Canola closed another $1 lower Thursday after being a little higher in morning trade.
Early trade was based on thoughts that canola is undervalued compared to other oilseeds and on end user buying. Pressure came from commercial hedges and on technical selling
The loonie continued its slide, down 0.4 cent at noon but that didn’t stop the bleeding.
Canola is performing worse than other members of the oilseed complex. March canola dropped 14.35 percent between the open Dec. 2 and the close today.
In the same period March soybeans fell 3.3 percent and March soy oil fell 7.21 percent.
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The logistical problems moving the record large crop are expected to leave the canola market with burdensome ending stocks.
Hopefully there will be improvements in the rail and port system in the future. Today, the Canola Council of Canada set a new production goal of 26 million tonnes by 2025.
Nearby soybean contracts were up a bit on firm cash values and brisk exports to China. Deferred months closed down on expectations that Friday’s USDA reports will be bearish for corn and for 2014-15 soybeans. Follow our instant coverage of the USDA report on our twitter feeds @darcemcmillan and @westernproducer. We will post stories on the report at Producer.com.
Brazil’s government today nudged up its forecast of this year’s soybean crop to 90.33 million tonnes, from 90.03 million in the last forecast. It pegged the corn crop at 78.97 million tonnes, up from 78.78 million.
Things are also going well for soybeans in Argentina.
A climate consultant to the Buenos Aires Grains Exchange told Reuters that the rest of January and February are expected to get continuing rain.
The heat in December in Argentina likely hurt yield potential in corn, which develops earlier than soybeans, but the oilseed should have avoided damage.
USDA reported today that another 100,000 tonnes of American corn rejected by China has been resold to other Asian markets. Countries such as South Korea and Japan have been snapping up the shipments that are often offered at a discount.
USDA today said weekly corn export sales were below the range of analysts’ expectations.
Oats made a big move up today with March rising 18.25 cents to $3.9475 per bushel and May closing up 10.75 cents at $3.4675. At this rate, oats might become more expensive than corn soon. The futures price reflects the transportation issues.
The Canadian dollar fell to the lowest level since 2009 on several signs that the economy is struggling and will need an interest rate cut to spark growth.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jan 2014Â Â Â Â Â Â Â Â 420.10Â Â Â Â Â Â Â Â -1.00Â Â Â Â Â Â Â Â -0.24%
Canola Mar 2014Â Â Â Â Â Â Â Â 429.10Â Â Â Â Â Â Â Â -1.00Â Â Â Â Â Â Â Â -0.23%
Canola May 2014Â Â Â Â Â Â Â Â 438.20Â Â Â Â Â Â Â Â -0.80Â Â Â Â Â Â Â Â -0.18%
Canola Jul 2014Â Â Â Â Â Â Â Â 446.70Â Â Â Â Â Â Â Â -0.50Â Â Â Â Â Â Â Â -0.11%
Canola Nov 2014Â Â Â Â Â Â Â Â 460.50Â Â Â Â Â Â Â Â -0.40Â Â Â Â Â Â Â Â -0.09%
Milling Wheat Mar 2014Â Â Â Â Â Â Â Â 182.00Â Â Â Â Â Â Â Â +1.00Â Â Â Â Â Â Â Â +0.55%
Milling Wheat May 2014        187.00        unch        0.00%
Milling Wheat Jul 2014        190.00        unch        0.00%
Durum Wheat Mar 2014        243.00        unch        0.00%
Durum Wheat May 2014        247.00        unch        0.00%
Durum Wheat Jul 2014        248.00        unch        0.00%
Barley Mar 2014        146.00        unch        0.00%
Barley May 2014        148.00        unch        0.00%
