March canola gains $2 on week, awaits stocks report Tuesday

A late session rally pushed canola futures higher Friday, resulting in a $2 per tonne gain on the week in the March contract and a $2.10 gain in the new crop November contract.

There was no new significant market moving news so a lot of the trade Friday in canola was month end short covering and adjusting ahead of the Statistics Canada Dec. 31 stocks report due Tuesday Feb. 4.

On the day, March canola settled at $430.20, up $4.20 and November closed at $464.40, up $3.80.

The loonie at noon was up about 0.4 cent US, but was still below 90 cents.

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Support today came from rising old crop soybeans, lifted by strong U.S. exports of soybeans and soy meal this year.

Friday’s bull-spreading rally in soybeans saw March futures’ premium to May futures hit 14.5 cents, indicating immediate demand for the beans, Reuters reported.

Gains in deferred months were limited by the bumper South American soybean crop, which is moving closer toward harvest. Indeed harvest has begun in parts of Brazil and the first shipments of new crop were loaded at port this week.

So far there has been little shifting of demand to Brazil from the U.S. but the threat hangs over the market.

Reuters reported farmers in Brazil’s top-soybean-producing state Mato Grosso are reporting soy harvest yields well above what they had expected, which if the trend continues, will result in a record crop and make Brazil the world’s top producer of the oilseed.

Soy oil rose today on short covering.

Winters snows storms this weekend and in the middle of next week are expected to disrupt U.S. grain movement. However, the snow will be welcome in dry areas of the southern and central U.S. Plains, which received little moisture this winter.

Winter weather was also an issue in the Black Sea area. Russia halted grains exports from the Black Sea port of Novorossiisk today due to windy weather while Ukraine’s national railway has imposed temporary restrictions on cargo deliveries to the Black Sea port of Odessa due to snowdrifts, Reuters reported.

Corn ended higher with spill over support from the good weekly U.S. export numbers reported on Thursday.

Corn rose 2.8 percent in January, rebounding slightly from the steep decline last fall.

Stock markets were lower on continuing concern about losses in emerging markets and on weak quarterly results from Amazon, which fell 11 percent today, and toy maker Mattel Inc., which fell 13 percent.

Winnipeg ICE Futures Canada dollars per tonne

Canola Mar 2014 430.20 +4.20 +0.99%

Canola May 2014 440.40 +4.50 +1.03%

Canola Jul 2014 449.00 +4.20 +0.94%

Canola Nov 2014 464.40 +3.80 +0.83%

Canola Jan 2015 469.90 +3.80 +0.82%

Milling Wheat Mar 2014 179.00 +3.00 +1.70%

Milling Wheat May 2014 182.00 +1.00 +0.55%

Milling Wheat Jul 2014 185.00 +1.00 +0.54%

Durum Wheat Mar 2014 245.00 unch 0.00%

Durum Wheat May 2014 249.00 unch 0.00%

Durum Wheat Jul 2014 250.00 unch 0.00%

Barley Mar 2014 126.50 unch 0.00%

Barley May 2014 128.50 unch 0.00%

Barley Jul 2014 128.50 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 2014 1282.75 +7.75 +0.61%

Soybeans May 2014 1268.5 +7.5 +0.59%

Soybeans Jul 2014 1252 +6 +0.48%

Soybeans Aug 2014 1210.5 +5 +0.41%

Soybeans Sep 2014 1144.5 +5.5 +0.48%

Soybeans Nov 2014 1104.5 +7.25 +0.66%

Soybean Meal Mar 2014 426.1 +0.9 +0.21%

Soybean Meal May 2014 411.1 +0.5 +0.12%

Soybean Meal Jul 2014 400.5 -0.3 -0.07%

Soybean Oil Mar 2014 37.64 +0.57 +1.54%

Soybean Oil May 2014 37.93 +0.55 +1.47%

Soybean Oil Jul 2014 38.25 +0.55 +1.46%

Corn Mar 2014 434 +0.5 +0.12%

Corn May 2014 439.5 unch 0.00%

Corn Jul 2014 444 +0.5 +0.11%

Corn Sep 2014 446.25 +0.25 +0.06%

Corn Dec 2014 450 -0.25 -0.06%

Oats Mar 2014 405.75 -6.25 -1.52%

Oats May 2014 361.25 -4.25 -1.16%

Oats Jul 2014 331.75 -9 -2.64%

Oats Sep 2014 308 unch 0.00%

Oats Dec 2014 292 +0.25 +0.09%

Wheat Mar 2014 555.75 +2.25 +0.41%

Wheat May 2014 558.25 +2 +0.36%

Wheat Jul 2014 561.5 +1.75 +0.31%

Wheat Sep 2014 570 +1.75 +0.31%

Wheat Dec 2014 582.75 +2.25 +0.39%

Minneapolis

Spring Wheat Mar 2014 604 +6.75 +1.13%

Spring Wheat May 2014 599.25 +3.5 +0.59%

Spring Wheat Jul 2014 607.5 +3 +0.50%

Spring Wheat Sep 2014 616 +2.5 +0.41%

Spring Wheat Dec 2014 628.75 +3.25 +0.52%

Kansas City

KCBT Red Wheat Mar 2014 615.5 +4.75 +0.78%

KCBT Red Wheat May 2014 611 +3.75 +0.62%

KCBT Red Wheat Jul 2014 602.75 +2.5 +0.42%

KCBT Red Wheat Sep 2014 612.5 +2.5 +0.41%

KCBT Red Wheat Dec 2014 625.75 +2.75 +0.44%

Light crude oil nearby futures in New York dropped 74 cents at $97.49 US per barrel.

The Canadian dollar at noon was 89.94 cents US, up from 89.52 cents the previous trading day. The U.S. dollar at noon was $1.1119 Cdn.

The Toronto Stock Exchange’s S&P/TSX composite index closed down 40.34 points, or 0.29 percent, at 13,694.94.

The Dow Jones industrial average fell 149.76 points or 0.94 percent, to end at 15,698.85.

The S&P 500 lost 11.60 points or 0.65 percent, to finish at 1,782.59.

The Nasdaq Composite dropped 19.248 points or 0.47 percent, to close at 4,103.877.

For the week, the TSX composite fell 0.17 percent, the Dow fell 1.1 percent, the S&P 500 dipped 0.4 percent and the Nasdaq slipped 0.6 percent.

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