Canola futures closed the week on an up note, helping to pull the contracts almost even with where they were the previous Friday.
Canola’s strength today came from a weaker loonie and concern about weekend rain on the Prairies slowing seeding pace.
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Also soybean oil rose more than one percent. Palm oil production is not recovering as fast as expected. Also, palm oil demand for Muslim Ramadan, including the wrap up of the religious holiday on Eid al-Fitr June 25, is strong.
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U.S. livestock: Cattle futures set record highs on scarce supplies
Chicago Mercantile Exchange live cattle and feeder cattle futures set record highs on Wednesday as cash prices stayed strong, along with consumers’ demand for beef, brokers said.
Wheat dipped slightly, caught between expectations for large world production but concern that the U.S. hard red winter wheat crop might yet show the negative effects of the recent snow and excess moisture.
WEEKLY TREND
July canola closed at $523.90, down $1.90 on the week.
November closed at $504.20, down only 60 cents on the week.
Although available canola stocks are winding down and are expected to be tight by the end of the crop year, the crush and export pace is still fairly good.
CANOLA CRUSH
Canola crush totaled 170,057 tonnes, up 16 percent from week before. That represented almost 80 percent of capacity compared to the average to date of almost 90 percent.
Total to date is 7.22 million, up 14.3 percent from 6.32 million last year at this point.
EXPORTS
The Canadian Grain Commission said that 286,600 tonnes of canola were shipped in week 40, down from 328,100 the week before.
The total to date is 8.63 million, up 10.1 percent from 7.84 million last year at the same point.
Wheat exports were 303,000 tonnes, down from 330,300 tonnes the week before.
The total to date for wheat is 10.56 million tonnes down 17.3 percent from 12.77 million last year.
The overall grain exports for the week were a respectable 832,800 tonnes, down from 856,500 the week before.
PRIVATE FORECAST
Informa Economics on Friday raised its projection of U.S. 2017 soybean plantings to 89.662 million acres, slightly above the U.S. Department of Agriculture’s March 31 figure of 89.5 million acres, the private analytics firm said in a note to clients.
Informa forecast U.S. 2017 soybean production at 4.270 billion bushels, based on an average yield of 48 bushels per acre and harvested area of 89.017 million acres.
For corn, the firm estimated U.S. 2017 plantings of 89.716 million acres, down from its mid-March forecast of 90.8 million and below the USDA’s figure of 90 million acres. It sees 2017 corn production at 14.060 billion bushels, based on an average yield of 170.6 bpa and harvested area of 82.395 million acres.
EUROPE, BLACK SEA
Recent rain in France has helped that crop after dry weather and spring frosts earlier might have limited yield prospects, particularly in canola.
A lack of rain in north-central Ukraine has exacerbated short-term drought. It had 25-50 percent of normal rainfall over the past 60 days. Soil moisture in short supply for corn planting and emergence.
OUTSIDE MARKETS
In the afternoon the Canadian dollar was trading around US72.927 cents, down from 73.018 cents on Tuesday. One U.S. dollar equals C$1.371.
The Toronto Stock Exchange’s S&P/TSX composite index finished 12.67 points lower, or 0.1 percent, to end at 15,537.88.
Poor quarterly profits at major U.S. department store chains weighed on U.S. markets.
The Dow Jones Industrial Average declined 0.11 percent to end at 20,896.61 points and the S&P 500 lost 0.15 percent to 2,390.9.
The Nasdaq Composite added 0.09 percent to 6,121.23.
For the week, the TSX composite fell 0.3 percent, the Dow fell 0.5 percent, the S&P 500 lost 0.4 percent and the Nasdaq rose 0.3 percent.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 17 523.90 +4.60 +0.89%
Canola Nov 17 504.20 +1.80 +0.36%
Canola Jan 18 509.50 +2.10 +0.41%
Canola Mar 18 513.70 +1.90 +0.37%
Canola May 18 516.20 +2.20 +0.43%
Milling Wheat Jul 17 238.00 unch unch
Milling Wheat Oct 17 239.00 unch unch
Milling Wheat Dec 17 242.00 unch unch
Durum Wheat Jul 17 273.00 unch unch
Durum Wheat Oct 17 267.00 unch unch
Durum Wheat Dec 17 267.00 unch unch
Barley Jul 17 138.00 unch unch
Barley Oct 17 140.00 unch unch
Barley Dec 17 140.00 unch unch
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Soybeans May 2017 954.00 -2.00 -0.21%
Soybeans Jul 2017 963.00 -3.25 -0.34%
Soybeans Aug 2017 964.75 -3.25 -0.34%
Soybeans Sep 2017 961.50 -3.75 -0.39%
Soybeans Nov 2017 959.75 -4.25 -0.44%
Soybeans Jan 2018 967.00 -4.25 -0.44%
Soybean Meal May 2017 309.70 -1.40 -0.45%
Soybean Meal Jul 2017 313.30 -1.60 -0.51%
Soybean Meal Aug 2017 314.00 -1.70 -0.54%
Soybean Oil May 2017 32.63 unch 0.00%
Soybean Oil Jul 2017 32.84 +0.35 +1.08%
Soybean Oil Aug 2017 32.92 +0.34 +1.04%
Corn May 2017 361.75 +1.25 +0.35%
Corn Jul 2017 371.00 +1.75 +0.47%
Corn Sep 2017 379.00 +1.75 +0.46%
Corn Dec 2017 388.75 +1.50 +0.39%
Corn Mar 2018 398.25 +1.50 +0.38%
Oats May 2017 247.00 unch 0.00%
Oats Jul 2017 241.00 -5.25 -2.13%
Oats Sep 2017 228.00 -3.00 -1.30%
Oats Dec 2017 226.75 -0.75 -0.33%
Oats Mar 2018 228.50 unch 0.00%
Wheat May 2017 425.00 -1.00 -0.23%
Wheat Jul 2017 432.75 -1.00 -0.23%
Wheat Sep 2017 446.75 -1.25 -0.28%
Wheat Dec 2017 466.25 -1.00 -0.21%
Wheat Mar 2018 483.75 -1.25 -0.26%
Spring Wheat May 2017 537.00 -2.00 -0.37%
Spring Wheat Sep 2017 553.50 -2.00 -0.36%
Spring Wheat Dec 2017 561.75 -2.00 -0.35%
Spring Wheat Mar 2018 570.50 -2.00 -0.35%
Hard Red Wheat May 2017 429.00 -0.75 -0.17%
Hard Red Wheat Jul 2017 439.25 -1.50 -0.34%
Hard Red Wheat Sep 2017 456.00 -1.75 -0.38%
Hard Red Wheat Dec 2017 479.00 -1.50 -0.31%
Hard Red Wheat Mar 2018 493.00 -1.50 -0.30%
Live Cattle (P) Jun 2017 125.18 +1.26 +1.02%
Live Cattle (P) Aug 2017 121.78 +2.11 +1.76%
Live Cattle (P) Oct 2017 118.12 +2.47 +2.14%
Feeder Cattle (P) May 2017 144.55 +2.18 +1.53%
Feeder Cattle (P) Aug 2017 151.83 +4.51 +3.06%
Feeder Cattle (P) Sep 2017 151.92 +4.49 +3.05%
Lean Hogs (P) May 2017 71.90 +0.38 +0.53%
Lean Hogs (P) Jun 2017 77.95 +0.90 +1.17%
Lean Hogs (P) Jul 2017 78.60 +1.52 +1.97%
Chicago livestock futures in US¢/pound (rounded to two decimal places)
