Canola futures rose about two percent on Monday, lifted by worries that heat and dry weather will limit pod set in the U.S. soybean crop.
After the market closed, the weekly USDA crop condition report lowered the rating of corn and soybeans by more than had been expected, providing support for prices when Tuesday trading resumes.
On Aug. 26 an industry tour of corn and soybean fields in the Midwest pegged corn average yields at 147.9 bushels per acre and soybeans at 41.8 bu. USDA’s official forecast is 153 bu. per acre for corn and 41.4 bu. for soybeans.
Read Also
Canadian Grain Commission to use surplus to avoid fee increases
The Canadian Grain Commission will continue to use its surplus to cover budget shortfalls and avoid potential fee increases until 2028, the federal agency announced Monday, Oct. 27.
The Canadian Wheat Board said favourable weather advanced the Prairie harvest. About 14 percent is in the bin now. That is still behind normal progress of 17 percent by this time.
The harvest is ahead of normal in Manitoba, where 29 percent is complete, compared to 24 percent on average. In Alberta, only nine percent has been harvested, compared to 17 per cent normally. Saskatchewan’s harvest is 14 percent complete, compared to 15 percent normally.
Temperatures in the past week were one to five degrees C above normal, with no frost outside pockets in northern Alberta.
Stronger than expected U.S. consumer spending in July lifted most markets. It strengthened hopes that the U.S. is not falling into recession.
Crude oil rallied, supporting oilseeds, but so did the Canadian dollar, which capped the upside.
Winnipeg (per tonne)
Canola Nov 11 $579.70, up $12.20
Canola Jan 12 $588.10, up $12.10
Canola Mar 12 $596.10, up $11.90
Canola May 12 $602.60, up $11.90
The previous day’s best basis was $10.00 under the November contract according to ICE Futures Canada in Winnipeg.
The November contract’s 14-day Relative Strength Index was 69. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Trade in feed barley has seen a modest revival.
Western Barley Oct 11 $205, unchanged
Western Barley Dec 11 $210, up $3
Western Barley Mar 11 $205, up $5
Chicago (per bushel)
Soybeans Sep 11 $14.38, up 23.25 cents
Soybeans Nov 11 $14.47, up 23.5
Soybeans Jan 12 $14.56, up 23.25
Corn Sep 11 $7.5625, up 3.75
Corn Dec 11 $7.70, up 3.0
Oats Sep 11 $3.815, up 2.5
Oats Dec 11 $3.84, down 4.0
Minneapolis (per bushel)
Spring Wheat Sep 11 $9.4825, down 8.0 cents
Spring Wheat Dec 11 $9.39, up 2.25
Spring Wheat Mar 12 $9.4225, up 2.5
Light crude oil nearby futures in New York rose seven cents at $85.37 US per barrel.
The Canadian dollar at noon was $1.0225 US, up from $1.0149 the previous trading day. The U.S. dollar at noon was 97.80 cents Cdn.
An unexpected surge in U.S. consumer spending for July, which indicated the economy was not falling back into recession, supported markets as did the merger of two weak Greek banks into stronger entity better able to cope with the country’s debt woes.
The Toronto Stock Exchange composite index closed up 177.34 points, or 1.44 percent, at 12,504.85.
The Standard & Poor’s 500 Index added 33.28 points, or 2.83 percent, to close at 1,210.08.
