Canola futures fell along with generally lower crop markets on Thursday as the trade took profits and focused on weak U.S. exports.
Canola was higher earlier in the day with buying by end users. Crush margins are favourable.
However, prices fell late in trade, partly due to the good harvest progress.
Saskatchewan Agriculture reported today that farmer in the province have combined 21 percent of their crop and a further 27 percent is swathed or ready to straight-cut.
The five-year (2006-2010) provincial average for this time of year is 20 percent combined and 26 percent swathed or ready to straight-cut.
Last year, eight percent had been combined and 22 percent swathed or ready to straight-cut.
Corn and soybeans fell sharply as traders took profits after recent gains.
The weekly tally of U.S. corn, soybean and wheat exports was lower than expected as high prices put off buyers.
Corn was further pressured by reports of better than expected yields in early harvested crop.
On the economic front, the pace of growth in the U.S. manufacturing sector slowed to a crawl in August but that was better than expected, lending modest support to equity markets. But on the other side of the ledger, a reading of international factory output in August slowed during the month.
Stocks fell ahead of Friday’s U.S. payroll report expected to show little new hiring in August.
Winnipeg (per tonne)
Canola Nov 11 $575.00, down $6.10
Canola Jan 12 $584.20, down $5.90
Canola Mar 12 $592.60, down $5.80
Canola May 12 $599.00, down $5.50
The previous day’s best basis was $20 under the November contract according to ICE Futures Canada in Winnipeg.
The November contract’s 14-day Relative Strength Index was 60. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Oct 11 $210.00 unchanged
Chicago (per bushel)
Soybeans Sep 11 $14.2475, down 24.25 cents
Soybeans Nov 11 $14.345, down 23.0
Soybeans Jan 12 $14.4525, down 22.0
Corn Sep 11 $7.2875, down 28.75
Corn Dec 11 $7.385, down 29.0
Oats Sep 11 $3.62, down 8.0
Oats Dec 11 $3.62, down 10.5
Minneapolis (per bushel)
Spring Wheat Sep 11 $9.7075, up 3.75 cents
Spring Wheat Dec 11 $9.32, down 14.5
Spring Wheat Mar 12 $9.3175, down 15.5
Light crude oil nearby futures in New York rose 12 cents at $88.93 US per barrel.
The Canadian dollar at noon was $1.0254 US, up from $1.0221 the previous trading day. The U.S. dollar at noon was 97.52 cents Cdn.
The Toronto Stock Exchange composite index unofficially closed down 67.96 points, or 0.53 percent, at 12,700.74.
The Standard & Poor’s 500 Index unofficially closed down 14.32 points, or 1.17 percent, at 1,204.57.
