Spring wheat soars again, canola climbs with oilseeds

After trading as high as $6.93 a bushel, the Minneapolis September spring wheat contract closed at $6.86, up 17 ¼ cents or almost 2.6 percent on the day.

Spring wheat rose after the USDA on Monday lowered the good to excellent rating of the crop to 40 percent.

That was down from 41 percent the week before and below traders’ expectations for 41 percent.

Canola, soybeans and corn all rose, but more modestly, on the U.S. crop conditions.

The USDA rated 67 percent of the U.S. corn crop in good to excellent condition, unchanged from last week but below analysts’ expectations of 68 percent.

Soybeans were rated 66 percent good to excellent, down from 67 percent a week ago and surprising analysts who expected an improvement.

Also supporting U.S. prices was a weaker U.S. buck, which fell against the euro and other currencies when the European central bank said it might start to scale back its stimulus policies.

The weaker buck caused the loonie to rally near 76 cents, limiting the gains in canola.

WEATHER IMPACTS ON CROPS

This week’s Manitoba crop report said spraying and other field activities have been delayed by regular rain. More rain is in the forecast for the eastern Prairies over the next seven days with accumulations of more than an inch.

The western Prairies are expected to have only light accumulations of rain. Areas south of the TransCanada Highway from about Moose Jaw and west are getting very dry. Areas between Saskatoon and Moose Jaw are also quite dry.

• Crops in North and South Dakota and Montana are suffering drought stress. There is little moisture in the forecast and by July 4 temperatures in that region are expected to be in the mid 30s C.

• Large rain accumulations are expected over the next seven days in the much of the U.S. Midwest with southeastern Iowa getting as much as six inches.

• European analysts are trying to figure out the damage from last week’s heat wave in the western part of the continent. Some believe it took a toll while others believe the crop maturity was far enough along that it meant little.

Crop forecasters have slightly trimmed their production expectations, but the crop is still expected to be better than last year when cool and cloudy weather lowered yields.

• The drought area of Western Australia got some rain in the past week but for most areas the accumulation was not enough to make a significant improvement to crops.

The region is expected to be mostly dry for the rest of this week.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 86 cents US$44.24 per barrel.

In the afternoon, the Canadian dollar was trading around US75.94 cents, up from 75.49 cents the previous trading day. The U.S. dollar was C$1.3168.

The Toronto Stock Exchange’s S&P/TSX composite index fell 34.80 points, or 0.23 percent, to close at 15,281.22.

A delay in the U.S. health care bill vote in the Senate raised questions about the Republicans’ ability to move on the Trump agenda of cutting taxes and regulations.

The Dow Jones Industrial Average fell 98.89 points, or 0.46 percent, to 21,310.66, the S&P 500 lost 19.69 points, or 0.81 percent, to 2,419.38 and the Nasdaq Composite dropped 100.53 points, or 1.61 percent, to 6,146.62.

Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2017   512.70   +4.40   +0.87%
Canola Nov 2017   478.10   +4.00   +0.84%
Canola Jan 2018   483.90   +4.00   +0.83%
Canola Mar 2018   489.50   +4.00   +0.82%
Canola May 2018   493.20   unch   0.00%

Milling Wheat Jul 2017   286.00   +7.00   +2.51%
Milling Wheat Oct 2017   278.00   +6.00   +2.21%
Milling Wheat Dec 2017   281.00   +6.00   +2.18%

Durum Wheat Jul 2017   277.00   unch   0.00%
Durum Wheat Oct 2017   267.00   unch   0.00%

Durum Wheat Dec 2017   270.00   unch   0.00%

Barley Jul 2017   138.00   unch   0.00%
Barley Oct 2017   140.00   unch   0.00%
Barley Dec 2017   140.00   unch   0.00%

Soybeans Jul 2017   911.25   +4.50   +0.50%
Soybeans Aug 2017   916.00   +4.75   +0.52%
Soybeans Sep 2017   917.25   +4.75   +0.52%
Soybeans Nov 2017   917.50   +3.75   +0.41%
Soybeans Jan 2018   925.25   +3.50   +0.38%
Soybeans Mar 2018   932.00   +3.50   +0.38%

Soybean Meal Jul 2017   294.00   -0.10   -0.03%
Soybean Meal Aug 2017   295.80   -0.20   -0.07%
Soybean Meal Sep 2017   296.70   -0.10   -0.03%

Soybean Oil Jul 2017   32.08   +0.56   +1.78%
Soybean Oil Aug 2017   32.20   +0.55   +1.74%
Soybean Oil Sep 2017   32.33   +0.55   +1.73%

Corn Jul 2017   359.25   +0.25   +0.07%
Corn Sep 2017   367.75   +0.50   +0.14%
Corn Dec 2017   377.50   +0.50   +0.13%
Corn Mar 2018   387.50   +0.50   +0.13%
Corn May 2018   393.25   +0.25   +0.06%

Oats Jul 2017   246.50   -3.25   -1.30%
Oats Sep 2017   249.00   -2.25   -0.90%
Oats Dec 2017   253.75   -3.00   -1.17%
Oats Mar 2018   256.50   -1.50   -0.58%
Oats May 2018   256.25   -1.75   -0.68%

Wheat Jul 2017   453.25   +3.25   +0.72%
Wheat Sep 2017   469.00   +3.50   +0.75%
Wheat Dec 2017   491.25   +3.25   +0.67%
Wheat Mar 2018   506.75   +2.25   +0.45%
Wheat May 2018   517.75   +2.00   +0.39%

Spring Wheat Jul 2017   681.50   +17.75   +2.67%
Spring Wheat Sep 2017   686.00   +17.25   +2.58%
Spring Wheat Dec 2017   680.75   +14.25   +2.14%
Spring Wheat Mar 2018   675.75   +13.25   +2.00%
Spring Wheat May 2018   669.25   +11.75   +1.79%

Hard Red Wheat Jul 2017   457.25   +4.25   +0.94%
Hard Red Wheat Sep 2017   475.75   +4.25   +0.90%
Hard Red Wheat Dec 2017   501.50   +4.25   +0.85%
Hard Red Wheat Mar 2018   515.50   +3.75   +0.73%
Hard Red Wheat May 2018   524.00   +3.25   +0.62%

Live Cattle (P) Jun 2017   119.60   -1.88   -1.55%
Live Cattle (P) Aug 2017   115.02   -3.26   -2.76%
Live Cattle (P) Oct 2017   112.78   -2.50   -2.17%

Feeder Cattle (P) Aug 2017   144.88   -4.57   -3.06%
Feeder Cattle (P) Sep 2017   144.52   -4.38   -2.94%
Feeder Cattle (P) Oct 2017   142.98   -4.22   -2.87%

Lean Hogs (P) Jul 2017   86.48   -0.55   -0.63%
Lean Hogs (P) Aug 2017   78.55   -0.13   -0.17%
Lean Hogs (P) Oct 2017   67.65   -0.72   -1.05%

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