Canola futures again beat the general downward trend in crops markets on Friday thanks to the weak Canadian dollar and a bounce back in soy oil.
March canola today closed at $453.40 a tonne, up $4.30 and May closed at $449.40, up $3.30.
Today’s gain lessened the damage for the week.
Between the close last Friday and this Friday, March canola fell $8.10 a tonne and May fell $6.20.
The week’s decline in March canola equaled 1.7 percent.
The decline in March soybeans was 1.2 percent and the fall in March soy oil was five percent.
Read Also
Russia’s new-crop grain hits market as top producers report first harvest data
The first grain from Russia’s new crop has arrived on the market, traders and analysts said on Monday, as top producing regions reported early harvesting results, with an expected drop in the Rostov region and a good harvest in Stavropol.
The Canadian dollar fell below US79 cents following a report that showed Canada’s gross domestic product fell 0.2 percent in November.
Investment bank JP Morgan has forcast that the loonie could fall to 77 cents if the Bank of Canada cuts interest rates again, as many analysts assume.
The Canadian Oilseed Processors Association said members crushed 149,771 tonnes of canola in the week ending Jan. 28, down 2.2 percent.
That represented an almost 82 percent capacity use, slightly ahead of the rate so far this year.
The total crush this crop year is running about five percent of last year at this point.
Soybean futures fell on speculator fund selling and prospects for a record large South American harvest.
Soy oil rose on a technical bounce after hitting a six year low on Thursday as the trade fretted that a government rule change will allow more biodiesel from Argentina into the U.S.
Also Pakistan importers bought about 60,000 tonnes of soy oil, likely from the United States, European traders told Reuters.
Open interest in soy oil futures have risen and that is a sign that investors are making short bets, or taking positions with the expectation that prices will fall.
Wheat futures fell, with Chicago dropping below $5 for the first time in three months.
Wheat was under pressure because of ample global supplies and the strong U.S. dollar that makes U.S. wheat expensive on world markets.
Also the forecast is for rain and snow across the U.S. southern Plains and Mid West this weekend that should alleviate dry soils in the Plains and protect Midwest wheat against cold temperatures next week.
Monthly winter wheat condition ratings from the USDA will come out on Monday.
The government of Argentina today said it would not issue export permits to companies that pay growers significantly less than the international price.
The government restricts wheat exports to ensure an ample supply for Argentina’s population and keep domestic flour prices low.
Corn futures again fell on ample supply and expectations of a good harvest in South America.
Sales of U.S. grain and other agricultural products in containers are suffering because of a months long work slowdown at Los Angeles and Long Beach and other U.S. west coast ports.
Agrimoney.com reported that Allendale forcasts that new crop soybeans by November will fall to $8.07 a bushel as the new American harvest hits an already over supplied market.
It thinks corn futures could fall below $3.50 in early summer but could then see a rally to close to $4.60.
Light crude oil nearby futures in New York were up $3.71 to US$48.24 per barrel.
The Canadian dollar at noon was US78.63 cents, down from US79.09 cents the previous trading day. The U.S. dollar at noon was C$1.2717.
U.S. GDP rose less than expected at an annualized pace of 2.6 percent in the fourth quarter after the heady increase of five percent in the third quarter.
The Toronto Stock Exchange composite rose 32.53 points or 0.22 percent to close at 14,669.81.
The Dow Jones industrial average fell 247.22 points, or 1.42 percent, to 17,169.63, the S&P 500 lost 26.07 points, or 1.29 percent, to 1,995.18 and the Nasdaq Composite dropped 48.17 points, or 1.03 percent, to 4,635.24.
For the week, the TSX fell 0.7 percent, the Dow was down 2.8 percent, the S&P was down 2.8 percent and the Nasdaq down 2.6 percent.
For the month, the Dow was down 3.6 percent, the S&P fell 3.1 percent and the Nasdaq was off 2.1 percent.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2015 453.40 +4.30 +0.96%
Canola May 2015 449.40 +3.30 +0.74%
Canola Jul 2015 447.80 +4.00 +0.90%
Canola Nov 2015 435.20 +3.80 +0.88%
Canola Jan 2016 436.80 +3.20 +0.74%
Milling Wheat Mar 2015 212.00 -1.00 -0.47%
Milling Wheat May 2015 215.00 -1.00 -0.46%
Milling Wheat Jul 2015 218.00 -1.00 -0.46%
Durum Wheat Mar 2015 358.00 unch 0.00%
Durum Wheat May 2015 348.00 unch 0.00%
Durum Wheat Jul 2015 338.00 unch 0.00%
Barley Mar 2015 195.00 unch 0.00%
Barley May 2015 197.00 unch 0.00%
Barley Jul 2015 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 Mar 2015 961 -7.25 -0.75%
Soybeans May 2015 967.75 -7 -0.72%
Soybeans Jul 2015 972.75 -7 -0.71%
Soybeans Aug 2015 972 -6.75 -0.69%
Soybeans Sep 2015 956.75 -6.25 -0.65%
Soybeans Nov 2015 945.75 -5.5 -0.58%
Soybean Meal Mar 2015 329.9 -8 -2.37%
Soybean Meal May 2015 324 -6.6 -2.00%
Soybean Meal Jul 2015 321.8 -6.2 -1.89%
Soybean Oil Mar 2015 30 +0.46 +1.56%
Soybean Oil May 2015 30.24 +0.46 +1.54%
Soybean Oil Jul 2015 30.46 +0.45 +1.50%
Corn Mar 2015 370 -1.5 -0.40%
Corn May 2015 378.5 -1.5 -0.39%
Corn Jul 2015 386 -1.75 -0.45%
Corn Sep 2015 393 -1.5 -0.38%
Corn Dec 2015 400.75 -2 -0.50%
Oats Mar 2015 275.5 -7 -2.48%
Oats May 2015 280 -6.75 -2.35%
Oats Jul 2015 284.5 -8 -2.74%
Oats Sep 2015 290.5 -8 -2.68%
Oats Dec 2015 290.5 -5.75 -1.94%
Wheat Mar 2015 502.75 -5 -0.98%
Wheat May 2015 506.75 -5.75 -1.12%
Wheat Jul 2015 511.5 -5.5 -1.06%
Wheat Sep 2015 519.75 -5.5 -1.05%
Wheat Dec 2015 532.25 -5.5 -1.02%
Minneapolis
Spring Wheat Mar 2015 556.75 -2.5 -0.45%
Spring Wheat May 2015 561.25 -4.25 -0.75%
Spring Wheat Jul 2015 569 -4 -0.70%
Spring Wheat Sep 2015 577 -4.5 -0.77%
Spring Wheat Dec 2015 587.75 -4.25 -0.72%
Kansas City
Hard Red Wheat Mar 2015 540.25 -3.75 -0.69%
Hard Red Wheat May 2015 542.75 -6 -1.09%
Hard Red Wheat Jul 2015 546.25 -7.25 -1.31%
Hard Red Wheat Sep 2015 557.75 -7 -1.24%
Hard Red Wheat Dec 2015 572.25 -6.25 -1.08%
Also bearish, storms were forecast to bring moisture to the U.S. Plains wheat belt this weekend, while snowfall expected in the Midwest should insulate dormant crops from a cold spell next week, the Commodity Weather Group said.
