Canada’s agricultural markets update, May 30, 2014

Canola futures closed lower Friday, capping a week that saw sharp losses on old and new crop futures.

Weaker soy oil, long liquidation and lack of buying all weighed on canola.

Although seeding on the eastern side of the Canadian Prairies is lagging the long-term averages, there was progress and that also weighed on canola.

The Canadian Oilseed Processors Association said members crushed only 115,818 tonnes of canola in the week ending May 28, down almost 24 percent from the week before. That was a capacity use of only about 65 percent compared to the average for the year to date of 81 percent.

On the week, July canola fell $29.20 per tonne or six percent.

November fell $20.90 a tonne, or 4.3 percent.

But basis levels have narrowed, helping to limit the impact on the cash price.

The forecast for the weekend for much of the Prairies was fair, but southern Saskatchewan and Alberta, southern of the TransCanada Highway could get some rain

July soybeans settled lower on Friday and posted a 1.5 percent decline on the week on profit talking after the price climbed well above $15 per bushel last week.

New crop soybeans were under additional pressure Friday as the weather outlook is good for seeding and crop development in the U.S Midwest.

Soybean oil was hammered 2.3 percent lower on soy meal-soy oil spread trading.

Chicago wheat fell for the eighth straight session on favourable weather in the U.S. and perceptions that U.S. wheat is overpriced relative to Black Sea and European sources.

While the hard red winter wheat crop has severe problems, the soft red winter wheat crop in the Midwest looks good.

Soft wheat crops in France are progressing ahead of pace, with prospects for an early harvest.

The market is keeping an eye on southern Russia where there are concerns about moisture but the region did get some rain this week.

Corn fell again on good Midwest weather. Corn futures fell about nine percent in May.

 

Winnipeg ICE Futures Canada dollars per tonne

 

Canola Jul 2014       458.30       -6.00       -1.29%

Canola Nov 2014       464.90       -3.40       -0.73%

Canola Jan 2015       470.40       -3.40       -0.72%

Canola Mar 2015       472.80       -3.40       -0.71%

Canola May 2015       474.20       -3.60       -0.75%

 

Milling Wheat Jul 2014       214.00       -3.00       -1.38%

Milling Wheat Oct 2014       214.00       -3.00       -1.38%

Milling Wheat Dec 2014       218.00       -3.00       -1.36%

 

Durum Wheat Jul 2014       252.00       unch       0.00%

Durum Wheat Oct 2014       243.00       unch       0.00%

Durum Wheat Dec 2014       245.00       unch       0.00%

 

Barley Jul 2014       150.00       unch       0.00%

Barley Oct 2014       150.00       unch       0.00%

Barley Dec 2014       152.00       unch       0.00%

 

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

 

Chicago

Soybeans Jul 2014       1493.25       -5.75       -0.38%

Soybeans Aug 2014       1424.5       -8.25       -0.58%

Soybeans Sep 2014       1285.75       -10.75       -0.83%

Soybeans Nov 2014       1233.75       -10.5       -0.84%

Soybeans Jan 2015       1239.5       -10.5       -0.84%

Soybeans Mar 2015       1243.25       -10.25       -0.82%

 

Soybean Meal Jul 2014       500.2       +1.8       +0.36%

Soybean Meal Aug 2014       473.9       +1       +0.21%

Soybean Meal Sep 2014       436.1       -0.1       -0.02%

 

Soybean Oil Jul 2014       38.5       -0.91       -2.31%

Soybean Oil Aug 2014       38.61       -0.9       -2.28%

Soybean Oil Sep 2014       38.68       -0.91       -2.30%

 

Corn Jul 2014       465.75       -3.75       -0.80%

Corn Sep 2014       458       -5.25       -1.13%

Corn Dec 2014       457.5       -5.5       -1.19%

Corn Mar 2015       466.5       -6       -1.27%

Corn May 2015       473       -5.75       -1.20%

 

Oats Jul 2014       371       +9.5       +2.63%

Oats Sep 2014       352.75       +5.75       +1.66%

Oats Dec 2014       331.5       +4       +1.22%

Oats Mar 2015       326.25       +3       +0.93%

Oats May 2015       321.5       +2.25       +0.70%

 

Wheat Jul 2014       627.25       -5.25       -0.83%

Wheat Sep 2014       639.75       -4.75       -0.74%

Wheat Dec 2014       660.5       -3.25       -0.49%

Wheat Mar 2015       677.25       -2.5       -0.37%

Wheat May 2015       686       -2.25       -0.33%

 

Minneapolis

Spring Wheat Jul 2014       706.5       -8       -1.12%

Spring Wheat Sep 2014       715       -7.5       -1.04%

Spring Wheat Dec 2014       725       -6.75       -0.92%

Spring Wheat Mar 2015       732       -7.25       -0.98%

Spring Wheat May 2015       735       -7.75       -1.04%

 

Kansas City

KC HRW Wheat Jul 2014       723       -7.5       -1.03%

KC HRW Wheat Sep 2014       730.75       -7.5       -1.02%

KC HRW Wheat Dec 2014       742       -8.25       -1.10%

KC HRW Wheat Mar 2015       748       -7       -0.93%

KC HRW Wheat May 2015       745.75       -8       -1.06%

Light crude oil nearby futures in New York dropped 87 cents at $102.71 US per barrel.

The Canadian dollar at noon was 92.02 cents US, down from 92.28 cents the previous trading day. The U.S. dollar at noon was $1.0867 Cdn.

Canada’s economy grew 1.2 percent, annualized, in the first quarter, down from 2.7 percent in the final quarter of last year, said Statistics Canada. The market expected 1.8 percent.

The U.S. economy also performed below expectations in the first quarter, but many economists expect a rebound in the second quarter.

In early unofficial tallies —

The Toronto Stock Exchange’s S&P/TSX composite index closed up 10.70 points, or 0.07 percent, at 14,599.65.

The Dow Jones industrial average rose 18.43 points or 0.11 percent, to 16,717.17.

The S&P 500 gained 3.54 points or 0.18 percent, to 1,923.57.

The Nasdaq Composite fell 5.33 points or 0.13 percent, to 4,242.62.

Friday’s gain lifted the Dow above its previous record close of 16,715.44 set on May 13.

For the week, the TSX composite fell 0.7 percent, the Dow rose 0.7 percent, the S&P 500 gained 1.2 percent, and the Nasdaq climbed 1.4 percent.