Currency issues again dominate grain markets

Foreign exchange shifts were again a big mover in crop futures markets on Thursday with the euro falling and the U.S. buck climbing.

Canola futures were still catching up with yesterday’s big drop in the Canadian loonie. March closed at $462.20, up $3.40.

Speculators did most of the buying in canola. Farmer selling ticked up to limit the gains.

March canola has an $8.80 premium over May. Some grain companies are already pricing their bids off the May contract.

Soybeans, soy oil, corn and wheat all fell today.

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On Wednesday, the Bank of Canada shocked markets with a quarter percentage point drop in the overnight lending rate. That knocked the loonie down about two cents yesterday. Today the loonie was little change.

It was the European central bank’s turn to surprise today with a one trillion euro stimulus plan. It will start buying bond just like the U.S. Federal Reserve did to inject money into the moribund economy.

A stimulus package was anticipated, but the size was larger than expected.

The package caused the euro to sag against the U.S. dollar.

As the U.S. buck gains on most world currencies, it makes U.S. crops less attractive in the global marketplace and depresses U.S. crop prices.

Also weighing on corn and soybeans were generally favourable weather in South America and lower crude oil values.

Crude fell after the U.S. Energy Information Administration announced the largest increase in U.S. crude stocks in at least 14 years.

Soy oil futures were down as the decline in the loonie makes Canadian canola oil more competitive.

Wheat futures fell on the stronger U.S. dollar and prospects for slow exports.

The trade expects USDA’s weekly export sales report due Friday to show weekly U.S. wheat sales for 2014-15 at 200,000 400,000 tonnes.

Mildly supporting was news that Ukraine’s agriculture ministry reached a preliminary agreement with traders to limit milling wheat exports to 1.2 million tonnes in January through June, traders told Reuters.

Light crude oil nearby futures in New York were down $1.47 to US$46.31 per barrel.

The Canadian dollar at noon was US80.83 cents, up from 80.81 cents the previous trading day. The U.S. dollar at noon was C$1.2371.

The Toronto Stock Exchange’s S&P/TSX composite index closed up 203.56 points, or 1.4 percent, at 14,763.98.

The Dow Jones industrial average rose 259.7 points, or 1.48 percent, to 17,813.98, the S&P 500gained 31.03 points, or 1.53 percent, to 2,063.15 and the Nasdaq Composite added 82.98 points, or 1.78 percent, to 4,750.40

Winnipeg ICE Futures Canada dollars per tonne

Canola Mar 2015 462.20 +3.40 +0.74%

Canola May 2015 453.40 +3.60 +0.80%

Canola Jul 2015 447.30 +4.30 +0.97%

Canola Nov 2015 436.80 +3.20 +0.74%

Canola Jan 2016 438.10 +2.20 +0.50%

Milling Wheat Mar 2015 220.00 +6.00 +2.80%

Milling Wheat May 2015 223.00 +6.00 +2.76%

Milling Wheat Jul 2015 225.00 +5.00 +2.27%

Durum Wheat Mar 2015 363.00 +2.00 +0.55%

Durum Wheat May 2015 353.00 +2.00 +0.57%

Durum Wheat Jul 2015 343.00 +2.00 +0.59%

Barley Mar 2015 195.00 unch 0.00%

Barley May 2015 197.00 unch 0.00%

Barley Jul 2015 199.00 unch 0.00%

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

Chicago

Soybeans Mar 2015 976.75 -6.75 -0.69%

Soybeans May 2015 983 -6.5 -0.66%

Soybeans Jul 2015 988.75 -5.75 -0.58%

Soybeans Aug 2015 988.75 -5.25 -0.53%

Soybeans Sep 2015 973.25 -4.75 -0.49%

Soybeans Nov 2015 961 -4.75 -0.49%

Soybean Meal Mar 2015 330.1 -0.4 -0.12%

Soybean Meal May 2015 322.6 -0.1 -0.03%

Soybean Meal Jul 2015 321.2 -0.1 -0.03%

Soybean Oil Mar 2015 31.97 -0.44 -1.36%

Soybean Oil May 2015 32.16 -0.42 -1.29%

Soybean Oil Jul 2015 32.35 -0.41 -1.25%

Corn Mar 2015 383.75 -4.25 -1.10%

Corn May 2015 392 -3.75 -0.95%

Corn Jul 2015 399.25 -3.25 -0.81%

Corn Sep 2015 405.25 -3 -0.73%

Corn Dec 2015 413.25 -2.25 -0.54%

Oats Mar 2015 291 +0.25 +0.09%

Oats May 2015 294.75 +0.75 +0.26%

Oats Jul 2015 299.25 +0.5 +0.17%

Oats Sep 2015 301 +0.5 +0.17%

Oats Dec 2015 298.25 +1 +0.34%

Wheat Mar 2015 533.75 -3 -0.56%

Wheat May 2015 537.25 -2.75 -0.51%

Wheat Jul 2015 540.75 -2.75 -0.51%

Wheat Sep 2015 548.5 -2.75 -0.50%

Wheat Dec 2015 560.25 -2.25 -0.40%

Minneapolis

Spring Wheat Mar 2015 575.5 -5.5 -0.95%

Spring Wheat May 2015 581.75 -5.5 -0.94%

Spring Wheat Jul 2015 590.25 -4.75 -0.80%

Spring Wheat Sep 2015 597.75 -4.5 -0.75%

Spring Wheat Dec 2015 607.75 -3.25 -0.53%

Kansas City

Hard Red Wheat Mar 2015 564.75 -7.5 -1.31%

Hard Red Wheat May 2015 569.5 -6.75 -1.17%

Hard Red Wheat Jul 2015 573 -6.5 -1.12%

Hard Red Wheat Sep 2015 584.25 -6 -1.02%

Hard Red Wheat Dec 2015 598.5 -6.25 -1.03%

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