July and November canola closed above $500 per tonne on Friday, the first time they hit that level in about a year.
A year ago, canola was supported by excess rain in the eastern Prairies. But this year the focus is on dry weather in the western Prairies.
While thunderstorms are tracking across the western Prairies this afternoon and there is potential for storms tonight, the overall precipitation forecast for Friday-Saturday declined from yesterday’s outlook.
Long-term forecasts are mostly dry for the coming two weeks.
The driest areas are around the Alberta-Saskatchewan border. Manitoba mostly has good moisture.
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Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
With the reseeding and slow development, a fair amount of flowering canola could encounter July heat.
A weaker loonie also supported canola on Friday.
July canola rose $8.70, or 1.8 percent, to close at $503.70 per tonne.
Most-active November canola added $8.80 to $502.70 per tonne.
Over the week, July rose $18.60 or 3.6 percent. November rose $19.50 or four percent.
The weekly Saskatchewan crop report gives a rating to crop conditions every two weeks.
This week it pegged canola at 47 percent good to excellent, 45 percent fair and 17 percent poor to very poor.
That was a slight improvement from the June 4 report but well down from last year at this time.
In 2014 Saskatchewan canola was 79 percent good to excellent, 20 percent fair and one percent poor to very poor.
The Alberta crop report June 16 said only 32 percent of canola in that province was rated good to excellent
Forecasts for canola crops in the European Union, Ukraine and Australia are also smaller than last year’s production.
While there are several factors supporting canola values, soybean fell on Friday on profit taking after the rally this week on delayed seeding in the U.S. because of excess moisture. Soybeans rose 3.3 percent on the week.
Wheat futures mostly closed higher today on short covering, but the trade expected the crop would be under pressure next week as drier weather in the U.S. southern Plains should allow the pace of the hard red winter wheat harvest to increase.
The forecasts for wheat production in Europe are being trimmed a little because of dry weather, but overall production should be close to the average, after a bumper harvest last year.
Over the week, wheat contracts fell about three percent.
Corn fell on Friday, as a forecast for warmer, drier weather in the Midwest should encourage growth, as soil moisture is excellent.
For the week, corn was close to unchanged, rising just 0.25 cent.
The line up of ships in Vancouver in early June fell to 14, according to the Grain Monitoring Program report, but the latest report shows the line up is expected to be 21 this coming week, indicating improved export demand for Canadian grain.
But domestic demand is off as crush margins decline.
The Canadian Oilseed Processors Association said members crushed only 130,383 tonnes in the week to June 17, down 12 percent from the week before and only about 65 percent of the crush capacity.
Light crude oil nearby futures in New York were down 84 cents to US$59.61 per barrel.
The Canadian dollar at noon was US81.44 cents, down from 81.91 cents the previous trading day. The U.S. dollar at noon was C$1.2279.
The Toronto Stock Exchange’s S&P/TSX composite index dropped 117.52 points, or 0.80 percent, on Friday to end at 14,653.12. For the week it fell 0.6 percent.
The Dow Jones industrial average fell 101.56 points, or 0.56 percent, to 18,014.28, the S&P 500 lost 11.48 points, or 0.54 percent, to 2,109.76 and the Nasdaq Composite dropped 15.95 points, or 0.31 percent, to 5,117.00.
For the week, the Dow gained 0.6 percent, the S&P added 0.7 percent and the Nasdaq, which had closed at a record high on Thursday, rose 1.3 percent.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2015 503.70 +8.70 +1.76%
Canola Nov 2015 502.70 +8.80 +1.78%
Canola Jan 2016 498.60 +8.00 +1.63%
Canola Mar 2016 495.20 +7.80 +1.60%
Canola May 2016 491.60 +7.70 +1.59%
Milling Wheat Jul 2015 209.00 +1.00 +0.48%
Milling Wheat Oct 2015 214.00 +1.00 +0.47%
Milling Wheat Dec 2015 214.00 +1.00 +0.47%
Durum Wheat Jul 2015 298.00 unch 0.00%
Durum Wheat Oct 2015 298.00 unch 0.00%
Barley Jul 2015 207.00 -3.00 -1.43%
Barley Oct 2015 202.00 -3.00 -1.46%
Barley Dec 2015 207.00 -3.00 -1.43%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jul 2015 971.5 -6.25 -0.64%
Soybeans Aug 2015 955.25 -5.25 -0.55%
Soybeans Sep 2015 942 -3.5 -0.37%
Soybeans Nov 2015 939.75 -2.5 -0.27%
Soybeans Jan 2016 945.5 -2.5 -0.26%
Soybeans Mar 2016 947.25 -2.25 -0.24%
Soybean Meal Jul 2015 323.1 -3.5 -1.07%
Soybean Meal Aug 2015 316.8 -2.4 -0.75%
Soybean Meal Sep 2015 311.6 -2.1 -0.67%
Soybean Oil Jul 2015 32.55 +0.3 +0.93%
Soybean Oil Aug 2015 32.63 +0.29 +0.90%
Soybean Oil Sep 2015 32.71 +0.3 +0.93%
Corn Jul 2015 353.25 -4.75 -1.33%
Corn Sep 2015 358.75 -4.75 -1.31%
Corn Dec 2015 368.75 -4.5 -1.21%
Corn Mar 2016 379.75 -4.75 -1.24%
Corn May 2016 387 -4.75 -1.21%
Oats Jul 2015 244 -6.75 -2.69%
Oats Sep 2015 251.75 -7 -2.71%
Oats Dec 2015 258.25 -6.75 -2.55%
Oats Mar 2016 264 -6.75 -2.49%
Oats May 2016 270.75 -6.75 -2.43%
Wheat Jul 2015 488.5 +0.5 +0.10%
Wheat Sep 2015 492.5 -0.75 -0.15%
Wheat Mar 2016 519.75 -1.5 -0.29%
Wheat May 2016 527.75 -1.75 -0.33%
Minneapolis Hard Red Spring
Wheat Jul 2015 543 +3.25 +0.60%
Wheat Sep 2015 553.75 +3.25 +0.59%
Wheat Dec 2015 567.25 +3.5 +0.62%
Wheat Mar 2016 581 +3.5 +0.61%
Wheat May 2016 589.5 +3.25 +0.55%
Kansas City Hard Red Winter
Wheat Jul 2015 503.25 +5 +1.00%
Wheat Sep 2015 513 +5.25 +1.03%
Wheat Dec 2015 532 +5.25 +1.00%
Wheat Mar 2016 546 +5.5 +1.02%
Wheat May 2016 555 +5.5 +1.00%
