Crop markets close lower Wednesday

ICE Canada canola futures dropped on Wednesday, pressured by lower soy prices and pulling back after notching a seven-month high in the previous session.

U.S. wheat tumbled as much as two percent on Wednesday, with benchmark Chicago Board of Trade futures falling the most in a week.

Top global wheat importer Egypt cancelled a tender seeking supplies from the United States

Overbought technical conditions and profit-taking also pressured prices, with corn and soybeans each declining more than one percent at the Chicago Board of Trade

“When you have an oversupply or a strong supply, the path of least resistance is lower,” Jefferies Bache analyst Shawn McCambridge said

CBOT wheat fell to session lows after the midmorning news that Egypt’s state grain buyer had cancelled a rare tender seeking offers of only U.S. wheat for April arrival. The tender came after the United States extended a credit line of $100 million to Egypt

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However, with U.S. wheat still uncompetitive into Egypt, the tender was cancelled. The cheapest U.S. offer was roughly $60 per tonne more than the wheat Egypt bought earlier this month from France and Romania

After the close, Egypt issued another tender, seeking offers of worldwide origin

Most-active CBOT March wheat fell seven cents, or 1.3 percent, to $5.27-3/4 per bushel while Kansas City hard red winter wheat fell 2.5 percent. The closely watched spread between the two wheat classes tumbled to a two-month low, with Kansas City wheat priced at a roughly 20-cent premium to Chicago

“We’re reacting to the Egypt tender being cancelled. It’s a reminder of how far out of the market we are,” McCambridge said

Wheat fell from the highest levels in a month while soybean futures drifted from a five-week peak reached earlier in the session.

CBOT March soybeans finished 12 cents lower at $9.95-3/4 per bushel on profit taking.

CBOT March corn was down 5-3/4 cents at $3.83-3/4 after touching a one-week high on Tuesday

South America is in the early phases of record-large soybean harvests while there still are plentiful supplies of both soybeans and corn after record U.S. harvests last autumn

“I remain fundamentally bearish on soybeans with a large Brazilian soy crop now arriving,” said Stefan Vogel, head of agricultural commodity markets research at Rabobank.

“After the Chinese and Asian Lunar New Year holidays we are likely to see significantly more Brazilian export activity.”

“Corn is currently drifting, with little new price-driving factors,” Vogel said.

Light crude oil nearby futures in New York were down $1.39 to US$52.14 per barrel as oil stocks built up in the U.S.

The Canadian dollar at noon was US80.29 cents, down from US80.63 cents the previous trading day. The U.S. dollar at noon was C$1.2455.

The Toronto Stock Exchange’s S&P/TSX composite index ended down 71.86 points, or 0.47 percent, at 15,212.75.

The Dow Jones industrial average fell 17.73 points, or 0.1 percent, to 18,029.85, the S&P 500 lost 0.66 points, or 0.03 percent, to 2,099.68 and the Nasdaq Composite added 7.10 points, or 0.14 percent, to 4,906.36

Winnipeg ICE Futures Canada dollars per tonne

Canola Mar 2015      469.90     -2.90       -0.61%

Canola May 2015     463.10     -2.90       -0.62%

Canola Jul 2015       458.20     -3.20       -0.69%

Canola Nov 2015     447.30     -3.10       -0.69%

Canola Jan 2016      449.20     -3.10       -0.69%

Milling Wheat Mar 2015    226.00     -2.00       -0.88%

Milling Wheat May 2015    234.00     -3.00       -1.27%

Milling Wheat Jul 2015     236.00     -3.00       -1.26%

Durum Wheat Mar 2015   333.00     unch 0.00%

Durum Wheat May 2015   323.00     unch 0.00%

Durum Wheat Jul 2015     313.00     unch 0.00%

Barley Mar 2015      185.00     unch 0.00%

Barley May 2015      187.00     unch 0.00%

Barley Jul 2015       189.00     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 995.75     -12   -1.19%

Soybeans May 2015 999.25     -12.5       -1.24%

Soybeans Jul 2015   1004       -12.75     -1.25%

Soybeans Aug 2015 1002.75   -13.25     -1.30%

Soybeans Sep 2015 988  -11.25     -1.13%

Soybeans Nov 2015 976.5      -9.75       -0.99%

Soybean Meal Mar 2015   338.6      -3.7  -1.08%

Soybean Meal May 2015  331.5      -3.7  -1.10%

Soybean Meal Jul 2015    328.7      -3.7  -1.11%

Soybean Oil Mar 2015      32.01      -0.31       -0.96%

Soybean Oil May 2015     32.2 -0.32       -0.98%

Soybean Oil Jul 2015       32.36      -0.33       -1.01%

Corn Mar 2015 383.75     -5.75       -1.48%

Corn May 2015 392  -5.75       -1.45%

Corn Jul 2015  399.5      -6    -1.48%

Corn Sep 2015 406.5      -5.75       -1.39%

Corn Dec 2015 414.5      -6    -1.43%

Oats Mar 2015 274.25     -3.75       -1.35%

Oats May 2015 271.5      -4.75       -1.72%

Oats Jul 2015  275  -4.5  -1.61%

Oats Sep 2015 280.25     -4.25       -1.49%

Oats Dec 2015 283.25     -3.5  -1.22%

Wheat Mar 2015      527.75     -7    -1.31%

Wheat May 2015     523.75     -8    -1.50%

Wheat Jul 2015       526  -9    -1.68%

Wheat Sep 2015      534  -9    -1.66%

Wheat Dec 2015     546.25     -9.5  -1.71%

Minneapolis

Spring Wheat Mar 2015   582  -6.75       -1.15%

Spring Wheat May 2015   580.25     -7.25       -1.23%

Spring Wheat Jul 2015     582  -7    -1.19%

Spring Wheat Sep 2015   588.25     -7.25       -1.22%

Spring Wheat Dec 2015   599  -6.5  -1.07%

Kansas City

Hard Red Wheat Mar 2015       548  -14.25     -2.53%

Hard Red Wheat May 2015      549.5      -13.25     -2.35%

Hard Red Wheat Jul 2015 555.5      -12.75     -2.24%

Hard Red Wheat Sep 2015      567  -11.75     -2.03%

Hard Red Wheat Dec 2015      581.25     -11.5       -1.94%

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