A rule change in the United States that makes it easier for biofuel makers in Argentina to selll their product in the United States slammed soy oil future down and canola also fell hard.
The Argentine biodiesel will more easily compete with American biodiesel and reduce the demand for soy oil. Soy oil fell about 2.7 percent to the lowest level in nearly six years.
Canola follows soy oil closely and, as it fell it triggered further speculative selling. The weak loonie limited the decline.
It was a generally down day on crop markets.
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ICE Canada Weekly: Canola looking at C$580
Without the Chinese market, it’s only a matter of time before canola futures are poised to break below C$600 per tonne in its November contract, said Phil Speiss, trader with RBC Dominion Securities in Winnipeg.
Nearby wheat futures fell two percent or more on forecasts for beneficial rain in the southern Plains where hard red winter wheat is grown.
Also, the strong American dollar is making U.S. wheat uncompetitive on the world market.
The same issue weighs on corn futures, which also fell more than two percent. U.S. corn faces strong competition from Ukraine.
Also, falling gasoline prices are reducing demand for ethanol.
Light crude oil nearby futures in New York were down $1.78 to US$44.45 per barrel.
The Canadian dollar at noon was US80.31 cents, down from US80.62 cents the previous trading day. The U.S. dollar at noon was C$1.2451.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2015 449.80 -9.80 -2.13%
Canola May 2015 445.40 -9.70 -2.13%
Canola Jul 2015 441.50 -7.40 -1.65%
Canola Nov 2015 428.20 -6.90 -1.59%
Canola Jan 2016 429.90 -6.90 -1.58%
Milling Wheat Mar 2015 213.00 -4.00 -1.84%
Milling Wheat May 2015 216.00 -4.00 -1.82%
Milling Wheat Jul 2015 219.00 -4.00 -1.79%
Durum Wheat Mar 2015 363.00 unch 0.00%
Durum Wheat May 2015 353.00 unch 0.00%
Durum Wheat Jul 2015 343.00 unch 0.00%
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 970.25 -3.5 -0.36%
Soybeans May 2015 977.25 -4 -0.41%
Soybeans Jul 2015 983 -4 -0.41%
Soybeans Aug 2015 983 -4.25 -0.43%
Soybeans Sep 2015 969.25 -4.25 -0.44%
Soybeans Nov 2015 958.25 -4.5 -0.47%
Soybean Meal Mar 2015 337.4 +0.8 +0.24%
Soybean Meal May 2015 329.9 +1.1 +0.33%
Soybean Meal Jul 2015 327.6 +1.1 +0.34%
Soybean Oil Mar 2015 30.34 -0.83 -2.66%
Soybean Oil May 2015 30.57 -0.8 -2.55%
Soybean Oil Jul 2015 30.78 -0.79 -2.50%
Corn Mar 2015 373.25 -8 -2.10%
Corn May 2015 381.5 -8.25 -2.12%
Corn Jul 2015 389 -8 -2.02%
Corn Sep 2015 395.75 -7.75 -1.92%
Corn Dec 2015 404.25 -7 -1.70%
Oats Mar 2015 287.5 -1.75 -0.61%
Oats May 2015 290 -2.75 -0.94%
Oats Jul 2015 294.75 -2.5 -0.84%
Oats Sep 2015 299.5 -0.5 -0.17%
Oats Dec 2015 297.25 +0.25 +0.08%
Wheat Mar 2015 505.25 -13.75 -2.65%
Wheat May 2015 510.25 -12.75 -2.44%
Wheat Jul 2015 516 -12.75 -2.41%
Wheat Sep 2015 524.75 -12.5 -2.33%
Wheat Dec 2015 537.25 -11.75 -2.14%
Minneapolis
Spring Wheat Mar 2015 555 -11.5 -2.03%
Spring Wheat May 2015 562.75 -11 -1.92%
Spring Wheat Jul 2015 571 -11.75 -2.02%
Spring Wheat Sep 2015 579.75 -11 -1.86%
Spring Wheat Dec 2015 590.5 -10 -1.67%
Kansas City
Hard Red Wheat Mar 2015 535.75 -14.5 -2.64%
Hard Red Wheat May 2015 541.75 -14 -2.52%
Hard Red Wheat Jul 2015 547.25 -12.75 -2.28%
Hard Red Wheat Sep 2015 559.5 -12.75 -2.23%
Hard Red Wheat Dec 2015 573.75 -13 -2.22%
