Wittal: Loonie holds back canola futures

July 31 –– Equity markets started off in a positive mood and ended the day with some nice gains.

The U.S. dollar fell over a full cent today. The Canadian dollar, meanwhile, finished the week up closing at US92.7 cents, up 0.12 cents from last week.

The Dow Jones September quote closed up 30 points at 9,130, up 72 points over last week.

Crude oil showed good strength again today, closing up $2.51 at US$69.45 a barrel — up $1.40 a barrel from last week.

Corn was up six to eight cents a bushel today, up 23 cents a bushel over last week. Beans ended up three to 15 cents a bushel today, up 93 cents a bushel over last week’s close.

Wheat closed up five to 12 cents a bushel on the various U.S. exchanges. Minneapolis September wheat futures closed up 5.4 cents a bushel today, up 14 cents a bushel from last week.

Canola closed up $2-$7.70 per tonne today, up $9 per tonne over last week’s close. 

Barley closed down $1.20 per tonne at $154, up $5.60 per tonne over last week’s close.

It was good to see that the markets could finish the week on a positive note — especially Canadian markets heading into a long weekend. The continued rise in the Canadian dollar held canola back from further gains just as concerns about the lateness of the canola crop and the lack of rain are helping to support canola futures right now.

Happy new year

This is the end of the crop year today, so if you still have CWB wheat that needs to be delivered, you’d better be talking to your grain companies to see if they are extending the crop year to allow for late deliveries. If not, you may be faced with liquidated damage charges for not filling your delivery contracts to at least 90 per cent of the contracted tonnage.

If you had any fixed-price or basis contracts or early payment options for last year, you want to make sure that all of those contracts were filled with the deliveries you made. If they have not been filled and you have deliveries into the pool, you need to talk to your CWB rep or call the 1-800 line, to make sure all deliveries are applied against those contracts first, so that again, you don’t get charged for not filling those contracts.

Have a great long weekend and if you’re travelling, be careful on the roads, drive safe. We will be back Monday with a U.S. market update.

That’s all for this week. — Brian

— Brian Wittal has spent over 27 years in the grain industry, including as an elevator manager and producer services representative for Alberta Wheat Pool, a regional sales manager for AgPro Grain and farm business representative for the Canadian Wheat Board, where he helped design some of the new pricing programs. He also operates his own company providing marketing and risk management advice for Prairie grain producers. Brian’s daily commentaries focus on how domestic and world market conditions affect you directly as grain producers.

Brian welcomes feedback and information on market conditions in your area, such as current offering prices, basis levels, trucking premiums and special crops contracts. Contact Brian today.

About the author



Brian Wittal

Brian Wittal has 30 years of grain industry experience and currently offers market planning and marketing advice to farmers through his company Pro Com Marketing Ltd.


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