Canola futures on Friday were pulled higher by soaring soybean futures, which were on fire as forecasts for hot, dry weather through late August in the Midwest promise to sap yield potential.
November canola closed at $515.70, up $6.10.
Over the week it rose $15.10 per tonne, or three percent.
November soybeans rose 5.5 percent on the week thanks to a 8.6 percent climb in soy meal futures. Soy oil was mostly flat.
After the close, oilseeds received more bullish news when the Pro Farmer Midwest crop tour published its forecasts of U.S. crops.
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U.S. grains: Corn futures hit two-week low; soy slides, wheat steadies
U.S. corn futures hit a two-week low on Monday and soybeans also fell as market players continued to brace for large crops and forecasts called for milder, non-threatening weather in the Midwest production belt.
It pegged the soybean crop at 3.158 billion bushels with an average yield of 41.8 bu. per acre. That was below the U.S. Department of Agriculture forecast of 3.255 billion bu., and a yield of 42.6 bu. per ac.
The tour also had a lower corn production number than the USDA but because the soybean supply-to-use situation is much tighter than corn, all the price action is in soybeans.
Pro Farmer pegged the U.S. corn crop at 13.46 billion bu., with an average yield of 154.1 bu. per ac.
USDA’s forecast is 13.763 billion bu. and 154.4 bu. per acre.
“Late planting issues have become apparent along both the eastern and western legs of the tour, and while some of the crop tour yield calculations might have been surprising, there’s a good chance those estimates won’t come to fruition,” Pro Farmer noted.
The Prairie weather forecast is for hot weather into early next week which will help ripen the crop. Temperatures are forecast to cool to below normal temperatures by the middle of next week. However, the lows forecast are generally not close to freezing.
Malaysian palm oil futures rose to their highest in more than a month on growers’ estimates showing output fell in August, raising hopes that stocks in the world’s No.2 producer will tighten, Reuters reported.
The strong soy futures lifted Chicago corn and soft wheat, but Minneapolis hard spring wheat fell for the fourth straight day on indications of very strong yields in Canada and the Northern U.S. Statistics Canada this week forecast a record high wheat (ex durum) yield.
Wheat got some support from a frost in Argentina’s wheat belt, where the crop is in the early jointing phase.
ICE Futures adjusted milling wheat and durum prices. There was no trade.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2013 515.70 +6.10 +1.20%
Canola Jan 2014 521.10 +5.80 +1.13%
Canola Mar 2014 527.00 +6.00 +1.15%
Canola May 2014 530.60 +5.00 +0.95%
Canola Jul 2014 534.30 +3.90 +0.74%
Milling Wheat Oct 2013 252.00 +1.00 +0.40%
Milling Wheat Dec 2013 258.00 +1.00 +0.39%
Milling Wheat Mar 2014 263.00 +1.00 +0.38%
Durum Wheat Oct 2013 284.00 unch 0.00%
Durum Wheat Dec 2013 286.00 -2.00 -0.69%
Durum Wheat Mar 2014 293.00 -4.00 -1.35%
Barley Oct 2013 189.00 unch 0.00%
Barley Dec 2013 194.00 unch 0.00%
Barley Mar 2014 194.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Sep 2013 1365.25 +43.25 +3.27%
Soybeans Nov 2013 1328 +41.25 +3.21%
Soybeans Jan 2014 1328.5 +40 +3.10%
Soybeans Mar 2014 1305.25 +36 +2.84%
Soybeans May 2014 1275.75 +31.25 +2.51%
Soybeans Jul 2014 1274.75 +29 +2.33%
Soybean Meal Sep 2013 433.2 +19.9 +4.81%
Soybean Meal Oct 2013 421 +18.7 +4.65%
Soybean Meal Dec 2013 419.5 +19.2 +4.80%
Soybean Oil Sep 2013 42.64 +0.21 +0.49%
Soybean Oil Oct 2013 42.72 +0.23 +0.54%
Soybean Oil Dec 2013 43 +0.24 +0.56%
Corn Sep 2013 495.5 +8 +1.64%
Corn Dec 2013 470 +5.5 +1.18%
Corn Mar 2014 482.25 +5.25 +1.10%
Corn May 2014 490.25 +5.25 +1.08%
Corn Jul 2014 495.75 +5 +1.02%
Oats Sep 2013 363 -19.5 -5.10%
Oats Dec 2013 331.5 -1 -0.30%
Oats Mar 2014 335.75 -1 -0.30%
Oats May 2014 333.25 -1 -0.30%
Oats Jul 2014 324.75 -1.75 -0.54%
Wheat Sep 2013 634.5 +4 +0.63%
Wheat Dec 2013 646 +5.5 +0.86%
Wheat Mar 2014 658 +5.75 +0.88%
Wheat May 2014 665 +5.5 +0.83%
Wheat Jul 2014 660.5 +5.5 +0.84%
Minneapolis
Spring Wheat Sep 2013 716.25 -3 -0.42%
Spring Wheat Dec 2013 725 -1.5 -0.21%
Spring Wheat Mar 2014 739.75 -0.25 -0.03%
Spring Wheat May 2014 745 -3 -0.40%
Spring Wheat Jul 2014 751.5 -1.75 -0.23%
Kansas City
KCBT Red Wheat Sep 2013 695.5 +1.25 +0.18%
KCBT Red Wheat Dec 2013 697.25 +2.25 +0.32%
KCBT Red Wheat Mar 2014 704.75 +3.25 +0.46%
KCBT Red Wheat May 2014 708.25 +4 +0.57%
KCBT Red Wheat Jul 2014 697.5 +2.75 +0.40%
Light crude oil nearby futures in New York rose $1.39 at $106.42 US per barrel.
The Canadian dollar at noon was 95.10 cents US, down from 95.13 cents the previous trading day. The U.S. dollar at noon was $1.0515 Cdn.
Sales of new single-family homes in the United States fell sharply in July to their lowest level in nine months, casting a shadow over the country’s housing recovery.
Canada’s annual inflation rate edged up to 1.3 percent in July from 1.2 percent in June. Analysts had expected the rate to hit 1.4 percent. The lack of pressure on inflation shows there is little reason for the Bank of Canada to raise interest rates.
In early tallies —
The Toronto Stock Exchange’s S&P/TSX composite index closed up 87.95 points, or 0.69 percent, and 12,762.30.
The Dow Jones industrial average rose 46.62 points or 0.31 percent, to 15,010.36.
The S&P 500 gained 6.5 points or 0.39 percent, to 1,663.46.
The Nasdaq Composite added 19.085 points or 0.52 percent, to 3,657.792.
For the week the TSX composite rose 0.2 percent, Dow fell 0.5 percent, the S&P gained 0.5 percent and the Nasdaq added 1.5 percent.
