Strong U.S. soy, meal exports lift canola futures

By D’Arce McMillan, markets editor

Twitter @ darcemcmillan

Larger than expected weekly export sales of U.S. soy meal and soybeans advanced oilseed prices on Thursday.

Dec. soy meal soared 4.37 percent and March rose a little less than two percent. Gains in canola were muted, with November rising about a half percent and January up 0.44 percent.

Read Also

U.S. livestock: Cattle futures gain on higher beef values, tight supplies

Chicago | Reuters – Chicago Mercantile Exchange live cattle futures climbed for a third straight session on Tuesday, propelled by…

Early in the week the market indicated that the shortage of soy meal was being addressed, but concern fired up again today after the United States Department of Agriculture reported on export sales.

Exporters sold 307,600 tonnes of soy meal in the latest week, more than double the 150,600 tonnes of a week earlier.

Soybean export sales were 1.61 million tonnes, above the high end of forecasts ranging from 900,000 to 1.1 million tonnes.

The muted moves in canola were partly related to the fact that soy oil fell by more than a half percent. Lower crude oil weighed on vegetable oil.

There are signs that canola exports are active. There is a sizable inverse between the November and January contracts, however, buyers are basing their bids relative to the January contract. There were only 14 trades in November and more than 21,400 in the January contract.

American crop prices had to contend with a higher American buck, which tends to pressure prices lower.

The currency issue and slow weekly export sales weighed down wheat futures.

USDA reported export sales of U.S. wheat at 265,796 tonnes, below a range of trade estimates. Net sales of hard red winter wheat, at 11,842 tonnes, were the second-lowest of the marketing year.

The drop in wheat was limited by continuing concerns about Russia’s winter wheat crop. Russia has enjoyed warmer weather in recent days, following an early cold snap.

Andrey Sizov Jr., managing director of SovEcon told Reuters that even with the warmer weather much of the crop remains depressed and subject to higher than normal levels of winter kill.

SovEcon estimates that the harvest next year could fall to less than 90 million tonnes, down from about 108 million this year.

The wheat crop could fall to 50 million tonnes with exports at 16 to 18 million, down from 23 million forecast this year, Reuters reported.

Corn edged higher, following soybean’s lead.

The ICE Futures Canada barley contract saw a little trade today with the December contract rising $6 to $146 per tonne.

Light crude oil nearby futures in New York dropped 77 cents at US$77.91 per barrel.

The Canadian dollar at noon was US87.54 cents, down from 87.90 cents the previous trading day. The U.S. dollar at noon was C$1.1424.

The Dow and S&P 500 stock indexes closed at record highs on Thursday, helped by indications the European Central Bank would take more policy action if needed to boost a struggling euro zone economy, Reuters said.

The news was offset in Toronto by word from SNC-Lavalin Group Inc that it was cutting its profit outlook and shedding jobs.

In unofficial tallies —

The Toronto Stock Exchange’s S&P/TSX composite index closed up 15.12 points, or 0.1 percent, at 14,563.38.

The Dow Jones industrial average rose 69.87 points, or 0.4 percent, to 17,554.4, the S&P 500 gained 7.63 points, or 0.38 percent, to 2,031.2 and the Nasdaq Composite added 17.75 points, or 0.38 percent, to 4,638.47.

Winnipeg ICE Futures Canada dollars per tonne

Canola Nov 2014 452.70 +2.20 +0.49%

Canola Jan 2015 436.70 +1.90 +0.44%

Canola Mar 2015 433.20 +2.30 +0.53%

Canola May 2015 432.80 +2.00 +0.46%

Canola Jul 2015 432.30 +2.00 +0.46%

Milling Wheat Dec 2014 218.00 -1.00 -0.46%

Milling Wheat Mar 2015 224.00 -2.00 -0.88%

Milling Wheat May 2015 228.00 -2.00 -0.87%

Durum Wheat Dec 2014 356.50 unch 0.00%

Durum Wheat Mar 2015 357.50 unch 0.00%

Durum Wheat May 2015 357.50 unch 0.00%

Barley Dec 2014 146.00 +6.00 +4.29%

Barley Mar 2015 150.00 +7.00 +4.90%

Barley May 2015 150.00 +7.00 +4.90%

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

Chicago

Soybeans Nov 2014 1031 +10.5 +1.03%

Soybeans Jan 2015 1028 +8.75 +0.86%

Soybeans Mar 2015 1032.25 +8 +0.78%

Soybeans May 2015 1036.5 +7.25 +0.70%

Soybeans Jul 2015 1039.5 +6.5 +0.63%

Soybeans Aug 2015 1038.5 +5.25 +0.51%

Soybean Meal Dec 2014 391.7 +16.4 +4.37%

Soybean Meal Jan 2015 370 +12 +3.35%

Soybean Meal Mar 2015 350 +6.7 +1.95%

Soybean Oil Dec 2014 32.53 -0.19 -0.58%

Soybean Oil Jan 2015 32.68 -0.22 -0.67%

Soybean Oil Mar 2015 32.86 -0.25 -0.76%

Corn Dec 2014 371.25 +1 +0.27%

Corn Mar 2015 384 +1 +0.26%

Corn May 2015 392.75 +1 +0.26%

Corn Jul 2015 399.75 +1.25 +0.31%

Corn Sep 2015 406.5 +1.75 +0.43%

Oats Dec 2014 335.75 -4.75 -1.40%

Oats Mar 2015 331.25 -2.75 -0.82%

Oats May 2015 329.75 -1.5 -0.45%

Oats Jul 2015 325 -1 -0.31%

Oats Sep 2015 326.5 -1.25 -0.38%

Wheat Dec 2014 520.25 -4.5 -0.86%

Wheat Mar 2015 532 -4.25 -0.79%

Wheat May 2015 539.5 -3.5 -0.64%

Wheat Jul 2015 546 -4 -0.73%

Wheat Sep 2015 555.5 -4 -0.71%

Minneapolis

Spring Wheat Dec 2014 554 -5.75 -1.03%

Spring Wheat Mar 2015 567.5 -4.25 -0.74%

Spring Wheat May 2015 576.75 -4.75 -0.82%

Spring Wheat Jul 2015 586.5 -4.75 -0.80%

Spring Wheat Sep 2015 596 -4.5 -0.75%

Kansas City

Hard Red Wheat Dec 2014 579 -5.5 -0.94%

Hard Red Wheat Mar 2015 582.5 -5.25 -0.89%

Hard Red Wheat May 2015 585 -4.75 -0.81%

Hard Red Wheat Jul 2015 581 -5 -0.85%

Hard Red Wheat Sep 2015 592 -5 -0.84%

Your reading list