Canola is up about a half of a percent on Friday morning while U.S. crop futures are generally up about one percent as the U.S. drought continues to dominate the trade.
The upside in canola is limited by generally good crop conditions. The recent heat might have limited yields in some pockets but overall the crop is developing well and analysts are penciling in a record production of about 16 million tonnes or more.
Thunderstorms are a regular feature of daily Prairie weather and more significant rain could come on Monday and Tuesday.
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At about 10 a.m. CST November canola is trading at $625 per tonne, up $3.50.
U.S. farmers and traders are riveted on weather forecasts.
Rain is expected in some areas of the Midwest over the next several days but amounts will likely be inadequate to make a significant difference to the dismal production outlook.
• A German traders told Reuters that concerns are growing about crops in the Black Sea region. The situation in Kazakhstan also appears bad and the trader speculated it might be out of the wheat export market this year.
Excess rain in west Europe threatens quality as the crop moves towards harvest.
• In Australia, cold weather is slowing wheat crop development.
• The weekly canola crush in Canada is back to the average pace after a few slow weeks. In the week ending July 11 members of the Canadian Oilseed Processors Association crushed 143,307 tonnes of canola, up 7.5 percent from the week before.
The crush so far this year is up about 12 percent over the pace at this time last year.
• China’s economic growth rate in the second quarter slowed to 7.6 percent, the slowest in more than three years. But that was close to expectations. The result is a “risk on” day with the U.S. dollar down and increased appetite for stocks and commodities.
• The Bank of Canada noon rate for the Canadian dollar is 98.51 cents US, up from 97.90 the day before.
The U.S. dollar is $1.0151 Cdn.
