Booming production at U.S. soybean crushers took canola along for a ride Monday, with canola rising $3.50 per tonne to $431.30 on the January Winnipeg futures contract.
The U.S. National Oilseed Processors Association said crush increased by 58 percent to 158 million bushels of soybeans in October, well above average analyst estimates of 151 million.
That sent prices of soybeans, soybean components and competing vegetable oil crops like canola higher.
“As soon as that was released, it gave the market a nudge,” said Errol Anderson, writer of the Pro Market Wire Report.
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Before the trading day, “I thought canola was going to lean lower, but that resurrection in the bean prices gave canola a lift.”
Canola was also supported by rising vegetable oil prices, with Malaysian palm oil rising almost a full percent.
U.S. soybean oil prices provided strength, with NOPA finding almost 100 million pounds less soybean oil in store than analysts predicted. The stocks were down about 40 percent from a year ago.
Cereals grains, however, did not go along for the ride. Wheat contracts fell, with Minneapolis spring wheat down five cents per bu. Hard red winter wheat and soft red winter fell harder, with eight and nine cent losses. Corn fell a few cents, but much less than the losses in winter wheat. Oats were relatively firm in nearby months but fell four cents in spring and summer contracts.
Some traders said that the wheat selloff was due to profit-taking after a prolonged surge had achieved three month highs, and Anderson concurred with that view.
But he also said there is reason to expect wheat to go down.
“The wheat is a little ahead of itself and due for a setback,” said Anderson.
“Should these prices be so high, considering the supplies out there?”
U.S. stock market indices are still floating near all time record highs, but British prime minister David Cameron warned that the world economy is flashing “red warning lights” and some economic situations are dire.
Light crude oil nearby futures in New York dropped 18 cents at US$75.64 per barrel.
The Canadian dollar at noon was US88.43 cents, down from US88.54 cents the previous trading day. The U.S. dollar at noon was C$1.1308.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 39.40 points, or 0.27 percent, at 14,882.50.
The Dow Jones industrial average rose 13.01 points, or 0.07 percent, to 17,647.75.
The S&P 500 gained 1.5 points, or 0.07 percent, to 2,041.32, a record closing high.
Nasdaq Composite dropped 17.54 points, or 0.37 percent, to 4,671.00.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jan 2015 431.30 +3.50 +0.82%
Canola Mar 2015 434.10 +2.80 +0.65%
Canola May 2015 435.30 +2.10 +0.48%
Canola Jul 2015 437.00 +1.60 +0.37%
Canola Nov 2015 432.00 +0.30 +0.07%
Milling Wheat Dec 2014 226.00 -4.00 -1.74%
Milling Wheat Mar 2015 234.00 -3.00 -1.27%
Milling Wheat May 2015 237.00 -3.00 -1.25%
Durum Wheat Dec 2014 356.50 unch 0.00%
Durum Wheat Mar 2015 357.50 unch 0.00%
Durum Wheat May 2015 357.50 unch 0.00%
Barley Dec 2014 160.00 unch 0.00%
Barley Mar 2015 163.00 unch 0.00%
Barley May 2015 163.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jan 2015 1036.25 +13.75 +1.34%
Soybeans Mar 2015 1044 +13.75 +1.33%
Soybeans May 2015 1050.25 +13.5 +1.30%
Soybeans Jul 2015 1055 +12.75 +1.22%
Soybeans Aug 2015 1055.75 +12.5 +1.20%
Soybean Meal Dec 2014 387.1 +7.2 +1.90%
Soybean Meal Jan 2015 370.7 +5.7 +1.56%
Soybean Meal Mar 2015 353.9 +3.8 +1.09%
Soybean Oil Dec 2014 32.45 +0.25 +0.78%
Soybean Oil Jan 2015 32.61 +0.27 +0.83%
Soybean Oil Mar 2015 32.82 +0.26 +0.80%
Corn Dec 2014 377.5 -4.25 -1.11%
Corn Mar 2015 390.5 -3.75 -0.95%
Corn May 2015 399 -3.75 -0.93%
Corn Jul 2015 406.5 -3.25 -0.79%
Corn Sep 2015 412.75 -3.25 -0.78%
Oats Dec 2014 339.5 unch 0.00%
Oats Mar 2015 339 -2.5 -0.73%
Oats May 2015 338.5 -4.5 -1.31%
Oats Jul 2015 334 -4.5 -1.33%
Oats Sep 2015 335.5 -1.5 -0.45%
Wheat Dec 2014 551.75 -8.75 -1.56%
Wheat Mar 2015 553.75 -9 -1.60%
Wheat May 2015 560.75 -8.75 -1.54%
Wheat Jul 2015 567.5 -8 -1.39%
Wheat Sep 2015 576 -8.25 -1.41%
Minneapolis
Spring Wheat Dec 2014 583.5 -5.75 -0.98%
Spring Wheat Mar 2015 591.5 -5.25 -0.88%
Spring Wheat May 2015 599.75 -4.75 -0.79%
Spring Wheat Jul 2015 607.5 -5.5 -0.90%
Spring Wheat Sep 2015 616 -5.75 -0.92%
Kansas City
Hard Red Wheat Dec 2014 596.5 -9 -1.49%
Hard Red Wheat Mar 2015 600 -8.25 -1.36%
Hard Red Wheat May 2015 603.75 -8 -1.31%
Hard Red Wheat Jul 2015 603.25 -7 -1.15%
Hard Red Wheat Sep 2015 614.75 -7 -1.13%
