Canada’s agricultural markets update – June 27, 2014.

If a report fell in the forest but all the trees had already taken off for an extended Canada Day holiday, what sound would it make?

Probably the same almost inaudible “Paff” that greeted Statistics Canada’s seeded acreage report Friday, with little observable reaction to a report that found:

• more canola acres than expected, at 20.2 million

• fewer wheat acres, at 24.1 million

• many fewer barley acres, with a 14 percent decline to 6.1 million acres

• lots more green peas and more red lentils, while yellow peas and green lentils were unchanged

Traders and analysts were not greatly surprised by the StatsCan numbers and believed that weather conditions since the survey for the report was completed weeks ago are now more important for overall production than minor deviations from expected acreage. Continuing wet and cool weather is undermining the health of many western crops, and crop condition ratings have been falling, providing a backbone to prices.

July canola fell $7.60 per tonne to $486, while November fell $3.30 to $467.40, not much different to soybean oil’s futures decline and the rise of the Canadian dollar.

Over the week, July canola rose $11.80 per tonne or 2.5 percent while November rose $6 or 1.3 percent.

Minneapolis spring wheat rose four to six cents, similar to increases in both Kansas City and Chicago wheat.

Weak U.S. corn markets braced for a Monday U.S. Department of Agriculture report that was expected to predict a big crop coming to market in the fall. Corn prices weakened yet again.

Many U.S. crop markets have been weaker than western Canadian markets, with generally poor weather in Western Canada lowering traders’ crop size estimates, while generally favourable weather in the U.S. Midwest has bulked-up estimates of those crops.

Winnipeg ICE Futures Canada dollars per tonne

Canola Jul 2014 486.00 -7.60 -1.54%

Canola Nov 2014 467.40 -3.30 -0.70%

Canola Jan 2015 470.40 -3.80 -0.80%

Canola Mar 2015 470.30 -3.90 -0.82%

Canola May 2015 468.80 -4.70 -0.99%

Milling Wheat Jul 2014 200.00 +2.00

Milling Wheat Oct 2014 201.00 +2.00

Milling Wheat Dec 2014 205.00 +1.00

Durum Wheat Jul 2014 239.00 unch 0.00%

Durum Wheat Oct 2014 230.00 unch 0.00%

Durum Wheat Dec 2014 232.00 unch 0.00%

Barley Jul 2014 125.00 unch 0.00%

Barley Oct 2014 132.50 unch 0.00%

Barley Dec 2014 134.50 unch 0.00%

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

in cents US/pound

Chicago

Soybeans Jul 2014 1432 -5 -0.35%

Soybeans Aug 2014 1378 -3.75 -0.27%

Soybeans Sep 2014 1266 -13.75 -1.07%

Soybeans Nov 2014 1228 -16.25 -1.31%

Soybeans Jan 2015 1234 -16.25 -1.30%

Soybeans Mar 20151239.25 -15.75 -1.25%

Soybean Meal Jul 2014 469.8 +4.3 +0.92%

Soybean Meal Aug 2014 447.2 +1.4 +0.31%

Soybean Meal Sep 2014 414.4 -2.3 -0.55%

Soybean Oil Jul 2014 39.98 -0.53 -1.31%

Soybean Oil Aug 2014 40.13 -0.5 -1.23%

Soybean Oil Sep 2014 40.22 -0.5 -1.23%

Corn Jul 2014 443 +0.25 +0.06%

Corn Sep 2014 442.25 +3.25 +0.74%

Corn Dec 2014 447.25 +4 +0.90%

Corn Mar 2015 458 +4 +0.88%

Corn May 2015 464.75 +3.5 +0.76%

Oats Jul 2014 331.5 -4.75 -1.41%

Oats Sep 2014 327.75 -5.75 -1.72%

Oats Dec 2014 328.75 -3.25 -0.98%

Oats Mar 2015 325.75 -3.5 -1.06%

Oats May 2015 319 -5.5 -1.69%

Wheat Jul 2014 585.25 +3 +0.52%

Wheat Sep 2014 593.75 +9 +1.54%

Wheat Dec 2014 612.75 +8.75 +1.45%

Wheat Mar 2015 632.25 +8 +1.28%

Wheat May 2015 644.5 +8.25 +1.30%

Minneapolis

Spring Wheat Jul 2014 683 +4 +0.59%

Spring Wheat Sep 2014 692.5 +5.75 +0.84%

Spring Wheat Dec 2014 703.75 +5.75 +0.82%

Spring Wheat Mar 2015 714 +4.25 +0.60%

Spring Wheat May 2015 719.25 +2.5 +0.35%

Kansas City

KC HRW Wheat Jul 2014 726 +5 +0.69%

KC HRW Wheat Sep 2014 721.75 +7 +0.98%

KC HRW Wheat Dec 2014 726.5 +8.5 +1.18%

KC HRW Wheat Mar 2015 730.25 +8.5 +1.18%

KC HRW Wheat May 2015726.75 +8.25 +1.15%

Light crude oil nearby futures in New York dropped 10 cents at $105.74 US per barrel.

The Canadian dollar at noon was 93.67 cents US, up from 93.40 cents the

previous trading day. The U.S. dollar at noon was $1.0676 Cdn.

The Toronto Stock Exchange’s S&P/TSX composite index closed up 63.51 points, or 0.42 percent, at 15,094.25.

The Dow Jones industrial average rose 5.71 points or 0.03 percent, to end at 16,851.84.

The S&P 500 gained 3.74 points or 0.19 percent, to finish unofficially at 1,960.96.

The Nasdaq Composite advanced 18.88 points or 0.43 percent, to close unofficially at 4,397.93.

Stock indexes remained at or near record highs with investors uncertain about the continued strength of the U.S. economic revival and the unrest in Iraq and Ukraine.

On the week, the TSX composite fell 0.1 percent, the Dow fell 0.6 percent and the S&P 500 dipped 0.1 percent, while the Nasdaq added 0.7 percent.

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