Canola futures posted a second day of modest gains, supported by rising soybeans and a weaker Canadian dollar.
November canola closed up $2.90 at $449.80 per tonne.
However, over the week, the November contract fell $4.10 or 0.9 percent.
Today the loonie fell almost one cent against its American counterpart, as monthly employment reports were disappointing in Canada but showed growth in the United States.
It is clear that most places around the Canadian Prairies do not need more rain but, alas, forecast maps from the U.S. Weather Service show accumulations of more than .75 inch on the Alberta-Saskatchewan border Sunday night into Monday with more rain in the following day. In total, much of southern Alberta and southwestern Saskatchewan could get accumulations of about an inch by Tuesday night
The moisture is encouraging disease development and the season-long moisture is hurting lentils.
In areas where it is dry enough, harvest operations have just begun on winter cereals and pulses. There is some canola swathing.
Canadian canola processors wrapped up the final four days of the crop year with 91,155 tonnes of crush, bringing the total to 8.27 million tonnes versus 7.36 million last year.
Soybean enjoyed support from a pick up in U.S. export business that is helping to lift the price from three-and-a-half month lows hit earlier this month.
“The U.S. is in the driver’s seat for demand until the next South American crop is available after the first of the year,” said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa, told Reuters.
RISING PRODUCTION FORECASTS
Gains were limited by additional crop production forecasts from private analysts ahead of next week’s USDA monthly supply and demand report, which will be the first of the year to set its yield estimate based on farmer survey and in field testing.
Analytical firm Informa Economics on Friday predicted the corn harvest would reach 14.694 billion bushels, with a yield of 169.8 bu. per acre. It sees soybean production at 3.958 billion bu. from a yield of 47.7 bu. per acre.
That tops USDA’s July forecast but is less than a very optimistic forecast from FCStone earlier this week
The July USDA forecast for corn was 14.540 billion bu., with a yield of 168.0 bu. per acre, and the soybean harvest at 3.880 billion bu. and a yield of 46.7 bu.
WHEAT
Wheat futures rose on short covering after the Chicago contract hit a fresh 10-year low earlier this week. Also, the wheat market is getting support from falling wheat production estimates out of western Europe.
The French crop was hit exceptionally hard by a rainy growing season and the crop there is seen as the smallest in 30 years. Rain is now falling as Germany tries to harvest its wheat, damaging its quality.
However, production losses in the European Union are mitigated by larger than normal harvests in eastern Europe. Also there is big production in Russia and Ukraine.
The USDA said today tests show no GMO seed in the commercial wheat supply on the Washington state farm where unapproved GMO wheat plants were found in June. The farm will be able to sell its commercial wheat, which had been quarantined.
Click here to see more...