Farmer selling after Monday’s sharp rise pressured canola early on Tuesday and then a late morning forecast for better rain coverage in the Midwest caused a further decline.
Traders were taking profits in canola, soybeans and corn after the several day weather rally pushed soybeans to an 11-month high.
In addition to the improved rain prospects, the latest weather forecast also called for cooler weather, including the possiblity of frost Sept. 10 in Minnesota east to the Great Lakes. Drew Lerner has been talking about a potential frost around that date.
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The potential of a record canola crop in Canada continues to limit canola prices, but the chance of frost hitting while it still can do major damage highlights the need to keep a weather risk margin in the market.
The 14-day forecast from the Weather Network shows cooler temperatures in the Canadian Prairies on Sept. 10 with highs in the mid teens but the lows are still at around eight C, well above the frost level.
Grain markets also faced pressure from outside markets today. Stocks markets fell and oil rose about three percent on rising international calls for a military strike against the Syrian government after a chemical weapons attack against civilians.
The United States, Britain, France Canada and the Arab League are advocating a firm response. But Russia stands by the regime of Syrian president Bashar al-Assad making it unlikely that the United Nations security council would approve of a military strike.
Reuters reported that China Grain Reserves Corp. (Sinograin) said it is investigating whether local crushers profited by selling oil processed from cheaper imported rapeseed instead of from domestic supplies as Beijing’s subsidy program stipulates.
The probe underscores the potential for manipulation of China’s farm products stockpiling program, where a minimum purchase price set by Beijing to support farmers has caused local prices to be artificially higher than international prices, Reuters reported.
To profit more from the subsidies, local crushers have sold edible oils processed from imported rapeseed to Sinograin, the state reserve agency, as overseas supplies, mostly from Canada, were cheaper, local publication the 21st Century Herald first reported last week.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2013 529.70 -8.30 -1.54%
Canola Jan 2014 535.90 -7.60 -1.40%
Canola Mar 2014 541.70 -7.50 -1.37%
Canola May 2014 545.00 -7.30 -1.32%
Canola Jul 2014 546.50 -7.70 -1.39%
Milling Wheat Oct 2013 257.00 unch 0.00%
Milling Wheat Dec 2013 262.00 unch 0.00%
Milling Wheat Mar 2014 26700 unch 0.00%
Durum Wheat Oct 2013 284.00 unch 0.00%
Durum Wheat Dec 2013 286.00 unch 0.00%
Durum Wheat Mar 2014 293.00 unch 0.00%
Barley Oct 2013 189.00 unch 0.00%
Barley Dec 2013 194.00 unch 0.00%
Barley Mar 2014 194.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Sep 2013 1414 -13.75 -0.96%
Soybeans Nov 2013 1370.5 -19 -1.37%
Soybeans Jan 2014 1365.5 -21.5 -1.55%
Soybeans Mar 2014 1335.75 -17.25 -1.27%
Soybeans May 2014 1307.75 -11 -0.83%
Soybeans Jul 2014 1302.75 -11.75 -0.89%
Soybean Meal Sep 2013 455.9 -2.7 -0.59%
Soybean Meal Oct 2013 432.8 -5.5 -1.25%
Soybean Meal Dec 2013 430.4 -6.3 -1.44%
Soybean Oil Sep 2013 44.06 -0.38 -0.86%
Soybean Oil Oct 2013 44.21 -0.35 -0.79%
Soybean Oil Dec 2013 44.52 -0.36 -0.80%
Corn Sep 2013 499.75 -16 -3.10%
Corn Dec 2013 486.25 -14.25 -2.85%
Corn Mar 2014 498.75 -13.75 -2.68%
Corn May 2014 506.25 -13.75 -2.64%
Corn Jul 2014 511.5 -13.5 -2.57%
Oats Sep 2013 363.75 +10 +2.83%
Oats Dec 2013 349.75 +5 +1.45%
Oats Mar 2014 354 +5.25 +1.51%
Oats May 2014 357.25 +6.5 +1.85%
Oats Jul 2014 348.75 +6.5 +1.90%
Wheat Sep 2013 650.75 -4 -0.61%
Wheat Dec 2013 663.75 -3 -0.45%
Wheat Mar 2014 675.5 -3.25 -0.48%
Wheat May 2014 682.75 -3 -0.44%
Wheat Jul 2014 677 -3.5 -0.51%
Minneapolis
Spring Wheat Sep 2013 729.5 +0.25 +0.03%
Spring Wheat Dec 2013 737 -0.75 -0.10%
Spring Wheat Mar 2014 748.75 -1 -0.13%
Spring Wheat May 2014 756.75 +0.75 +0.10%
Spring Wheat Jul 2014 761 -1.5 -0.20%
Kansas City
KCBT Red Wheat Sep 2013 707.25 -1 -0.14%
KCBT Red Wheat Dec 2013 711 -2.25 -0.32%
KCBT Red Wheat Mar 2014 718.5 -3.5 -0.48%
KCBT Red Wheat May 2014 723.25 -2.5 -0.34%
KCBT Red Wheat Jul 2014 713.25 -1.75 -0.24%
Light crude oil nearby futures in New York rose $3.09 at $109.01 US per barrel.
The Canadian dollar at noon was 95.21 cents US, up from 95.11 cents the previous trading day. The U.S. dollar at noon was $1.0503 Cdn.
The Toronto Stock Exchange composite fell 169.08 points, or 1.32 percent to 12,591.21.
The Dow Jones industrial average fell 170.40 points, or 1.14 percent, closing at 14,776.06.
The Standard & Poor’s 500 Index fell 26.30 points, or 1.59 percent, to 1,630.48.
The Nasdaq Composite Index dropped 79.05 points, or 2.16 percent, to 3,578.52.
