July canola falls $24.90 in worst week in eight months

New crop corn and soybeans saw strong gains today on concerns about a series of weather fronts that are expected to move through the Midwest next week, delaying the wrap up of the U.S. sowing campaign.

Traders were rolling out of July into the next contract and that put pressure on the nearby.

The wrapping up of seeding in most areas of the Prairies and generally good growing weather kept pressure on canola all week. Also, canola demand is dropping off and the loonie gained about 1.2 cents over the week.

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Prairie Wheat Weekly: Prices mixed

Cash prices for spring wheat and durum across the Canadian Prairies were mixed during the week ended Sept. 11.

On the week, July canola fell $24.90 per tonne and November fell $13.50. It was the worst weekly showing in eight months.

The Canadian Oilseed Producers Association said members crushed only 89,665 tonnes of canola in the week ending June 5, down about eight percent from the week before. That represented a capacity use of about 54 percent.

Rain is forecast to begin tonight and running into Saturday for much of Saskatchewan. The moisture will be welcome in central and northern areas of the province where maps show dryness this spring. There were severe thunderstorm watches in southern Alberta Friday afternoon

Oat futures posted strong gains, likely due to the slow pace of seeding in North Dakota and the southern fringe of Manitoba and Saskatchewan where soils are soggy. The expectation that wet weather in North Dakota and parts of the eastern Prairies will reduce spring wheat acreage has lessened the decline in Minneapolis futures, while Kansas and Chicago have fallen more as the U.S. winter wheat harvest approaches.

Brazil’s government trimmed projected soybean production to 81.3 million tonnes. That is smaller than Informa forecast of 82 million and USDA’s May forecast of 83 million.

A Reuters poll of analysts ahead of Wednesday’s USDA June report showed that on average traders expect world stocks of wheat at the end of 2013-14 will be 185.14 million tonnes (186.38 million last month).

Stocks of corn on average were forecast at 149.57 million (154.63 million).

Soybeans were seen at 73.51 million (74.96 million last month).

Canada’s job creation in May was 95,000, far exceeding expectations for 15,000. Most of the new jobs were in the private sector and were permanent. The unemployment rate dropped to 7.1 percent from 7.2 the month before.

U.S. job creation in the month seemed to hit the sweet spot with the number, 175,000, being large enough to maintain ideas that the economy is gradually improving, but not so large as to reinforce fears that the Federal Reserve will prematurely start scaling back its stimulus program. Wall Street reacted positively to the numbers.

Because more people entered the job market, the U.S. unemployment rate rose to 7.6 percent.

Winnipeg ICE Futures Canada dollars per tonne

Canola Jul 2013 617.40 -2.50 -0.40%

Canola Nov 2013 559.00 +2.60 +0.47%

Canola Jan 2014 560.90 +3.50 +0.63%

Canola Mar 2014 558.00 +4.10 +0.74%

Canola May 2014 553.10 +3.90 +0.71%

Milling Wheat Jul 2013 294.00 unch 0.00%

Milling Wheat Oct 2013 294.00 unch 0.00%

Milling Wheat Dec 2013 294.00 unch 0.00%

Durum Wheat Jul 2013 301.90 unch 0.00%

Durum Wheat Oct 2013 294.90 unch 0.00%

Durum Wheat Dec 2013 299.40 unch 0.00%

Barley Jul 2013 244.00 unch 0.00%

Barley Oct 2013 194.00 unch 0.00%

Barley Dec 2013 199.00 unch 0.00%

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

Chicago

Soybeans Jul 2013 1528.25 +1 +0.07%

Soybeans Aug 2013 1456.25 +6.5 +0.45%

Soybeans Sep 2013 1374 +18.75 +1.38%

Soybeans Nov 2013 1330.25 +24.5 +1.88%

Soybeans Jan 2014 1335.25 +24.5 +1.87%

Soybeans Mar 2014 1330.5 +20.25 +1.55%

Soybean Meal Jul 2013 452.5 -1.5 -0.33%

Soybean Meal Aug 2013 431.2 +0.6 +0.14%

Soybean Meal Sep 2013 413.7 +4.9 +1.20%

Soybean Oil Jul 2013 48.53 +0.37 +0.77%

Soybean Oil Aug 2013 48.55 +0.37 +0.77%

Soybean Oil Sep 2013 48.4 +0.41 +0.85%

Corn Jul 2013 666.25 +3 +0.45%

Corn Sep 2013 591.5 +13.5 +2.34%

Corn Dec 2013 558.5 +10.25 +1.87%

Corn Mar 2014 568.75 +10 +1.79%

Corn May 2014 576 +10 +1.77%

Oats Jul 2013 407.5 +9 +2.26%

Oats Sep 2013 389 +3.5 +0.91%

Oats Dec 2013 372.75 +2.25 +0.61%

Oats Mar 2014 374.5 -1 -0.27%

Oats May 2014 376.75 -1 -0.26%

Wheat Jul 2013 696.25 -1.5 -0.21%

Wheat Sep 2013 704.75 -0.75 -0.11%

Wheat Dec 2013 719.25 -1.25 -0.17%

Wheat Mar 2014 734 -1.5 -0.20%

Wheat May 2014 744 -0.5 -0.07%

Minneapolis

Spring Wheat Jul 2013 819.75 -0.5 -0.06%

Spring Wheat Sep 2013 805 unch 0.00%

Spring Wheat Dec 2013 812.25 +0.5 +0.06%

Spring Wheat Mar 2014 825.25 +2 +0.24%

Spring Wheat May 2014 832 +3 +0.36%

Kansas City

KCBT Red Wheat Jul 2013 735 -3.5 -0.47%

KCBT Red Wheat Sep 2013 742.75 -3.25 -0.44%

KCBT Red Wheat Dec 2013 760.75 -2.25 -0.29%

KCBT Red Wheat Mar 2014 774.5 -2 -0.26%

KCBT Red Wheat May 2014 782.75 -2 -0.25%

Light crude oil nearby futures in New York rose $1.27 at $96.03 US per barrel.

The Canadian dollar at noon was 97.94 cents US, up from 97.68 cents the previous trading day. The U.S. dollar at noon was $1.0210 Cdn.

In unofficial tallies —

The Toronto Stock Exchange’s S&P/TSX composite index closed down 36.03 points, or 0.29 percent, at 12,373.30. Falling gold stocks offset strength in other sectors.

The Dow Jones industrial average shot up 207.50 points, or 1.38 percent, to close at 15,248.12.

The Standard & Poor’s 500 Index gained 20.82 points, or 1.28 percent, to end at 1,643.38.

The Nasdaq Composite Index climbed 45.16 points, or 1.32 percent, to finish at 3,469.22.

For the week, the TSX fell 2.2 percent, the Dow rose 0.9 percent, the S&P 500 gained 0.8 percent and the Nasdaq advanced 0.4 percent.