Canola sold off Monday as soybean oil suffered another day of losses, weakening the overall vegetable oil crop markets.
Canola is particularly vulnerable to weakness in vegoil prices because most of its value comes from its oil content. Where vegoil prices go, canola follows.
“Bean oil has really rolled over in the last few days,” said Ken Ball of P.I. Financial in Winnipeg.
“It was down pretty hard today, so it pulled canola down.”
Canola fell $9.50 per tonne to $466 for the November contract and $8.60 to $474.70 per tonne for January.
Read Also
Farm cash receipts rise in first half of 2025 on livestock gains
Farm cash receipts in the first half of the year were up 3.3 per cent over the same period last year buoyed by livestock receipts. Overall receipts between January and June totalled $49.6 billion, up $1.6 billion from the same period last year, Statistics Canada reported.
It was the first time November closed below $470 since Oct. 9 when it closed at $469.50.
Since late September November has been mostly trading between $480 and $470.
>>>>>Sign up for our free daily morning email newsletter with the top news and markets information>>>>>
Soybeans are feeling pressure from a number of sources, including the unclear result of the continuing Argentina election. Farmers there have been hoarding enormous amounts of soybeans as a wealth conservation practice in an inflationary and high tax environment, but it is possible a less business-hostile leader could emerge from the run-off election, which could inspire Argentine farmers to open their bins and sell, which would be negative for prices.
However, it was an up day for wheat, but it was hard to say why because most of the explanations for the 17 to 18 cent rally didn’t make much sense.
Some attributed the 3.77 percent gain in Chicago wheat to the heavy rains that fell on Texas over the weekend and to dryness in Kansas. The rally extended into Kansas City hard red winter wheat and Minneapolis spring wheat with Kansas up 3.52 percent and Minneapolis up 2.61 percent.
The Texas heavy rain mostly hit areas that don’t grow a lot of wheat. The main production areas are to the north and those got beneficial rains out of the hurricane system.
However, a good part of Kansas, the largest producer of hard red winter wheat remains dry and is unlikely to get much rain this wee. Dry soils remain a problem in part of Russia and Ukraine although some regions got showers last week.
Ethiopia is tendering for wheat, to which some attributed the bullish price move, even if the country doesn’t aggressively chase prices higher.
Ball said the wheat rally might have been sparked by “predator” funds that believe other speculators have large short positions and can be forced into a short-covering rally.
The U.S. dollar also weakened, causing greenback-denominated futures contract prices to appear cheaper in other currencies.
Regardless of cause, wheat rallied, and that helped push corn higher. Corn prices also benefitted from the rains, which will delay the rest of the corn harvest and slow the flow of any more corn into the sated system.
Oats only managed a one cent gain on the day.
Contact ed.white@producer.com
Light crude oil nearby futures in New York were down 62 cents to US$43.98 per barrel.
The Canadian dollar at noon was US76.14 cents, down from 75.92 cents the previous trading day. The U.S. dollar at noon was C$1.3134.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 162.76 points, or 1.17 percent, at 13,790.90.
The Dow Jones industrial average fell 23.65 points, or 0.13 percent, to 17,623.05, the S&P 500 lost 3.97 points, or 0.19 percent, to 2,071.18 and the Nasdaq Composite added 2.84 points, or 0.06 percent, to 5,034.70.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2015 466.00 -9.50 -2.00%
Canola Jan 2016 474.70 -8.60 -1.78%
Canola Mar 2016 480.10 -8.00 -1.64%
Canola May 2016 481.60 -7.30 -1.49%
Canola Jul 2016 480.20 -6.80 -1.40%
Milling Wheat Dec 2015 235.00 +6.00 +2.62%
Milling Wheat Mar 2016 240.00 +6.00 +2.56%
Milling Wheat May 2016 244.00 +6.00 +2.52%
Durum Wheat Dec 2015 330.00 -10.00 -2.94%
Durum Wheat Mar 2016 335.00 -10.00 -2.90%
Barley Dec 2015 185.00 unch 0.00%
Barley Mar 2016 187.00 unch 0.00%
Barley May 2016 188.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Nov 2015 885 -10.5 -1.17%
Soybeans Jan 2016 884.5 -11.5 -1.28%
Soybeans Mar 2016 886.75 -11.5 -1.28%
Soybeans May 2016 891.25 -11 -1.22%
Soybeans Jul 2016 896.25 -10.75 -1.19%
Soybeans Aug 2016 895 -10.75 -1.19%
Soybean Meal Dec 2015 302.2 -2.9 -0.95%
Soybean Meal Jan 2016 301.9 -2.3 -0.76%
Soybean Meal Mar 2016 300.6 -1.9 -0.63%
Soybean Oil Dec 2015 27.78 -0.79 -2.77%
Soybean Oil Jan 2016 28.08 -0.78 -2.70%
Soybean Oil Mar 2016 28.3 -0.76 -2.62%
Corn Dec 2015 384.5 +4.75 +1.25%
Corn Mar 2016 393.5 +4.75 +1.22%
Corn May 2016 399.5 +4.75 +1.20%
Corn Jul 2016 403.75 +4.75 +1.19%
Corn Sep 2016 401.25 +5.25 +1.33%
Oats Dec 2015 228.75 +1 +0.44%
Oats Mar 2016 231.75 +1.25 +0.54%
Oats May 2016 233 +1.25 +0.54%
Oats Jul 2016 237.5 +1.25 +0.53%
Oats Sep 2016 238.75 +1.25 +0.53%
Wheat Dec 2015 509 +18.5 +3.77%
Wheat Mar 2016 514.75 +17.5 +3.52%
Wheat May 2016 519.25 +17.75 +3.54%
Wheat Jul 2016 521.25 +18.25 +3.63%
Wheat Sep 2016 529.75 +18.5 +3.62%
Minneapolis
Spring Wheat Dec 2015 520.5 +13.25 +2.61%
Spring Wheat May 2016 545 +12.5 +2.35%
Spring Wheat Jul 2016 555.5 +10.25 +1.88%
Spring Wheat Sep 2016 566.75 +10.25 +1.84%
Kansas City
Hard Red Wheat Dec 2015 492.25 +16.75 +3.52%
Hard Red Wheat Mar 2016 507.5 +16.75 +3.41%
Hard Red Wheat May 2016 517.5 +16.5 +3.29%
Hard Red Wheat Jul 2016 527.5 +16.75 +3.28%
Hard Red Wheat Sep 2016 540.75 +16.25 +3.10%
