Rapid U.S. harvest drags down oilseeds including canola

Canola futures fell more than one percent Monday, pressured by a two percent crop in Chicago soybeans.

Soybeans were under pressure from the rapid U.S. harvest and continuing reports of better than expected yields.

November canola closed at $588.90, down $8.80 or 1.47 percent.

• Cargill announced it will begin construction on an 850,000 tonne canola crushing plant in Camrose, Alta.

• Richardson International announced it is spending $120 million on an expansion of its export terminal in Vancouver.

• Some analysts are talking about the possibility of another oilseed rally once harvest pressure dies down. But that rally might last only a short time until pressure starts to mount from talk of a bumper South American harvest

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Today Brazilian forecaster Celeres said Brazil’s soy crop now being seeded could reach just over 79 million tonnes, up nearly a million tonnes its last forecast in early September.

It appears seeding intentions are increasing as producers can lock in excellent prices for the crop.

Last year drought reduced the crop to 66.3 million tonnes.

Brazilian weather service Somar today forecast rain spreading into dry areas of key soybean state Mato Grosso by Oct. 10. Central Mato Grosso was dry in September but should get rain in coming weeks to help with seeding. Other areas of Brazil have seen good rain in September, as has Argentina, which will also soon be seeding soybeans.

• The U.S. harvest continues to race ahead, according to the country’s agriculture department.

The U.S. corn harvest was 54 percent complete as of Sept. 30, up from 39 percent a week earlier and well above the five-year average of 20 percent.

The soybean harvest is 41 percent done compared to 22 percent a week ago. The five-year average for late September is 19 percent.

Winnipeg (per tonne)

Canola Nov 12 $588.90, down $8.80 -1.47%

Canola Jan 13 $592.30, down $9.50 -1.58%

Canola Mar 13 $591.60, down $9.80 -1.63%

Canola May 13 $584.00, down $9.00 -1.52%

Milling Wheat Oct 12 $297.70, down $2.80 -0.93%

Milling Wheat Dec 12 $302.90, down $2.80 -0.92%

Milling Wheat Mar 13 $312.40, down $2.80 -0.89%

Durum Wheat Oct 12 $311.90, unchanged

Durum Wheat Dec 12 $316.40, unchanged

Durum Wheat Mar 13 $323.00, unchanged

Barley Oct 12 $249.50, down $0.80 -0.32%

Barley Dec 12 $254.50, down $0.80 -0.31%

Barley Mar 13 $257.50, down $0.80 -0.31%

Chicago (per bushel)

Soybeans (P) Nov 12 $15.6025, down 40.75 cents -2.55%

Soybeans (P) Jan 13 $15.63, down 39.75 -2.48%

Soybeans (P) Mar 13 $15.295, down 34.75 -2.22%

Soybeans (P) May 13 $14.885, down 33.0 -2.17%

Corn (P) Dec 12 $7.5675, up 0.5 +0.07%

Corn (P) Mar 13 $7.60, up 0.5 +0.07%

Corn (P) May 13 $7.5575, down 0.75 -0.10%

Oats (P) Dec 12 $3.665, down 4.0 -1.08%

Oats (P) Mar 13 $3.7175, down 4.25 -1.13%

Oats (P) May 13 $3.73, down 4.25 -1.13%

Minneapolis (per bushel)

Spring Wheat Dec 12 $9.375, down 21.0 cents -2.19%

Spring Wheat Mar 13 $9.4725, down 19.5 -2.02%

Spring Wheat May 13 $9.53, down 19.25 -1.98%

Spring Wheat Jul 13 $9.4975, down 18.5 -1.91%

The Bank of Canada noon rate for the loonie is $1.0176 US, little changed from $1.0166 on Friday.

The U.S. buck is 98.27 cents Cdn.

Nearby crude oil in New York rose 29 cents to $92.48 per barrel.

An upbeat U.S September manufacturing report lifted stock markets.

The Toronto Stock Exchange’s S&P/TSX composite index rose 52.73 points, or 0.4 percent, at 12,370.19.

The Dow Jones industrial average rose 77.98 points, or 0.58 percent, to close at 13,515.11.

The Standard & Poor’s 500 Index climbed 3.82 points, or 0.27 percent, at 1,444.49.

The Nasdaq Composite Index slipped 2.70 points, or 0.09 percent, to close at 3,113.53.

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