016 543.5 +3.5 +0.65%
Spring Wheat May 2016 552.75 +3.5 +0.64%
Spring Wheat Jul 2016 562 +3.75 +0.67%
Spring Wheat Sep 2016 572.5 +3.5 +0.62%
Kansas City
Hard Red Wheat Dec 2015 502 +1.5 +0.30%
Hard Red Wheat Mar 2016 516.5 +1.75 +0.34%
Hard Red Wheat May 2016 526.75 +2 +0.38%
Hard Red Wheat Jul 2016 537 +2.25 +0.42%
Hard Red Wheat Sep 2016 550.75 +2 +0.36%

ed.white@producer.com