Canola futures fell Friday on good growing weather and weaker palm oil.
Crop watchers say that the weather in Western Canada so far this season has been more positive than negative for crop production.
On the week, November canola fell $6.91 per tonne or 1.3 percent on the benign weather and stronger loonie while November soybeans gained 29 cents per bushel or 2.4 percent on weather concerns and the weaker U.S. buck.
U.S. crop markets today were lower across the board with corn leading the market down.
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U.S. grains: Corn futures edge up, soybeans sag on improving US crop ratings
Chicago Board of Trade corn futures extended slight gains on Tuesday as short covering and bargain buying continued to support a rebound from contract lows reached during the previous session.
Residual pressure came from Thursday’s USDA report that forecast 2013-14 ending stocks in corn and soybeans higher than what the trade expected.
The U.S. Midwest is expected to enjoy a couple of days of moderate temperatures and showers, but then get drier in the second half of the month. That could hurt yield prospects, but the market earlier this week already rallied to put in a risk premium. Also, updated forecasts today show it will not be as hot as was expected in forecasts earlier this week.
Malaysian palm oil futures fell more than three percent on Friday on worries about slow exports, Reuters reported.
The price fell through technical support points adding to the downward momentum.
Statistics showed that for July 1 to 10 palm oil exports fell 16 percent, surprising traders who expected last minute buying ahead of the Muslim festival of Ramadan, Reuters reported.
Wheat declined only slightly, supported by the recent huge wheat sales to China and USDA’s large cut to global 2013-14 wheat ending stocks.
China is also buying corn. The USDA reported today that the Asian giant bought 960,000 tonnes of U.S. corn for delivery during the new marketing year.
The Canadian Oilseed Processors Association said members crushed 115,700 tonnes of canola in the week ending July 10 almost steady with the week before. That represented a capacity use of about 70 percent.
Reuters today reported that the China National Bureau of Statistics said the winter wheat harvest rose 1.3 percent from last year to 115.67 million tonnes. That was a bit surprising because of the heavy rain at harvest and the recent large import deals. Reuters reported that an analyst at an official think tank said the bureau’s forecast did not take into account the rain damage.
Agrimoney.com reported that Goldman Sachs analyst Damien Courvalin noted the USDA report this week did not reflect indications that Russia’s wheat crop could be a little smaller than expected.
Russia’s agriculture minister this week said the country would harvest “no less than” 50 million tonnes of wheat. Private forecaster SovEcon pegged the crop at between 49.5 and 51.5 million tonnes. The USDA this week kept its forecast at 54 million tonnes.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2013 530.80 -6.30 -1.17%
Canola Jan 2014 536.70 -6.20 -1.14%
Canola Mar 2014 541.50 -6.50 -1.19%
Canola May 2014 539.50 -6.10 -1.12%
Canola Jul 2014 537.60 -5.70 -1.05%
Milling Wheat Oct 2013 271.00 -11.00 -3.90%
Milling Wheat Dec 2013 276.00 -6.00 -2.13%
Milling Wheat Mar 2014 282.00 unch 0.00%
Durum Wheat Oct 2013 302.00 -5.00 -1.63%
Durum Wheat Dec 2013 307.00 -5.00 -1.60%
Durum Wheat Mar 2014 312.00 -6.00 -1.89%
Barley Oct 2013 194.00 unch 0.00%
Barley Dec 2013 199.00 unch 0.00%
Barley Mar 2014 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 Aug 2013 1429 -43 -2.92%
Soybeans Sep 2013 1298.25 -34.25 -2.57%
Soybeans Nov 2013 1257.25 -33.5 -2.60%
Soybeans Jan 2014 1261.75 -33.25 -2.57%
Soybeans Mar 2014 1260.25 -32.5 -2.51%
Soybeans May 2014 1255.75 -29.75 -2.31%
Soybean Meal Aug 2013 442.9 -15.1 -3.30%
Soybean Meal Sep 2013 406.3 -14.6 -3.47%
Soybean Meal Oct 2013 375.9 -14.3 -3.66%
Soybean Oil Aug 2013 46.22 -0.31 -0.67%
Soybean Oil Sep 2013 46.17 -0.15 -0.32%
Soybean Oil Oct 2013 45.88 -0.04 -0.09%
Corn Sep 2013 545.5 -15.25 -2.72%
Corn Dec 2013 509.25 -17.75 -3.37%
Corn Mar 2014 521.5 -17.75 -3.29%
Corn May 2014 529 -17.75 -3.25%
Corn Jul 2014 535.5 -17.5 -3.16%
Oats Sep 2013 352.25 -4 -1.12%
Oats Dec 2013 341.5 -5 -1.44%
Oats Mar 2014 348.25 -4.25 -1.21%
Oats May 2014 353.5 -4.75 -1.33%
Oats Jul 2014 363 -4.75 -1.29%
Wheat Sep 2013 681 -2 -0.29%
Wheat Dec 2013 693.75 -2.75 -0.39%
Wheat Mar 2014 705.5 -4 -0.56%
Wheat May 2014 712.75 -3 -0.42%
Wheat Jul 2014 709.25 -3 -0.42%
Minneapolis
Spring Wheat Sep 2013 766.5 -0.75 -0.10%
Spring Wheat Dec 2013 778.25 -0.5 -0.06%
Spring Wheat Mar 2014 792.75 +0.75 +0.09%
Spring Wheat May 2014 799 -1.75 -0.22%
Spring Wheat Jul 2014 806.25 +0.75 +0.09%
Kansas City
KCBT Red Wheat Sep 2013 708.5 unch 0.00%
KCBT Red Wheat Dec 2013 724.25 -2 -0.28%
KCBT Red Wheat Mar 2014 737 -1.75 -0.24%
KCBT Red Wheat Jul 2014 742 -0.5 -0.07%
Light crude oil nearby futures in New York rose $1.04 at $105.95 US per barrel.
The Canadian dollar at noon was 96.23 cents US, down from 96.26 cents the previous trading day. The U.S. dollar at noon was $1.0392 Cdn.
In early tallies —
The Toronto Stock Exchange’s S&P/TSX composite index fell 31.08 points, or 0.25 percent, to close at 12,462.18.
The Dow Jones industrial average was up 1.38 points, or 0.01 percent, at 15,462.30.
The Standard & Poor’s 500 Index was up 5.03 points, or 0.30 percent, at 1,680.05.
The Nasdaq Composite Index was up 21.78 points, or 0.61 percent, at 3,600.08.
For the week, the TSX composite was up 2.7 percent, the Dow rose 2.1 percent, the S&P rose 2.9 percent and the Nasdaq added 3.5 percent.
The S&P 500 has rebounded 6.7 percent from a June 24 bottom as more favourable economic data on the state of the U.S. economy offset concerns about the U.S. Federal Reserve’s plans for scaling back its quantitative easing stimulus plan.
