WP markets review April 26

Commodity markets showed little predictability ahead of the Statistics Canada planting intentions report in the middle of last week. Canola acres might be down from expectations, while western Canadian growers diversify their cropping, spreading their risk around for the 2014 growing season.

That pushed canola markets up nearly half a point on the week, finishing Friday at $471.70 for May. The smaller expected acres didn’t provide any growth on the November contract, which lost ground over the week, finishing at $485.20, down two points over the period.

Canola had soared higher Friday with continuing support from the bullish Statistics Canada report Thursday and on a report that Pakistan had bought about 100,000 tonnes of the oilseed.

For Western Producer markets editor D’Arce McMillan’s take on the week’s trading, and the news affecting the agriculture industry, watch him here:

May canola ended Friday at $471.70 up $19.30 or 4.27 percent.

Over the week May was up $2 or 0.4 percent.

Although the StatsCan numbers were for new crop, the nearby contracts are rising faster than new crop.

November closed at $485.20, up $11.60 or 2.45 percent

On the week, November fell $8.90 or 1.8 percent.

Reuters reported that one shipment to Pakistan of 55,000 tonnes was bought at $589 a tonne on a cost and freight basis for shipment in May.

The other shipment for 46,000 tonnes was at a price of about $575 a tonne for shipment in August.

The increased tension between Russia and Ukraine pushed wheat higher. Also the rain in the U.S. plains this week did not reach the driest parts of the western hard red winter wheat region.

Spring wheat futures rose about two percent this week.

Corn rose again as concern rises about the slow start to seeding in the U.S. Midwest. A lot of rain is expected there over the next few days.

Over the week, corn rose 2.5 percent and both nearby and new crop December futures are above $5 per bushel.

Soybeans rose Friday on thoughts that declines earlier in the week were overdone.

U.S. processors were still scrambling to find soy to crush, lifting soymeal and soybeans, traders told Reuters.

“The reality is that the basis level is above the futures market on the meal, and that’s still driving us gangbusters,” said Jerry Gidel, chief feed grains analyst for Rice Dairy.

Early in the week, soybeans fell on word that China was defaulting on deals and that shipments of Brazilian soybeans were being diverted to the U.S.

May soybeans closed at $14.98 a bushel, down 16 cents or just over one percent on the week.

The International Grains Council said on Friday it had cut its 2014-15 global corn and wheat production forecasts, Reuters reported

World corn production was projected at 950 million tonnes, down 11 million from last month’s forecast, and below the prior season’s 965 million.

For wheat, global production was trimmed by three million tonnes from the March forecast to 697 million, below last season’s 709 million tonnes.

Global consumption of wheat was pegged at 701 million tonnes, up one million tonnes from the previous month and higher than the previous year’s 691 million tonnes.

Corn consumption was forecast at 945 million tonnes, unchanged from a month earlier and up from 935 million tonnes the previous year.

 

Winnipeg ICE Futures Canada dollars per tonne

Canola May 2014       471.70       +19.30       +4.27%

Canola Jul 2014       474.30       +14.20       +3.09%

Canola Nov 2014       485.20       +11.60       +2.45%

Canola Jan 2015       491.70       +11.30       +2.35%

Canola Mar 2015       497.90       +11.20       +2.30%

 

Milling Wheat May 2014       225.00       +3.00       +1.35%

Milling Wheat Jul 2014       224.00       +3.00       +1.36%

Milling Wheat Oct 2014       226.00       +3.00       +1.35%

 

Durum Wheat May 2014       250.00       unch       0.00%

Durum Wheat Jul 2014       250.00       unch       0.00%

Durum Wheat Oct 2014       252.00       unch       0.00%

 

Barley May 2014       139.50       unch       0.00%

Barley Jul 2014       140.50       unch       0.00%

Barley Oct 2014       140.50       unch       0.00%

 

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

 

Chicago

Soybeans May 2014       1498       +26       +1.77%

Soybeans Jul 2014       1494.25       +24.25       +1.65%

Soybeans Aug 2014       1428.25       +18.75       +1.33%

Soybeans Sep 2014       1302       +11.75       +0.91%

Soybeans Nov 2014       1239.75       +8.75       +0.71%

Soybeans Jan 2015       1245       +8.25       +0.67%

 

Soybean Meal May 2014       490.6       +10.4       +2.17%

Soybean Meal Jul 2014       481.4       +10.7       +2.27%

Soybean Meal Aug 2014       454.1       +7.7       +1.72%

 

Soybean Oil May 2014       42.92       +0.33       +0.77%

Soybean Oil Jul 2014       43.15       +0.29       +0.68%

Soybean Oil Aug 2014       43       +0.2       +0.47%

 

Corn May 2014       507       +5.75       +1.15%

Corn Jul 2014       512.75       +5.5       +1.08%

Corn Sep 2014       509.25       +4.25       +0.84%

Corn Dec 2014       506.25       +3.5       +0.70%

Corn Mar 2015       514.25       +3.5       +0.69%

 

Oats May 2014       402.5       +0.75       +0.19%

Oats Jul 2014       358       +2.5       +0.70%

Oats Sep 2014       349.75       +2.75       +0.79%

Oats Dec 2014       338.5       +2       +0.59%

Oats Mar 2015       336.25       unch       0.00%

 

Wheat May 2014       700.25       +11.25       +1.63%

Wheat Jul 2014       708.25       +11.75       +1.69%

Wheat Sep 2014       716.5       +11       +1.56%

Wheat Dec 2014       730.5       +10.75       +1.49%

Wheat Mar 2015       742.75       +10       +1.36%

 

Minneapolis

Spring Wheat May 2014       747.5       +11.25       +1.53%

Spring Wheat Jul 2014       749.5       +10       +1.35%

Spring Wheat Sep 2014       755.75       +9.25       +1.24%

Spring Wheat Dec 2014       766.5       +9.5       +1.25%

Spring Wheat Mar 2015       773.5       +7.5       +0.98%

 

Kansas City

KC HRW Wheat May 2014       775.75       +16.25       +2.14%

KC HRW Wheat Jul 2014       779.5       +14       +1.83%

KC HRW Wheat Sep 2014       785.5       +13.75       +1.78%

KC HRW Wheat Dec 2014       795.75       +13.75       +1.76%

KC HRW Wheat Mar 2015       798.25       +12.5       +1.59%

 

Light crude oil nearby futures in New York dropped $1.34 at $100.60 US per barrel.

The Canadian dollar at noon was 90.56 cents US, down from 90.69 cents the previous trading day. The U.S. dollar at noon was $1.1042 Cdn.

The Toronto Stock Exchange’s S&P/TSX composite index closed down 20.68 points, or 0.14 percent, at 14,533.57.

The index gained 0.2 percent on the week.

Weaker than expected reports from Amazon and Ford pressured U.s. indexes lower.

The Dow Jones industrial average fell 140.19 points or 0.85 percent, to end at 16,361.46.

The S&P 500 dropped 15.21 points or 0.81 percent, to 1,863.40.

The Nasdaq Composite tumbled 72.777 points or 1.75 percent, to 4,075.561.

For the week, the Dow fell 0.3 percent, the S&P 500 dipped 0.1 percent and the Nasdaq lost 0.5 percent.