The sharply stronger Canadian dollar, that hit a two-year high, weighed down canola on Friday.
Hedge selling, as grain companies offset buying of new crop from the combine, also weighed on canola.
The dollar rose on ideas that the Bank of Canada could raise interest rates at its meeting next week. Expectations for a hike this month increased following news Thursday that the economy in the second quarter grew at the fastest pace in nearly six years.
Losses in canola were limited by stronger soybeans and soy oil, which rose on ideas that limits on Argentine soy biodiesel imports to the U.S. will lead to more demand for American soy oil to make into the fuel.
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U.S. grains: Soybean futures jump on hopes for US export demand
Chicago Board of Trade soybean futures jumped on hopes for U.S. export demand on Wednesday, while corn futures rose for a third day to extend a recovery from contract lows, analysts said.
Winter wheat futures rose on technical buying but Minneapolis spring wheat fell.
Corn was down on new private analyst forecasts of U.S. production.
INTL FCStone raised its estimate of corn yield to 166.9 bu. per acre and Informa Economics raised its to 169.2 bu.
Both were still lower than the USDA’s current forecast of 169.5 bu. but the fact that they raised their estimates from last month was seen as bearish.
The USDA updates its forecast on Sept. 12.
For the week, November canola fell $3.60 per tonne.
The weather in western Canada should remain conducive to harvest progress with almost no rain in the forecast for the next seven days.
The Alberta crop report said that as of Aug. 29 harvest was deemed to be 18 percent complete in the province, largely on advances in the south and central regions.
An additional 12 percent of crops are in the swath. Regional harvest progress is ahead of the five-year averages in the south and central regions but lagging in the remainder of the province.
CRUSH
The crush so far this crop year stands at little less than 600,000 tonnes, a little behind last year’s pace, and capacity use in the past week was only at 65 percent.
There is little canola in the commercial system.
The Canadian Grain Commission said supply in commercial hands is the lowest in four years at only 511,500 tonnes.
Weekly exports were only 47,200 tonnes, down from 96,100 tonnes the week before. For the first four weeks of the crop year, canola exports are at 508,600 tonnes, a little ahead of last year at the same time.
Farmer deliveries and exports will start to pick up once more of the crop is harvested.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were up six cents US$47.29 per barrel.
In the afternoon, the Canadian dollar was trading around US80.71 cents, up from 80.12 cents the previous trading day. The U.S. dollar was C$1.2390.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 20.27 points, or 0.13 percent, at 15,191.60.
The Dow Jones Industrial Average rose 39.46 points, or 0.18 percent, to end at 21,987.56, the S&P 500 gained 4.9 points, or 0.20 percent, to 2,476.55 and the Nasdaq Composite added 6.67 points, or 0.1 percent, to 6,435.33.
The TSX rose 0.9 on the week, the Dow gained 0.8 percent, the S&P rose 1.3 percent and the Nasdaq rose 2.7 percent.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 17 497.30s -2.20 -0.44%
Canola Jan 18 503.80s -1.30 -0.26%
Canola Mar 18 510.20s -0.80 -0.16%
Canola May 18 512.70s -1.10 -0.21%
Canola Jul 18 513.80s -1.20 -0.23%
Milling Wheat Oct 17 232.00s -6.00 -2.52%
Milling Wheat Dec 17 236.00s -6.00 -2.48%
Milling Wheat Mar 18 245.00s -6.00 -2.39%
Durum Wheat Oct 17 295.00s -1.00 -0.34%
Durum Wheat Dec 17 297.00s -1.00 -0.34%
Durum Wheat Mar 18 299.00s unch unch
Barley Oct 17 145.00s unch unch
Barley Dec 17 148.00s unch unch
Barley Mar 18 151.00s unch unch
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.
Chicago
Soybeans Sep 17 942-0s +5-6 +0.61%
Soybeans Nov 17 949-4s +4-2 +0.45%
Soybeans Jan 18 959-2s +4-4 +0.47%
Soybeans Mar 18 968-4s +4-2 +0.44%
Soybeans May 18 977-4s +4-6 +0.49%
Soybean Meal Sep 17 293.2s -1.1 -0.37%
Soybean Meal Oct 17 295.5s -1.0 -0.34%
Soybean Meal Dec 17 298.8s -0.7 -0.23%
Soybean Oil Sep 17 35.31s +0.60 +1.73%
Soybean Oil Oct 17 35.42s +0.61 +1.75%
Soybean Oil Dec 17 35.67s +0.61 +1.74%
Corn Sep 17 340-0s -2-2 -0.66%
Corn Dec 17 355-2s -2-4 -0.70%
Corn Mar 18 367-6s -2-6 -0.74%
Corn May 18 375-2s -2-4 -0.66%
Corn Jul 18 381-6s -2-2 -0.59%
Oats Sep 17 223-4s unch unch
Oats Dec 17 236-2s -0-6 -0.32%
Oats Mar 18 243-0s -1-2 -0.51%
Oats May 18 240-6s -1-0 -0.41%
Oats Jul 18 236-6s +0-2 +0.11%
Wheat Sep 17 420-4s +10-2 +2.50%
Wheat Dec 17 438-6s +4-2 +0.98%
Wheat Mar 18 460-0s +3-0 +0.66%
Wheat May 18 473-0s +2-4 +0.53%
Wheat Jul 18 485-6s +2-2 +0.47%
Minneapolis
Spring Wheat Sep 17 612-0s -6-4 -1.05%
Spring Wheat Dec 17 631-6s -8-6 -1.37%
Spring Wheat Mar 18 643-0s -8-0 -1.23%
Spring Wheat May 18 641-4s -6-4 -1.00%
Spring Wheat Jul 18 637-6s -5-2 -0.82%
Kansas City
Hard Red Wheat Sep 17 412-4s +3-6 +0.92%
Hard Red Wheat Dec 17 438-6s +2-4 +0.57%
Hard Red Wheat Mar 18 456-2s +2-2 +0.50%
Hard Red Wheat May 18 470-0s +2-2 +0.48%
Hard Red Wheat Jul 18 487-0s +2-2 +0.46%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Oct 17 105.150s -0.250 -0.24%
Live Cattle Dec 17 109.475s +0.375 +0.34%
Live Cattle Feb 18 112.925s +0.575 +0.51%
Feeder Cattle Sep 17 142.725s +0.150 +0.11%
Feeder Cattle Oct 17 143.550s +0.250 +0.17%
Feeder Cattle Nov 17 143.950s +0.275 +0.19%
Lean Hogs Oct 17 61.450s +0.050 +0.08%
Lean Hogs Dec 17 58.050s +0.025 +0.04%
Lean Hogs Feb 18 62.725s +0.075 +0.12%
