Canola edged up Monday, regaining a bit of relative value versus soy products, but staying within its recent range.
Weather factors are paramount in the crop markets.
More rain in Argentina and heavy rain in France were big topics today but weather impacts are not fundamentally changing global supply and demand outlooks.
“The markets are still very, very erratic and swingy and choppy,” said P.I. Financial broker Ken Ball.
“It’s springtime and there are all sorts of stuff happening.”
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“Canola came in (to June 6 markets) looking fairly cheap to buyers today,” said Ball.
November canola prices are caught within a range that has lasted since May, from roughly $510 per tonne to $530, holding onto gains from the March to May rally, but having a hard time breaking above $525 in the November contract.
“It’s certainly met some resistance factors,” said Ball.
The action on Monday occurred with plenty of fund activity and little producer selling.
Weather reports, which suggested large parts of the United States will have five days of sun with little moisture, led to some speculation that yield potentials could be challenged.
“It doesn’t take much for the spec buyers to come in and goose things up a bit,” said Ball.
Presently, canola is bouncing up against resistance, but also refusing to fall too far, as weather and supply and demand factors help its outlook seem positive to investors.
“It’s not expensive,” said Ball.
ed.white@producer.com
France’s farm ministry on Monday said wet weather had favoured disease development in rapeseed crops and that other winter crops may see yields suffer in the European Union’s largest grain producer, Reuters reported.
“Concerns persist about crop conditions following recent rainfall, with great heterogeneity across regions,” French consultancy Agritel said in a note, adding that it would impact both area and yields.
“This is not just about France but this seems to be the case for the entire European continent, through Ukraine and southern Russia,” it said.
Light crude oil nearby futures in New York were up $1.07 to US$49.69 per barrel.
The Canadian dollar at noon was US77.78 cents, up from 77.23 cents the previous trading day. The U.S. dollar at noon was C$1.2856.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 49.38 points, or 0.35 percent, at 14,276.16.
The Dow Jones industrial average .DJI ended up 113.27 points, or 0.64 percent, at 17,920.33. The S&P 500 rose 10.28 points, or 0.49 percent, at 2,109.41 and the Nasdaq Composite climbed 26.20 points, or 0.53 percent, to 4,968.71.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2016 517.10 +3.00 +0.58%
Canola Nov 2016 522.60 +2.20 +0.42%
Canola Jan 2017 526.60 +3.20 +0.61%
Canola Mar 2017 527.60 +3.30 +0.63%
Canola May 2017 528.90 +3.60 +0.69%
Milling Wheat Jul 2016 243.00 unch 0.00%
Milling Wheat Oct 2016 240.00 unch 0.00%
Milling Wheat Dec 2016 245.00 +1.00 +0.41%
Durum Wheat Jul 2016 302.00 unch 0.00%
Durum Wheat Oct 2016 296.00 unch 0.00%
Durum Wheat Dec 2016 298.00 unch 0.00%
Barley Jul 2016 171.50 unch 0.00%
Barley Oct 2016 171.50 unch 0.00%
Barley Dec 2016 171.50 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jul 2016 1138.25 +6.25 +0.55%
Soybeans Aug 2016 1133.5 +11.5 +1.02%
Soybeans Sep 2016 1118 +16.75 +1.52%
Soybeans Nov 2016 1105.75 +20.5 +1.89%
Soybeans Jan 2017 1101.75 +19.25 +1.78%
Soybeans Mar 2017 1073.5 +18 +1.71%
Soybean Meal Jul 2016 411.7 -2.6 -0.63%
Soybean Meal Aug 2016 401.1 +3.4 +0.85%
Soybean Meal Sep 2016 394.4 +4.4 +1.13%
Soybean Oil Jul 2016 32.51 +0.25 +0.77%
Soybean Oil Aug 2016 32.63 +0.25 +0.77%
Soybean Oil Sep 2016 32.76 +0.25 +0.77%
Corn Jul 2016 427.25 +9 +2.15%
Corn Sep 2016 429 +9.25 +2.20%
Corn Dec 2016 430 +10.25 +2.44%
Corn Mar 2017 435.75 +9.75 +2.29%
Corn May 2017 438.75 +9.5 +2.21%
Oats Jul 2016 193.75 +5.75 +3.06%
Oats Sep 2016 206.5 +5.75 +2.86%
Oats Dec 2016 219.5 +6.25 +2.93%
Oats Mar 2017 229.5 +5.75 +2.57%
Oats May 2017 229.5 +5.75 +2.57%
Wheat Jul 2016 507.5 +10.25 +2.06%
Wheat Sep 2016 517.75 +11 +2.17%
Wheat Dec 2016 535.5 +12.5 +2.39%
Wheat Mar 2017 553.25 +13.25 +2.45%
Wheat May 2017 564 +12.75 +2.31%
Minneapolis
Spring Wheat Jul 2016 546.25 +6.75 +1.25%
Spring Wheat Sep 2016 554.5 +6.75 +1.23%
Spring Wheat Dec 2016 568.75 +8.25 +1.47%
Spring Wheat Mar 2017 581.75 +9.25 +1.62%
Spring Wheat May 2017 589.75 +9.25 +1.59%
Kansas City
Hard Red Wheat Jul 2016 481.25 +7.25 +1.53%
Hard Red Wheat Sep 2016 498 +8.25 +1.68%
Hard Red Wheat Dec 2016 521.5 +8.5 +1.66%
Hard Red Wheat Mar 2017 538 +8.75 +1.65%
Hard Red Wheat May 2017 548 +8.75 +1.62%
