New crop canola rose a little Friday thanks to a weaker loonie while U.S. crop futures fell, breaking a sustained rally.
Outside market developments were behind the shift, with a disappointing U.S. jobs report that caused most stocks and commodities to sag and the safe haven U.S. dollar to rise.
The U.S. added only 80,000 jobs in June, well short of expectations. This shows the U.S. economy is sick and falling back from the growth seen in the first quarter. Europe’s struggles with debt and declining economic output are slowing economies around the globe including China, which surprised markets by lowered interest rates on Thursday, indicating that the economy there might be slowing more than expected.
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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.
July canola closed at $678.30, up $10.90. The contract expires July 13.
November closed at $618.30, up 90 cents.
For the week, July rose a whopping $51.20.
November rose $24.60.
There was light trade in the ICE milling wheat contract that dropped the price. The exchange raised durum and barley contract prices without trade.
Corn, soybeans and wheat in Chicago were down today as traders took the opportunity to lock in profits after the three week rally.
But the drought that caused the rally still has the Midwest in its grip and on the week all crops futures made strong gains.
Cooler weather is expected next week, but no significant rain is in the forecast for the Midwest. There will likely be showers in the upper part of the Midwest but the not the lower part.
Midwest temperatures next week are expected to peak in the mid 80s F down from about 100 F this week. However, the latest forecasts today suggest a return to hotter weather 11 to 15 days out.
• The forecast for Western Canada’s crop areas look dry, sunny and warm in the coming week. Most areas have good moisture. The below normal areas are northern Alberta around High Level, north central Alberta and a pocket southeast of Edmonton, pockets of southern Saskatchewan near Coronach, Regina and south of Weyburn and pockets in Manitoba north of Portage la Prairie and east and south of Winnipeg.
See Ag Canada’s drought map http://www4.agr.gc.ca/DW-GS/current-actuelles.jspx?lang=eng&jsEnabled=true
• India’s agriculture minister today said the poor first month of the monsoon season could reduce pulse production in that country. He made no specific forecasts.
• Informa Economics lowered its estimate of the U.S. 2012 corn yield to 153.5 bushels per acre, from its previous figure of 154.9 in late June.
It now pegs soybean yield at 42 bu. per acre, from its previous estimate of 42.7.
It trimmed its all-wheat production forecast to 2.287 billion bu., from 2.310 billion in June. USDA’s current forecast is 2.234 billion bu.
• Russian wheat price reached record highs this week, reflecting the global run up in grain prices and worries about Russian production. SovEcon earlier this week pegged Russian wheat production at 48.5 million tonnes. Last year it produced about 56 million tonnes of wheat.
Winnipeg (per tonne)
Canola Jul 12 $678.30, up $10.90 +1.63%
Canola Nov 12 $618.30, up $0.90 +0.15%
Canola Jan 13 $621.80, up $0.50 +0.08%
Canola Mar 13 $624.30, up $2.50 +0.40%
Western Barley Jul 12 $237.00, unchanged
Western Barley Oct 12 $231.00, up $5.00 +2.21%
Milling Wheat Oct 12 $297.50, down $3.50 -1.16%
Milling Wheat Dec 12 $305.00, down $3.50 -1.13%
Milling Wheat Mar 13 $315.00, down $3.50 -1.10%
Durum Wheat Oct 12 $306.50, up $11.00 +3.72%
Durum Wheat Dec 12 $311.00, up $11.00 +3.67%
Durum Wheat Mar 13 $317.60, up $11.00 +3.59%
Barley Oct 12 $226.00, up $15.00 +7.11%
Barley Mar 13 $231.70, up $15.00 +6.92%
Chicago (per bushel)
Soybeans (P) Jul 12 $1619-6, down 6.75 -0.42%
Soybeans (P) Aug 12 $1567-2, down 15.75 -0.99%
Soybeans (P) Sep 12 $1532-0, down 19.5 -1.26%
Soybeans (P) Nov 12 $1505-6, down 20.75 -1.36%
Corn (P) Jul 12 $7.4325, down 24.75 -3.22%
Corn (P) Sep 12 $6.9525, down 13.5 -1.90%
Corn (P) Dec 12 $6.93, down 15.5 -2.19%
Oats (P) Jul 12 $3.515, down 4.5 -1.26%
Oats (P) Sep 12 $3.6175, down 3.5 -0.96%
Oats (P) Dec 12 $3.595, down 4.5 -1.24%
Minneapolis (per bushel)
Spring Wheat Jul 12 $9.1375, down 24.75 cents -2.64%
Spring Wheat Sep 12 $9.055, down 25.25 -2.71%
Spring Wheat Dec 12 $9.0675, down 27.75 -2.97%
Spring Wheat Mar 13 $9.13, down 27.0 -2.87%
Nearby crude oil in New York fell $2.77 to $84.45 per barrel.
The Bank of Canada noon rate for the Canadian dollar is 98.05 cents US, down from 98.71 the day before.
The U.S. dollar is $1.0199 Cdn.
In early tallies:
The Toronto Stock Exchange’s S&P/TSX composite index fell 157.38 points, or 1.3 percent, to 11,659.65.
The Dow Jones industrial average was down 124.43 points, or 0.96 percent, at 12,772.24.
The Standard & Poor’s 500 Index dropped 12.89 points, or 0.94 percent, to 1,354.69.
The Nasdaq Composite Index fell 38.79 points, or 1.30 percent, to 2,937.33.
For the Week, the TSX rose 0.54 percent, Dow fell 0.84 percent, the S&P dropped 0.55 percent, and the Nasdaq edged up 0.08 percent.
