Canola stood up to take the beating the futures markets doled out to all the big crops Monday, hammering especially at soybeans in Chicago.
Canola fell 34 cents per bushel on both the November and January contracts, a big decline but only of the lowest point of the session.
Canola’s problems were almost entirely triggered by a big sell-off in Chicago, which was partly inspired by trepidation of some traders at the record prices of U.S. crops, but mostly sparked by big losses in almost all equity and commodity markets around the world as the reality of Spain’s economic problems came to the fore, with government bond spreads widening to crisis levels.
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Soybeans’ slump in Chicago was long and ugly through the day, beginning overnight and continuing through side by side trading. Particularly worrisome was the fact of soybeans’ ending the day at the bottom end of the range, and the range being a steady erosion of value. Canola’s losses occurred early in sympathy, but the crop rebounded early and lost only half the amount soybeans fell.
A weaker Canadian dollar helped.
Traders said the next day of trading would show whether this was an important inflection point. It was an ugly loss of 64 cents in the November contract.
Equity markets around the globe fell Sunday-Monday as continued evidence of problems in the Chinese economy appeared and as the impossibility of Spain’s fiscal situation was underlined.
Some investors appeared to also be alarmed by evidence that Greece would not be able to meet the budget control and deficit covenants it had made with Eurozone financial fixers, as if anyone with any sense at all thought there was even one iota of a chance of the bankrupt nation coming anywhere close.
Winnipeg (per tonne)
Canola Nov 12 $629.70, down $15.10 -2.34%
Canola Jan 13 $632.00, down $15.10 -2.33%
Canola Mar 13 $631.80, down $15.20 -2.35%
Canola May 13 $627.30, down $14.60 -2.27%
Western Barley Oct 12 $257.00, unchanged
Western Barley Dec 12 $262.00, unchanged
Milling Wheat Oct 12 $334.50, unchanged
Milling Wheat Dec 12 $342.00, unchanged
Milling Wheat Mar 13 $352.00, unchanged
Durum Wheat Oct 12 $339.00, unchanged
Durum Wheat Dec 12 $343.50, unchanged
Durum Wheat Mar 13 $350.10, unchanged
Barley Oct 12 $264.50, unchanged
Barley Dec 12 $269.50, unchanged
Barley Mar 13 $272.50, unchanged
Chicago (per bushel)
Soybeans (P) Aug 12 $16.9850, down 59.00 cents -3.36%
Soybeans (P) Sep 12 $16.4775, down 65.50 -3.82%
Soybeans (P) Nov 12 $16.2225, down 64.00 -3.80%
Soybeans (P) Jan 13 $16.0225, down 61.00 -3.67%
Corn (P) Sep 12 $8.1400, down 10.50 -1.27%
Corn (P) Dec 12 $7.8550, down 10.25 -1.29%
Corn (P) Mar 13 $7.7650, down 4.75 -0.61%
Oats (P) Sep 12 $3.8050, down 6.50 -1.68%
Oats (P) Dec 12 $3.8225, down 6.75 -1.74%
Oats (P) Mar 13 $3.8675, down 6.50 -1.65%
Minneapolis (per bushel)
Spring Wheat Sep 12 $10.0550, down 26.00 cents -2.52%
Spring Wheat Dec 12 $10.0500, down 23.25 -2.26%
Spring Wheat Mar 13 $10.0750, down 21.25 -2.07%
Spring Wheat May 13 $10.0325, down 16.00 -1.57%
The previous day’s best canola basis was $10 over the November contract according to ICE Futures Canada in Winnipeg.
Light crude oil nearby futures in New York dropped $3.69 at $88.14 US per barrel.
The Canadian dollar at noon was 98.31 cents US, down from 98.87 cents the previous trading day. The U.S. dollar at noon was $1.0172 Cdn.
