July canola falls six percent on week

Canola futures closed lower Friday, capping a week that saw sharp losses on old and new crop futures.

Weaker soy oil, long liquidation and lack of buying all weighed on canola.

Although seeding on the eastern side of the Canadian Prairies is lagging the long-term averages, there was progress and that also weighed on canola.

The Canadian Oilseed Processors Association said members crushed only 115,818 tonnes of canola in the week ending May 28, down almost 24 percent from the week before. That was a capacity use of only about 65 percent compared to the average for the year to date of 81 percent.

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On the week, July canola fell $29.20 per tonne or six percent.

November fell $20.90 a tonne, or 4.3 percent.

But basis levels have narrowed, helping to limit the impact on the cash price.

For the week’s market’s analysis video visit McMillan’s Markets here.

The forecast for the weekend for much of the Prairies was fair, but southern Saskatchewan and Alberta, southern of the TransCanada Highway could get some rain

July soybeans settled lower on Friday and posted a 1.5 percent decline on the week on profit talking after the price climbed well above $15 per bushel last week.

New crop soybeans were under additional pressure Friday as the weather outlook is good for seeding and crop development in the U.S Midwest.

Soybean oil was hammered 2.3 percent lower on soy meal-soy oil spread trading.

Chicago wheat fell for the eighth straight session on favourable weather in the U.S. and perceptions that U.S. wheat is overpriced relative to Black Sea and European sources.

While the hard red winter wheat crop has severe problems, the soft red winter wheat crop in the Midwest looks good.

Soft wheat crops in France are progressing ahead of pace, with prospects for an early harvest.

The market is keeping an eye on southern Russia where there are concerns about moisture but the region did get some rain this week.

Corn fell again on good Midwest weather. Corn futures fell about nine percent in May.

Winnipeg ICE Futures Canada dollars per tonne

Canola Jul 2014 458.30 -6.00 -1.29%

Canola Nov 2014 464.90 -3.40 -0.73%

Canola Jan 2015 470.40 -3.40 -0.72%

Canola Mar 2015 472.80 -3.40 -0.71%

Canola May 2015 474.20 -3.60 -0.75%

Milling Wheat Jul 2014 214.00 -3.00 -1.38%

Milling Wheat Oct 2014 214.00 -3.00 -1.38%

Milling Wheat Dec 2014 218.00 -3.00 -1.36%

Durum Wheat Jul 2014 252.00 unch 0.00%

Durum Wheat Oct 2014 243.00 unch 0.00%

Durum Wheat Dec 2014 245.00 unch 0.00%

Barley Jul 2014 150.00 unch 0.00%

Barley Oct 2014 150.00 unch 0.00%

Barley Dec 2014 152.00 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 2014 1493.25 -5.75 -0.38%

Soybeans Aug 2014 1424.5 -8.25 -0.58%

Soybeans Sep 2014 1285.75 -10.75 -0.83%

Soybeans Nov 2014 1233.75 -10.5 -0.84%

Soybeans Jan 2015 1239.5 -10.5 -0.84%

Soybeans Mar 2015 1243.25 -10.25 -0.82%

Soybean Meal Jul 2014 500.2 +1.8 +0.36%

Soybean Meal Aug 2014 473.9 +1 +0.21%

Soybean Meal Sep 2014 436.1 -0.1 -0.02%

Soybean Oil Jul 2014 38.5 -0.91 -2.31%

Soybean Oil Aug 2014 38.61 -0.9 -2.28%

Soybean Oil Sep 2014 38.68 -0.91 -2.30%

Corn Jul 2014 465.75 -3.75 -0.80%

Corn Sep 2014 458 -5.25 -1.13%

Corn Dec 2014 457.5 -5.5 -1.19%

Corn Mar 2015 466.5 -6 -1.27%

Corn May 2015 473 -5.75 -1.20%

Oats Jul 2014 371 +9.5 +2.63%

Oats Sep 2014 352.75 +5.75 +1.66%

Oats Dec 2014 331.5 +4 +1.22%

Oats Mar 2015 326.25 +3 +0.93%

Oats May 2015 321.5 +2.25 +0.70%

Wheat Jul 2014 627.25 -5.25 -0.83%

Wheat Sep 2014 639.75 -4.75 -0.74%

Wheat Dec 2014 660.5 -3.25 -0.49%

Wheat Mar 2015 677.25 -2.5 -0.37%

Wheat May 2015 686 -2.25 -0.33%

Minneapolis

Spring Wheat Jul 2014 706.5 -8 -1.12%

Spring Wheat Sep 2014 715 -7.5 -1.04%

Spring Wheat Dec 2014 725 -6.75 -0.92%

Spring Wheat Mar 2015 732 -7.25 -0.98%

Spring Wheat May 2015 735 -7.75 -1.04%

Kansas City

KC HRW Wheat Jul 2014 723 -7.5 -1.03%

KC HRW Wheat Sep 2014 730.75 -7.5 -1.02%

KC HRW Wheat Dec 2014 742 -8.25 -1.10%

KC HRW Wheat Mar 2015 748 -7 -0.93%

KC HRW Wheat May 2015 745.75 -8 -1.06%

Light crude oil nearby futures in New York dropped 87 cents at $102.71 US per barrel.

The Canadian dollar at noon was 92.02 cents US, down from 92.28 cents the previous trading day. The U.S. dollar at noon was $1.0867 Cdn.

Canada’s economy grew 1.2 percent, annualized, in the first quarter, down from 2.7 percent in the final quarter of last year, said Statistics Canada. The market expected 1.8 percent.

The U.S. economy also performed below expectations in the first quarter, but many economists expect a rebound in the second quarter.

In early unofficial tallies —

The Toronto Stock Exchange’s S&P/TSX composite index closed up 10.70 points, or 0.07 percent, at 14,599.65.

The Dow Jones industrial average rose 18.43 points or 0.11 percent, to 16,717.17.

The S&P 500 gained 3.54 points or 0.18 percent, to 1,923.57.

The Nasdaq Composite fell 5.33 points or 0.13 percent, to 4,242.62.

Friday’s gain lifted the Dow above its previous record close of 16,715.44 set on May 13.

For the week, the TSX composite fell 0.7 percent, the Dow rose 0.7 percent, the S&P 500 gained 1.2 percent, and the Nasdaq climbed 1.4 percent.