Canola futures bounced back from four days of losses on Friday, riding a rally in Chicago soybeans and other crops.
The sharp crop market sell off all week caused traders on Friday to look for bargains.
Also, they adjusted positions to account for the declining, but still present risk of weather. Temperatures in the Midwest are expected to rise in the later part of July but on the other hand, moisture has been good in most areas, offsetting the potential for crop stress.
November canola closed at $470, up $7.70 or 1.67 percent today.
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Over the week, the November contract fell $25.70 a tonne or just over five percent.
Prairie farmers could continue to get rain over the weekend, with significant accumulations in Saskatchewan Sunday and early next week. The system was originally expected to dump a lot of rain on Alberta but the focus of the main accumulation is shifting east into Saskatchewan where most farmers don’t need any more rain right now.
The canola crush in the week to July 6 was 174,034 tonnes, down almost five percent from the week before. But capacity used, at just over 84 percent, was still above the average for the year.
The weekly canola export number was also good, at 218,300 tonnes, up from 186,500 tonnes last week. Exports are on track to hit the Agriculture Canada target of 10 million tonnes by the end of the crop year.
Even with today’s rally, soybean futures had the biggest one-week decline in two years, falling 7.1 percent.
In addition to bargain buying, today’s rally was supported by strong weekly export demand.
The U.S. Department of Agriculture reported weekly old-crop export sales of soybeans totaled a bigger-than-expected 637,300 tonnes. New-crop export sales of 585,700 tonnes were in line with market forecasts.
Strong gains in corn today helped narrow its weekly loss to just 1.1 percent.
Wheat was supported by corn today and by short covering after Chicago wheat hit a 10-year low on Tuesday. Over the week, Chicago wheat rose 1.3 percent
MGEX spring wheat rose 1.7 percent this week and K.C. hard red winter wheat gained 1.9 percent.
The European Union trimmed its soft wheat production outlook but still expects an above average size crop. The main problem is in France and Germany where excessive rain is hurting crop conditions. The combines have just started to roll in France. Sunny weather dominated France this week, but rain is expected again next week.
The U.S. monthly jobs report was much better than expected, partly making up for a disappointing report the previous month. The strong showing lifted stock markets.
Canada’s monthly job report disappointed.
Light crude oil nearby futures in New York were rose 27 cents to US$45.41 per barrel.
The Canadian dollar at noon was US76.49 cents, down from 77.02 cents the previous trading day. The U.S. dollar at noon was C$1.3073.
The Toronto Stock Exchange composite rose 125.38 points, or 0.89 percent, at 14,259.84.
It gained 1.4 percent on the week.
The Dow Jones industrial average closed up 250.86 points, or 1.4 percent, higher at 18,146.74; the S&P 500 gained 32 points, or 1.53 percent, to 2,129.9 and the Nasdaq Composite added 79.95 points, or 1.64 percent, to 4,956.76.
For the week, the three major indexes posted gains of more than 1 percent.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 16 467.40s +5.60 +1.21%
Canola Nov 16 470.00s +7.70 +1.67%
Canola Jan 17 476.70s +7.50 +1.60%
Canola Mar 17 482.40s +7.20 +1.52%
Canola May 17 486.80s +6.80 +1.42%
Milling Wheat Jul 16 213.00s +2.00 +0.95%
Milling Wheat Oct 16 211.00s +2.00 +0.96%
Milling Wheat Dec 16 216.00s +2.00 +0.93%
Durum Wheat Jul 16 283.00s unch unch
Durum Wheat Oct 16 278.00s unch unch
Durum Wheat Dec 16 281.00s unch unch
Barley Jul 16 160.00s -6.00 -3.61%
Barley Oct 16 160.00s -6.00 -3.61%
Barley Dec 16 160.00s -6.00 -3.61%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jul 2016 1089.75 +35.50 +3.37%
Soybeans Aug 2016 1083.25 +32.75 +3.12%
Soybeans Sep 2016 1068.50 +34.50 +3.34%
Soybeans Nov 2016 1057.75 +33.00 +3.22%
Soybeans Jan 2017 1057.00 +32.25 +3.15%
Soybeans Mar 2017 1037.25 +34.00 +3.39%
Soybean Meal Jul 2016 378.70 +8.70 +2.35%
Soybean Meal Aug 2016 376.30 +9.10 +2.48%
Soybean Meal Sep 2016 373.70 +9.90 +2.72%
Soybean Oil Jul 2016 30.27 +0.54 +1.82%
Soybean Oil Aug 2016 30.35 +0.56 +1.88%
Soybean Oil Sep 2016 30.46 +0.56 +1.87%
Corn Jul 2016 349.75 +14.25 +4.25%
Corn Sep 2016 355.00 +13.25 +3.88%
Corn Dec 2016 362.50 +14.00 +4.02%
Corn Mar 2017 370.50 +13.25 +3.71%
Corn May 2017 375.75 +12.50 +3.44%
Oats Jul 2016 228.25 +0.75 +0.33%
Oats Sep 2016 195.25 +1.25 +0.64%
Oats Dec 2016 197.50 +2.00 +1.02%
Oats Mar 2017 206.00 +1.25 +0.61%
Oats May 2017 210.50 +1.25 +0.60%
Wheat Jul 2016 420.75 +8.75 +2.12%
Wheat Sep 2016 435.00 +9.50 +2.23%
Wheat Dec 2016 456.50 +10.25 +2.30%
Wheat Mar 2017 474.50 +10.50 +2.26%
Wheat May 2017 486.50 +10.50 +2.21%
Minneapolis
Spring Wheat Jul 2016 497.75 +11.75 +2.42%
Spring Wheat Sep 2016 501.00 +5.75 +1.16%
Spring Wheat Dec 2016 516.25 +4.75 +0.93%
Spring Wheat Mar 2017 530.75 +3.75 +0.71%
Spring Wheat May 2017 540.25 +3.50 +0.65%
Kansas City
Hard Red Wheat Jul 2016 405.25 +8.75 +2.21%
Hard Red Wheat Sep 2016 421.25 +9.00 +2.18%
Hard Red Wheat Dec 2016 446.00 +9.50 +2.18%
Hard Red Wheat Mar 2017 462.50 +9.75 +2.15%
Hard Red Wheat May 2017 472.75 +9.25 +2.00%
Chicago livestock futures in US¢/pound
Live Cattle (P) Aug 2016 112.22 +0.42 +0.38%
Live Cattle (P) Oct 2016 112.32 +0.09 +0.08%
Live Cattle (P) Dec 2016 113.78 +0.50 +0.44%
Feeder Cattle (P) Aug 2016 143.45 -0.18 -0.13%
Feeder Cattle (P) Sep 2016 142.50 -0.15 -0.11%
Feeder Cattle (P) Oct 2016 141.48 +0.20 +0.14%
Lean Hogs (P) Jul 2016 80.05 -1.00 -1.23%
Lean Hogs (P) Aug 2016 78.82 -1.31 -1.63%
Lean Hogs (P) Oct 2016 68.60 -0.88 -1.27%
