Wheat markets take a tumble

Wheat headed lower as international markets appeared to be more robust than many analysts had thought. Even hard red spring types were under pressure as American exports ran into heavy competition from the European Union and Russia. It was largely suspected that Russian supplies were heavily depleted as local prices were on the rise, however export sales seem to indicate that was not the case. Despite lower prices, United States Department of Agriculture reports showed increasing wheat exports week over week.

On Chicago markets, hard red winter was off 16 cents per bushel for March, while Kansas City soft red wheat was down 20 cents. The Minneapolis contract, hard red spring, took less of a hit at just six cents down, likely based on tighter supplies of that quality. USDA reports are showing U.S. exports are down significantly from USDA expectations and that appears to be returning wheat market gains of the past month.

Canola too came under pressure today, tumbling $2.90 lower to $470.80 per tonne on the March ICE market. It was once again soybeans that were pulling on North American oilseeds, with soy oil leading the way down. Brazilian soybean harvest progress appears to be sending a message to buyers that American inventories will have to discounted to continue movement, despite promised Chinese sales.

It was that announcement over the weekend by Agriculture Secretary Sonny Perdue that created some positive buzz around beans, but even the intention of China purchasing another 10 million tonnes of product didn’t erase the other news or the effects of a giant domestic supply.

November canola contracts were hit hard, dropping $4.90 per tonne, to $489.10. July too was off, at $3.70 for $485.70 and May was down $3.70 to $485.70.

AgRural market consultants reported that Brazil’s soybean harvest is 20 percent ahead of the five year average, reaching 45 percent complete by Friday. Large producing state Mato Grosso is about 80 percent done, putting that product up for export immediately, fixing any availability issues that might been looming for China or other large buyers.

Corn was off as well on news that American exports, like wheat, were down from projected estimates. Prices were likely tied to wheat hard red spring and soft red wheat price declines.

While Russian wheat was still be exported, corn declined heavily in last week’s ending report.

Light crude oil nearby futures in New York was down $1.78 at US$55.48 per barrel.

In the afternoon, the Canadian dollar was trading around US75.91 cents, steady from 75.91 cents the previous trading day. The U.S. dollar was C$1.3174.

Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 19 470.80s -2.90 -0.61%
Canola May 19 477.90s -3.50 -0.73%
Canola Jul 19 485.70s -3.70 -0.76%
Canola Nov 19 489.10s -4.90 -0.99%
Canola Jan 20 494.80s -4.90 -0.98%

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.

Chicago
Soybean Mar 19 911-6s +1-4 +0.16%
Soybean May 19 925-0s +1-2 +0.14%
Soybean Jul 19 938-4s +1-2 +0.13%
Soybean Aug 19 944-2s +1-4 +0.16%
Soybean Sep 19 947-4s +1-4 +0.16%

Soybean Meal Mar 19 305.4s -0.2 -0.07%
Soybean Meal May 19 309.4s unch unch

Soybean Meal Jul 19 313.2s unch unch

Soybean Oil Mar 19 30.36s -0.15 -0.49%
Soybean Oil May 19 30.68s -0.17 -0.55%
Soybean Oil Jul 19 31.02s -0.18 -0.58%

Corn Mar 19 370-4s -4-6 -1.27%
Corn May 19 380-0s -4-4 -1.17%
Corn Jul 19 388-2s -4-2 -1.08%
Corn Sep 19 392-6s -3-6 -0.95%
Corn Dec 19 398-4s -3-2 -0.81%

Oats Mar 19 269-0s -2-0 -0.74%
Oats May 19 272-0s -2-2 -0.82%
Oats Jul 19 273-6s -1-0 -0.36%
Oats Sep 19 265-6s -1-0 -0.37%
Oats Dec 19 259-2s -1-0 -0.38%

Wheat Mar 19 466-6s -20-0 -4.11%
Wheat May 19 472-6s -19-0 -3.86%
Wheat Jul 19 477-6s -17-2 -3.48%
Wheat Sep 19 487-4s -17-0 -3.37%
Wheat Dec 19 501-4s -16-4 -3.19%

Minneapolis
Spring Wheat Mar 19 561-0s -5-6 -1.01%
Spring Wheat May 19 553-0s -11-4 -2.04%
Spring Wheat Jul 19 557-0s -11-0 -1.94%
Spring Wheat Sep 19 564-0s -10-0 -1.74%
Spring Wheat Dec 19 577-6s -9-0 -1.53%

Kansas City
Hard Red Wheat Mar 19 442-2s -16-2 -3.54%
Hard Red Wheat May 19 450-2s -15-6 -3.38%
Hard Red Wheat Jul 19 459-4s -14-6 -3.11%
Hard Red Wheat Sep 19 471-4s -15-0 -3.08%
Hard Red Wheat Dec 19 489-6s -14-4 -2.88%

Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Feb 19 128.550s -0.125 -0.10%
Live Cattle Apr 19 129.225s +0.350 +0.27%
Live Cattle Jun 19 119.600s +0.125 +0.10%

Feeder Cattle Mar 19 142.500s -0.400 -0.28%
Feeder Cattle Apr 19 145.650s +0.350 +0.24%
Feeder Cattle May 19 147.025s +0.175 +0.12%

Lean Hogs Apr 19 53.900s -1.550 -2.80%
Lean Hogs May 19 63.850s -1.625 -2.48%
Lean Hogs Jun 19 74.550s -1.350 -1.78%

Contact mike.raine@producer.com

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