December spring wheat future were slammed down 3.3 percent Friday as the USDA said the crop was larger than expected.
The USDA reports were more positive for soybeans and corn, causing modest rallies in those crops that spilled over to support canola.
November canola closed at $492.40 per tonne, up $1.60 on the day.
The oilseed saw only slightly movements all week.
Compared to last Friday the November contract is down $2.40 a tonne.
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Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Harvest in Western Canada in the last 10 days or so has been delayed by wet weather but progress should have begun again in the last day or two with sunny, warm weather.
However a weather system moving into the Prairies on Sunday is expected to bring rain and much cooler temperatures early next week.
Some of the heaviest accumulations of rain are expected south of the TransCanada Highway in Saskatchewan, which had some of the driest weather this summer.
Weather has been good in the U.S. Midwest but rain is expected in Minnesota and northern Iowa in coming days.
USDA REPORTS
The U.S. government released its Small Grains annual and quarter stocks reports this morning.
WHEAT
It pegged the spring wheat crop at 416.2 million bushels, down from 532.2 million last year but at the high end of the trade’s expectations and up from last month’s forecast of 402 million.
The drought in the U.S. northern Plains took a toll on yield. USDA pegged it at 41 bu. per acres, down from 47.3 bu last year and 46.2 bu. in 2015.
It pegged the harvested area at 10.16 million acres, down 7.7 percent from the area seeded, more than the 2.6 percent decline in 2016 and 2.3 percent in 2015. In August the harvested area forecast was 10.5 million acres.
The abandonment number increased because some farmers cut poor wheat crops for livestock feed as pastures burned up.
DURUM
USDA said the durum crop was 55 million bushels, down from 104 million last year, but up from 51 million forecast last month and at the top end of the trade’s expectation.
There is no futures market for durum.
According to PDQInfo.ca the average cash price in southwestern Saskatchewan has been fairly steady for the past two weeks at around C$267 per tonne, down from the peak of about $310 in mid August.
STOCKS
The USDA pegged US Sept. 1 soybean stocks at 301 million bu., below the trade’s range of forecast of 321 million to 363 million.
It pegged corn stocks at 2.295 billion bu., below the range of expectations of 2.31 million to 2.45 million.
Wheat stocks at 2.253 billion bu. were slightly above the midpoint of expectations.
CANOLA CRUSH
The canola crush rose almost nine percent in the week to 184,831 tonnes, representing a capacity use of 83.4 percent. That is starting to get back to the kind of pace common last crop year.
The total crush to date is 1.28 million tonnes, down from 1.35 million at the same point last year.
Given that total canola supply this year is expected to be similar to last year, it will be important to maintain a similar pace of crush and exports.
Canola exports in the last week jumped significantly higher, helping to catch up to last year’s pace after several slow weeks.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were up 11 cents at US$51.67 per barrel.
In the afternoon, the Canadian dollar was trading around US80.15 cents, down from 80.42 cents the previous trading day. The U.S. dollar was C$1.2477.
Canada’s monthly GDP was unchanged in July, ending an eight month string of gains.
The slower economy gives room to the Bank of Canada to take its time raising interest rates.
The Toronto Stock Exchange’s S&P/TSX composite index rose 16.69 points, or 0.11 per cent, to close at at 15,634.94.
The Dow Jones Industrial Average rose 23.89 points, or 0.11 percent, to 22,405.09, the S&P 500 gained 9.3 points, or 0.37 percent, to 2,519.36 and the Nasdaq Composite added 42.51 points, or 0.66 percent, to 6,495.96.
For September the TSX composite rose 2.8 percent, the S&P rose 1.9 percent, the Dow added 2.1 percent, the Nasdaq gained 1.05 percent.
For the third quarter, the TSX was up about three percent, the Dow climbed 4.9 percent, the S&P advanced four percent and the Nasdaq gained 5.8 percent.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 17 492.40s +1.60 +0.33%
Canola Jan 18 498.90s +1.60 +0.32%
Canola Mar 18 503.60s +1.70 +0.34%
Canola May 18 505.90s +1.80 +0.36%
Canola Jul 18 506.70s +1.90 +0.38%
Milling Wheat Oct 17 236.00s unch unch
Milling Wheat Dec 17 238.00s unch unch
Milling Wheat Mar 18 244.00s unch unch
Durum Wheat Oct 17 280.00s +1.00 +0.36%
Durum Wheat Dec 17 284.00s +1.00 +0.35%
Durum Wheat Mar 18 287.00s +1.00 +0.35%
Barley Oct 17 145.00s unch unch
Barley Dec 17 148.00s unch unch
Barley Mar 18 151.00s unch unch
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.
Chicago
Soybeans Nov 17 968-2s +8-6 +0.91%
Soybeans Jan 18 978-4s +8-2 +0.85%
Soybeans Mar 18 987-6s +8-2 +0.84%
Soybeans May 18 995-6s +7-6 +0.78%
Soybeans Jul 18 1002-4s +7-2 +0.73%
Soybean Meal Oct 17 311.5s +4.7 +1.53%
Soybean Meal Dec 17 315.8s +4.3 +1.38%
Soybean Meal Jan 18 317.8s +4.2 +1.34%
Soybean Oil Oct 17 32.57s -0.02 -0.06%
Soybean Oil Dec 17 32.82s unch unch
Soybean Oil Jan 18 32.99s -0.01 -0.03%
Corn Dec 17 355-2s +2-6 +0.78%
Corn Mar 18 367-6s +2-4 +0.68%
Corn May 18 376-2s +2-4 +0.67%
Corn Jul 18 383-6s +2-4 +0.66%
Corn Sep 18 390-0s +2-0 +0.52%
Oats Dec 17 251-2s +1-6 +0.70%
Oats Mar 18 255-2s +1-6 +0.69%
Oats May 18 254-2s +1-6 +0.69%
Oats Jul 18 250-0s -1-0 -0.40%
Oats Sep 18 250-0s -1-0 -0.40%
Wheat Dec 17 448-2s -6-6 -1.48%
Wheat Mar 18 466-4s -7-6 -1.63%
Wheat May 18 479-2s -8-0 -1.64%
Wheat Jul 18 490-6s -8-0 -1.60%
Wheat Sep 18 506-0s -7-2 -1.41%
Minneapolis
Spring Wheat Dec 17 623-6s -21-2 -3.29%
Spring Wheat Mar 18 637-0s -19-6 -3.01%
Spring Wheat May 18 643-0s -16-6 -2.54%
Spring Wheat Jul 18 645-0s -13-2 -2.01%
Spring Wheat Sep 18 634-2s -8-2 -1.28%
Kansas City
Hard Red Wheat Dec 17 442-6s -10-2 -2.26%
Hard Red Wheat Mar 18 460-2s -10-4 -2.23%
Hard Red Wheat May 18 474-0s -10-2 -2.12%
Hard Red Wheat Jul 18 490-6s -10-2 -2.05%
Hard Red Wheat Sep 18 509-0s -10-0 -1.93%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Oct 17 109.100s +0.125 +0.11%
Live Cattle Dec 17 115.250s +0.200 +0.17%
Live Cattle Feb 18 118.625s +0.075 +0.06%
Feeder Cattle Oct 17 152.225s -0.725 -0.47%
Feeder Cattle Nov 17 154.000s -0.975 -0.63%
Feeder Cattle Jan 18 151.525s -1.050 -0.69%
Lean Hogs Oct 17 55.400s -0.150 -0.27%
Lean Hogs Dec 17 59.950s +1.675 +2.87%
Lean Hogs Feb 18 65.050s +1.700 +2.68%
