May canola closes lower but gains $6.30 per tonne over week

Canola futures fell on Friday on slowing crusher demand and overbought conditions.

Losses were limited by rising soybeans, which climbed on a forecast for reduced Brazilian soybean production and on good demand.

May canola closed at $570.50 per tonne, down 90 cents

November closed at $535.50, down 60 cents

For the week May rose $6.30 and November climbed $3.

• The high price of canola seed and stronger Canadian dollar has hurt crush margins. The Canadian Oilseed Processors Association said members crushed 126,164 tonnes in the week ending Feb. 29, down almost 14 percent from the week before. That represents a crush utilization rate of about 76 percent, down from the year’s average of 89 percent.

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U.S. soybean futures firmed on Wednesday as traders remained hopeful for progress in trade talks with top soy buyer China and on a Japanese proposal to increase U.S. soy purchases, deals that could help U.S. farmers avert major losses.

• Informa Economics lowered its forecast of South American soy production by one million tonnes.

It dropped Brazil’s 2011-12 soybean crop by two million tonnes to 68 million but it increased its estimate of the Argentine crop by one million tonnes to 47.5 million on late season rain.

The February U.S. Department of Agriculture report pegged Brazil’s crop at 72 million tonnes and Argentina’s crop at 48 million.

USDA updates its numbers a week from today.

Informa left its Argentine corn estimate steady at 22.5 million tonnes.

It raised its forecast of new-crop 2012-13 corn production in Ukraine to 24 million tonnes, up from 22.5 million last month.

• A port workers strike at Argentina’s main export hub delayed dozens of grain ships on Friday, supporting soybean prices.

• Wheat rose on short covering and on worries about the early warming of the U.S. red winter wheat area. Plants are breaking dormancy and are vulnerable if the weather turns cold again. Also the warm dry winds are drying soil.

Winnipeg (per tonne)

Canola Mar 12 $578.10, down $0.80 (-0.14%)

Canola May 12 $570.50, down $0.90 (-0.16%)

Canola Jul 12 $571.80, up $0.50 (+0.09%)

Canola Nov 12 $535.50, down $0.60 (-0.11%)

The previous trading day’s best basis in the par region moved into positive territory at $5 per tonne over the May contract, said the ICE Futures Canada exchange in Winnipeg.

The 14-day relative strength index was 81.

Western Barley Mar 12 $214.00, unchanged

Western Barley May 12 $220.00, unchanged

Milling Wheat Oct 12 $260.50, unchanged

Milling Wheat Dec 12 $265.50, unchanged

Milling Wheat Mar 13 $270.50, unchanged

Durum Wheat Oct 12 $265.90, unchanged

Durum Wheat Dec 12 $270.40, unchanged

Durum Wheat Mar 13 $276.60, unchanged

Barley Oct 12 $185.00, unchanged

Barley Dec 12 $188.50, unchanged

Barley Mar 13 $190.00, unchanged

Chicago (per bushel)

Soybeans Mar 12 $13.2825, up 11.5 cents (+0.87%)

Soybeans May 12 $13.33, up 10.5 (+0.79%)

Soybeans Nov 12 $12.98, up 3.75 (+0.29%)

Corn Mar 12 $6.59, up 5.25 (+0.80%)

Corn May 12 $6.55, up 1.0 (+0.15%)

Corn Dec 12 $5.70, up 3.25 (+0.57%)

Oats Mar 12 $3.28, up 0.75 (+0.23%)

Oats May 12 $3.0575, down 3.5 (-1.13%)

Oats Dec 12 $3.1575, down 5.25 (-1.64%)

Minneapolis (per bushel)

Spring Wheat Mar 12 $8.2775, up 13.75 cents (+1.69%)

Spring Wheat May 12 $8.315, up 14.5 (+1.77%)

Spring Wheat Dec 12 $8.09, up 6.5 (+0.81%)

Nearby light crude oil in New York settled at $106.70 a barrel, down $2.14.

The Canadian dollar at noon was at $1.0113 US, down from $1.0153 the previous trading day. The U.S. dollar at noon was 98.88 cents Cdn.

In an early tally, the Toronto Stock Exchange composite closed down 79.64 points, or 0.6 percent, at 12,643.82, its lowest close since Feb. 21.

The index was down 0.6 percent for the week.

Unofficially, the Dow Jones industrial average fell 5.53 points, or 0.04 percent, to finish at 12,974.77. The Standard & Poor’s 500 Index fell 4.54 points, or 0.33 percent, to close at 1,369.55. The Nasdaq Composite Index closed down 12.78 points, or 0.43 percent, to 2,976.19.

On the week, the Dow down 0.05 percent, the S&P 500 advanced 0.3 percent and the Nasdaq gained 0.4 percent.