By D’Arce McMillan
Markets Editor
July spring wheat futures jumped more than two percent Wednesday, supported by excess moisture on the Northern Plains and disappointing early harvest results in Kansas winter wheat.
Canola also rose, along with most crop futures.
Slow farmer selling, stronger global vegetable oil values and concerns about heavy rain in Alberta and elsewhere all supported canola.
Southwestern Alberta received the largest amount of rain.
The lack of producer deliveries is mostly supporting July canola, which is now at a $15.60 premium over November.
Corn and soybeans climbed, mostly on thoughts prices had fallen well into technically oversold territory and impressions that the price had already settled to a level reflective of the record size crops expected from the U.S.
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Very low wheat yield last week were noted In Texas and Oklahoma and as the harvest moves north, the early results in Kansas are also a disappointment.
Kansas Wheat Commission said in its first harvest report of the season that early yields in far southern Kansas were averaging about 10 to 12 bushels per acre, far below the U.S. Department of Agriculture’s statewide Kansas yield estimate of 29 bushels per acre.
Also, rain is interfering with harvest progress in the southern Plains.
This overall grain and oilseed rally might not go very far. The adage “rain makes grain” usually holds true and if we can get some sun and warmer temperatures in the Midwest and northern Plains, crops should do well thanks to all this moisture.
The harvest of winter crops in Europe will soon get underway. Production is expected to be good.
The Toronto Stock Exchange composite index closed at a record high today, supported by stronger crude oil prices and statements from the Federal Reserve about interest rates that gave the market confidence.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2014 478.80 +8.00 +1.70%
Canola Nov 2014 463.20 +5.70 +1.25%
Canola Jan 2015 468.90 +5.30 +1.14%
Canola Mar 2015 471.90 +5.00 +1.07%
Canola May 2015 474.20 +5.00 +1.07%
Milling Wheat Jul 2014 205.00 +4.00 +1.99%
Milling Wheat Oct 2014 206.00 +4.00 +1.98%
Milling Wheat Dec 2014 210.00 +4.00 +1.94%
Durum Wheat Jul 2014 239.00 unch 0.00%
Durum Wheat Oct 2014 230.00 unch 0.00%
Durum Wheat Dec 2014 232.00 unch 0.00%
Barley Jul 2014 125.00 unch 0.00%
Barley Oct 2014 132.50 unch 0.00%
Barley Dec 2014 134.50 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jul 2014 1409 +10.75 +0.77%
Soybeans Aug 2014 1357.25 +8.75 +0.65%
Soybeans Sep 2014 1249.5 +5.5 +0.44%
Soybeans Nov 2014 1213 +1 +0.08%
Soybeans Jan 2015 1220 +1.25 +0.10%
Soybeans Mar 2015 1226.25 +1.5 +0.12%
Soybean Meal Jul 2014 453.2 +2.5 +0.55%
Soybean Meal Aug 2014 436.2 +3.7 +0.86%
Soybean Meal Sep 2014 410.6 +0.4 +0.10%
Soybean Oil Jul 2014 40.13 +0.45 +1.13%
Soybean Oil Aug 2014 40.24 +0.44 +1.11%
Soybean Oil Sep 2014 40.25 +0.41 +1.03%
Corn Jul 2014 441.5 +2.75 +0.63%
Corn Sep 2014 435.5 +1.5 +0.35%
Corn Dec 2014 439.5 unch 0.00%
Corn Mar 2015 449.75 -0.5 -0.11%
Corn May 2015 457.25 unch 0.00%
Oats Jul 2014 342.75 +4.5 +1.33%
Oats Sep 2014 331.75 +1.5 +0.45%
Oats Dec 2014 331.75 +3 +0.91%
Oats Mar 2015 328.75 +3 +0.92%
Oats May 2015 325.75 +3 +0.93%
Wheat Jul 2014 587 +5.25 +0.90%
Wheat Sep 2014 596.25 +5.5 +0.93%
Wheat Dec 2014 617.75 +5.75 +0.94%
Wheat Mar 2015 636.75 +5.25 +0.83%
Wheat May 2015 649.25 +5.75 +0.89%
Minneapolis
Spring Wheat Jul 2014 697.25 +13.5 +1.97%
Spring Wheat Sep 2014 701.5 +10.75 +1.56%
Spring Wheat Dec 2014 712.75 +10.25 +1.46%
Spring Wheat Mar 2015 721.25 +8.75 +1.23%
Spring Wheat May 2015 726.25 +8.75 +1.22%
Kansas City
KC HRW Wheat Jul 2014 727.75 +15.25 +2.14%
KC HRW Wheat Sep 2014 727.25 +14.5 +2.03%
KC HRW Wheat Dec 2014 733.75 +12 +1.66%
KC HRW Wheat Mar 2015 736 +10.75 +1.48%
KC HRW Wheat May 2015 732.75 +10.25 +1.42%
Light crude oil nearby futures in New York dropped 39 cents at $105.97 US per barrel.
The Canadian dollar at noon was 92 cents US, down from 92.15 cents the previous trading day. The U.S. dollar at noon was $1.0870 Cdn.
Reuters said the Federal Reserve hinted at a slightly faster pace of interest rate increases starting next year but suggested rates in the long-run would be lower than it had indicated previously.
In early unofficial tallies —
The Toronto Stock Exchange’s S&P/TSX composite index closed up 53.36 points, or 0.35 percent, at a record 15,109.25.
The Dow Jones industrial average rose 98.13 points or 0.58 percent, to end at 16,906.62.
The S&P 500 gained 14.99 points or 0.77 percent, to finish at 1,956.98, eclipsing the previous record set on June 9.
The Nasdaq Composite added 25.60 points or 0.59 percent, to close at 4,362.84.
