Canola futures drift lower on weaker soy oil; US wheat still in good shape

Oilseeds edged lower on Tuesday, including canola, with soy oil posting the biggest declines.

May soy oil was down two percent while May canola fell only 0.19 percent.

The Canadian dollar at noon was down almost 0.8 cent against the American dollar and that helped limit the losses in canola.

Soy oil was pressure by a sharp drop in Malaysian palm oil, which fell on profit taking after a three-day rally.

Soybeans were under a little bit of pressure on ideas that wet weather in the southern Midwest might force growers to shift corn acres to faster maturing soybeans.

Recent price gains in soybeans relative to corn could also shift some farmers seeding plant to focus more on the oilseed.

The USDA, in its first national crop progress report of the year, rated 59 percent of U.S. winter wheat as being in good-to-excellent condition. That topped analysts’ estimates for 57.6 percent of the crop, which will be harvested this summer, and the five-year average of 42 percent.

Kansas State University extension agronomy posted an update April 1 commenting on the effects of the two freeze events in March on winter wheat.

It said the area most at risk was in the southern part of the state where the crop was more advanced.

There was leaf tissue damage in some counties and tiller loss also in some counties.

But overall, although it was still too early to give a definitive judgment on potential yield loss, the indication was that there not significant yield loss.

Of more concern is the extended dry weather in much of the state.

Southern Plains farmers are hoping that a long term forecast for significant rain in the middle part of this month proves true.

In the Canadian western Prairies, there is still almost no hope for significant moisture in the seven day forecast.

A lot of western Manitoba and east central Saskatchewan are getting moisture today and Wednesday. In eastern Saskatchewan five to 10 centimetre of snow is possible.

The Canadian stock market was pressured slightly lower by monthly reports showing a larger than expected trade deficit and smaller than expected exports in February, which tarnished the report last week that showed the economy grew much faster than expected in January.

U.S. stock markets were also lower as traders took profits after the recent strong run higher.

Light crude oil nearby futures in New York were up 19 cents to US$35.89 per barrel.

The Canadian dollar at noon was US75.93 cents, down from 76.71 cents the previous trading day. The U.S. dollar at noon was C$1.3170.

The Toronto Stock Exchange’s S&P/TSX composite index closed down 31.49 points, or 0.24 percent, at 13,304.66.

The Dow Jones industrial average dropped 0.75 percent to end at 17,603.32 and the S&P 500 lost 20.96 points to 2,045.17. The Nasdaq Composite fell 0.98 percent to 4,843.93.

Winnipeg ICE Futures Canada dollars per tonne

Canola May 2016 480.70 -0.90 -0.19%

Canola Jul 2016 486.00 -1.60 -0.33%

Canola Nov 2016 484.50 -1.70 -0.35%

Canola Jan 2017 488.60 -0.80 -0.16%

Canola Mar 2017 489.80 -0.70 -0.14%

Milling Wheat May 2016 240.00 -1.00 -0.41%

Milling Wheat Jul 2016 240.00 -1.00 -0.41%

Milling Wheat Oct 2016 237.00 -1.00 -0.42%

Durum Wheat May 2016 299.00 +1.00 +0.34%

Durum Wheat Jul 2016 293.00 +1.00 +0.34%

Durum Wheat Oct 2016 280.00 +1.00 +0.36%

Barley May 2016 172.00 unch 0.00%

Barley Jul 2016 174.00 unch 0.00%

Barley Oct 2016 174.00 unch 0.00%

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

Chicago

Soybeans May 2016 904.75 -8.75 -0.96%

Soybeans Jul 2016 912.75 -8.75 -0.95%

Soybeans Aug 2016 915.5 -8.75 -0.95%

Soybeans Sep 2016 915.75 -8.75 -0.95%

Soybeans Nov 2016 919.5 -9 -0.97%

Soybeans Jan 2017 924.25 -8.75 -0.94%

Soybean Meal May 2016 268.7 +0.5 +0.19%

Soybean Meal Jul 2016 271.2 +0.1 +0.04%

Soybean Meal Aug 2016 272.6 unch 0.00%

Soybean Oil May 2016 33.99 -0.7 -2.02%

Soybean Oil Jul 2016 34.25 -0.68 -1.95%

Soybean Oil Aug 2016 34.35 -0.68 -1.94%

Corn May 2016 356.75 +2.25 +0.63%

Corn Jul 2016 360 +2.25 +0.63%

Corn Sep 2016 363.75 +2 +0.55%

Corn Dec 2016 371 +2 +0.54%

Corn Mar 2017 381 +2 +0.53%

Oats May 2016 184.25 -2.75 -1.47%

Oats Jul 2016 192.75 -3.5 -1.78%

Oats Sep 2016 201.75 -4 -1.94%

Oats Dec 2016 211 -4 -1.86%

Oats Mar 2017 215.5 -4 -1.82%

Wheat May 2016 474 -0.75 -0.16%

Wheat Jul 2016 480.75 -0.5 -0.10%

Wheat Sep 2016 490.25 -0.5 -0.10%

Wheat Dec 2016 504.5 -0.25 -0.05%

Wheat Mar 2017 518.25 -0.25 -0.05%

Minneapolis

Spring Wheat May 2016 524.75 -4.5 -0.85%

Spring Wheat Jul 2016 533.25 -4.75 -0.88%

Spring Wheat Sep 2016 542.25 -4.75 -0.87%

Spring Wheat Dec 2016 554.75 -4.25 -0.76%

Spring Wheat Mar 2017 567 -4.25 -0.74%

Kansas City

Hard Red Wheat May 2016 473.5 -1.75 -0.37%

Hard Red Wheat Jul 2016 485 -1.5 -0.31%

Hard Red Wheat Sep 2016 499.25 -1.5 -0.30%

Hard Red Wheat Dec 2016 519.75 -1.75 -0.34%

Hard Red Wheat Mar 2017 532.25 -1.75 -0.33%

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