Barley Jul 2014        148.00        unch        0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jan 2014Â Â Â Â Â Â Â Â 1296.25Â Â Â Â Â Â Â Â -4.5Â Â Â Â Â Â Â Â -0.35%
Soybeans Mar 2014Â Â Â Â Â Â Â Â 1273.75Â Â Â Â Â Â Â Â +4.5Â Â Â Â Â Â Â Â +0.35%
Soybeans May 2014Â Â Â Â Â Â Â Â 1255Â Â Â Â Â Â Â Â +4.5Â Â Â Â Â Â Â Â +0.36%
Soybeans Jul 2014Â Â Â Â Â Â Â Â 1240.5Â Â Â Â Â Â Â Â +3.5Â Â Â Â Â Â Â Â +0.28%
Soybeans Aug 2014Â Â Â Â Â Â Â Â 1204.5Â Â Â Â Â Â Â Â -0.5Â Â Â Â Â Â Â Â -0.04%
Soybeans Sep 2014Â Â Â Â Â Â Â Â 1142.5Â Â Â Â Â Â Â Â -2Â Â Â Â Â Â Â Â -0.17%
Soybean Meal Jan 2014Â Â Â Â Â Â Â Â 433Â Â Â Â Â Â Â Â +2.4Â Â Â Â Â Â Â Â +0.56%
Soybean Meal Mar 2014Â Â Â Â Â Â Â Â 414.3Â Â Â Â Â Â Â Â +1.8Â Â Â Â Â Â Â Â +0.44%
Soybean Meal May 2014Â Â Â Â Â Â Â Â 402.6Â Â Â Â Â Â Â Â +0.5Â Â Â Â Â Â Â Â +0.12%
Soybean Oil Jan 2014Â Â Â Â Â Â Â Â 37.74Â Â Â Â Â Â Â Â +0.31Â Â Â Â Â Â Â Â +0.83%
Soybean Oil Mar 2014Â Â Â Â Â Â Â Â 37.96Â Â Â Â Â Â Â Â +0.28Â Â Â Â Â Â Â Â +0.74%
Soybean Oil May 2014Â Â Â Â Â Â Â Â 38.28Â Â Â Â Â Â Â Â +0.27Â Â Â Â Â Â Â Â +0.71%
Corn Mar 2014Â Â Â Â Â Â Â Â 412Â Â Â Â Â Â Â Â -5Â Â Â Â Â Â Â Â -1.20%
Corn May 2014Â Â Â Â Â Â Â Â 420.25Â Â Â Â Â Â Â Â -5Â Â Â Â Â Â Â Â -1.18%
Corn Jul 2014Â Â Â Â Â Â Â Â 427.75Â Â Â Â Â Â Â Â -4.75Â Â Â Â Â Â Â Â -1.10%
Corn Sep 2014Â Â Â Â Â Â Â Â 434.25Â Â Â Â Â Â Â Â -4.75Â Â Â Â Â Â Â Â -1.08%
Corn Dec 2014Â Â Â Â Â Â Â Â 441.25Â Â Â Â Â Â Â Â -4.75Â Â Â Â Â Â Â Â -1.07%
Oats Mar 2014Â Â Â Â Â Â Â Â 394.75Â Â Â Â Â Â Â Â +18.25Â Â Â Â Â Â Â Â +4.85%
Oats May 2014Â Â Â Â Â Â Â Â 346.75Â Â Â Â Â Â Â Â +10.75Â Â Â Â Â Â Â Â +3.20%
Oats Jul 2014Â Â Â Â Â Â Â Â 327.75Â Â Â Â Â Â Â Â +5.75Â Â Â Â Â Â Â Â +1.79%
Oats Sep 2014Â Â Â Â Â Â Â Â 309.75Â Â Â Â Â Â Â Â -4.25Â Â Â Â Â Â Â Â -1.35%
Oats Dec 2014Â Â Â Â Â Â Â Â 303.75Â Â Â Â Â Â Â Â +0.25Â Â Â Â Â Â Â Â +0.08%
Wheat Mar 2014Â Â Â Â Â Â Â Â 584.25Â Â Â Â Â Â Â Â -4.5Â Â Â Â Â Â Â Â -0.76%
Wheat May 2014Â Â Â Â Â Â Â Â 589.5Â Â Â Â Â Â Â Â -5Â Â Â Â Â Â Â Â -0.84%
Wheat Jul 2014Â Â Â Â Â Â Â Â 594.25Â Â Â Â Â Â Â Â -4.25Â Â Â Â Â Â Â Â -0.71%
Wheat Sep 2014Â Â Â Â Â Â Â Â 604Â Â Â Â Â Â Â Â -4.25Â Â Â Â Â Â Â Â -0.70%
Wheat Dec 2014Â Â Â Â Â Â Â Â 617.75Â Â Â Â Â Â Â Â -3.75Â Â Â Â Â Â Â Â -0.60%
Minneapolis
Spring Wheat Mar 2014Â Â Â Â Â Â Â Â 629.25Â Â Â Â Â Â Â Â +2.25Â Â Â Â Â Â Â Â +0.36%
Spring Wheat May 2014        629.25        unch        0.00%
Spring Wheat Jul 2014Â Â Â Â Â Â Â Â 637.25Â Â Â Â Â Â Â Â +0.25Â Â Â Â Â Â Â Â +0.04%
Spring Wheat Sep 2014Â Â Â Â Â Â Â Â 644.75Â Â Â Â Â Â Â Â -1Â Â Â Â Â Â Â Â -0.15%
Spring Wheat Dec 2014Â Â Â Â Â Â Â Â 659Â Â Â Â Â Â Â Â -1.25Â Â Â Â Â Â Â Â -0.19%
Kansas City
KCBT Red Wheat Mar 2014Â Â Â Â Â Â Â Â 639Â Â Â Â Â Â Â Â +2Â Â Â Â Â Â Â Â +0.31%
KCBT Red Wheat May 2014Â Â Â Â Â Â Â Â 636Â Â Â Â Â Â Â Â -0.25Â Â Â Â Â Â Â Â -0.04%
KCBT Red Wheat Jul 2014Â Â Â Â Â Â Â Â 633Â Â Â Â Â Â Â Â -1.75Â Â Â Â Â Â Â Â -0.28%
KCBT Red Wheat Sep 2014Â Â Â Â Â Â Â Â 645Â Â Â Â Â Â Â Â -1.25Â Â Â Â Â Â Â Â -0.19%
KCBT Red Wheat Dec 2014Â Â Â Â Â Â Â Â 659.25Â Â Â Â Â Â Â Â -0.5Â Â Â Â Â Â Â Â -0.08%
Light crude oil nearby futures in New York dropped 67 cents at $91.66 US per barrel.
The Canadian dollar at noon was 92.16 cents US, down from 92.56 cents the previous trading day. The U.S. dollar at noon was $1.0851 Cdn.
In early unofficial tallies —
The Toronto Stock Exchange composite rose 14.79 points or 0.11 percent to 13,629.41.
The Dow Jones industrial average fell 17.98 points or 0.11 percent, to end at 16,444.76.
The S&P 500 gained 0.63 of a point or 0.03 percent, to finish at 1,838.12.
The Nasdaq Composite dropped 9.417 points or 0.23 percent, to close at 4,156.194.
