Wheat dominated the crop markets today, arising from its slumber on a short covering rally, possibly sparked by concerns about excess moisture in the U.S. southern Plains.
Chicago wheat soared seven percent, the biggest gainer on the day. Kansas July wheat rose 6.7 percent and Minneapolis spring wheat rose 4.9 percent.
The market was subject to a big short covering rally because there was a massive net short in Chicago wheat. That means most participants had positions where they would profit if the price fell.
It didn’t take much to trigger the rally. The U.S. buck weakened a little, weekly exports were slightly better than expected and worries developed about too much rain in the U.S. southern Plains.
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The wheat crop there is nearing maturity and rain at this point could hurt quality and protein.
“Any news that is out there is basically an excuse. There has been some chatter about maybe some export business, but the larger thing is that we have built up record large short positions,” said Arlan Suderman, market analyst with Water Street Solutions told Reuters.
“Particularly with the dollar being weaker, you increase money flow into the broader commodity sector, and you start getting these fund managers saying ‘I am going to take some profits on my big short positions.'”
In canola, the July contract edged up a few cents a bushel on short covering.
Farmers are busy with seeding and so are not delivering.
Today, Saskatchewan Agriculture said seeding is 34 percent complete in the province, up from the five-year average of nine percent.
The temperature in large areas of the central prairies is expected to fall well below the freezing point on Saturday night-Sunday morning.
The forecast low for Saskatchewan centres, including Saskatoon, Rosetown and North Battleford is -5C. Newly emerged canola could be damaged.
Sunday night is also expected to have frost, particularly in Manitoba.
Soybeans did not rise today.
They were pressured after Informa Economics projected the soybean area at 87.2 million acres, more than 2.5 million acres above the U.S. Agriculture Department’s current forecast.
Soybean supply is ample and stocks could rise in the new year.
The USDA this week projected that U.S. 2015-16 soy ending stocks would reach 500 million bushels, up from 350,000 tonnes at the end of the current crop year and the most in nine years, based on its plantings forecast of 84
Corn followed wheat higher, even though weekly export sales were less than expected.
Informa put U.S. 2015 corn plantings at 88.737 million acres, slightly below USDA’s March forecast of 89.199 million.
Light crude oil nearby futures in New York were down 62 cents to US$59.88 per barrel.
The Canadian dollar at noon was US83.39 cents, down from 83.68 cents the previous trading day. The U.S. dollar at noon was C$1.1992.
The TSX composite rose 47.40 points or 0.32 percent to 15,028.12
The Dow Jones industrial average rose 191.75 points, or 1.06 percent, to 18,252.24.
The S&P 500 gained 22.59 points, or 1.08 percent, to 2,121.07 a new record high.
The Nasdaq Composite added 69.10 points, or 1.39 percent, to 5,050.80.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2015Â Â Â Â Â Â Â Â 456.20Â Â Â Â Â Â Â Â +1.70Â Â Â Â Â Â Â Â +0.37%
Canola Nov 2015Â Â Â Â Â Â Â Â 450.20Â Â Â Â Â Â Â Â +2.70Â Â Â Â Â Â Â Â +0.60%
Canola Jan 2016Â Â Â Â Â Â Â Â 451.90Â Â Â Â Â Â Â Â +2.40Â Â Â Â Â Â Â Â +0.53%
Canola Mar 2016Â Â Â Â Â Â Â Â 451.20Â Â Â Â Â Â Â Â +2.40Â Â Â Â Â Â Â Â +0.53%
Canola May 2016Â Â Â Â Â Â Â Â 451.70Â Â Â Â Â Â Â Â +2.40Â Â Â Â Â Â Â Â +0.53%
Milling Wheat Jul 2015Â Â Â Â Â Â Â Â 210.00Â Â Â Â Â Â Â Â +9.00Â Â Â Â Â Â Â Â +4.48%
Milling Wheat Oct 2015Â Â Â Â Â Â Â Â 215.00Â Â Â Â Â Â Â Â +10.00Â Â Â Â Â Â Â Â +4.88%
Milling Wheat Dec 2015Â Â Â Â Â Â Â Â 215.00Â Â Â Â Â Â Â Â +10.00Â Â Â Â Â Â Â Â +4.88%
Durum Wheat Jul 2015        298.00        unch        0.00%
Durum Wheat Oct 2015        298.00        unch        0.00%
Durum Wheat Dec 2015        303.00        unch        0.00%
Barley Jul 2015Â Â Â Â Â Â Â Â 194.00Â Â Â Â Â Â Â Â -3.00Â Â Â Â Â Â Â Â -1.52%
Barley Oct 2015Â Â Â Â Â Â Â Â 177.00Â Â Â Â Â Â Â Â -3.00Â Â Â Â Â Â Â Â -1.67%
Barley Dec 2015Â Â Â Â Â Â Â Â 182.00Â Â Â Â Â Â Â Â -3.00Â Â Â Â Â Â Â Â -1.62%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jul 2015Â Â Â Â Â Â Â Â 957Â Â Â Â Â Â Â Â -0.25Â Â Â Â Â Â Â Â -0.03%
Soybeans Aug 2015        950.25        unch        0.00%
Soybeans Sep 2015Â Â Â Â Â Â Â Â 940.25Â Â Â Â Â Â Â Â +1.5Â Â Â Â Â Â Â Â +0.16%
Soybeans Nov 2015Â Â Â Â Â Â Â Â 937Â Â Â Â Â Â Â Â +2.5Â Â Â Â Â Â Â Â +0.27%
Soybeans Jan 2016Â Â Â Â Â Â Â Â 944Â Â Â Â Â Â Â Â +3Â Â Â Â Â Â Â Â +0.32%
Soybeans Mar 2016Â Â Â Â Â Â Â Â 949.25Â Â Â Â Â Â Â Â +2.75Â Â Â Â Â Â Â Â +0.29%
Soybean Meal Jul 2015Â Â Â Â Â Â Â Â 302.2Â Â Â Â Â Â Â Â -0.2Â Â Â Â Â Â Â Â -0.07%
Soybean Meal Aug 2015        300.7        unch        0.00%
Soybean Meal Sep 2015        298.9        unch        0.00%
Soybean Oil Jul 2015Â Â Â Â Â Â Â Â 33.34Â Â Â Â Â Â Â Â +0.1Â Â Â Â Â Â Â Â +0.30%
Soybean Oil Aug 2015Â Â Â Â Â Â Â Â 33.37Â Â Â Â Â Â Â Â +0.1Â Â Â Â Â Â Â Â +0.30%
Soybean Oil Sep 2015Â Â Â Â Â Â Â Â 33.4Â Â Â Â Â Â Â Â +0.09Â Â Â Â Â Â Â Â +0.27%
Corn Jul 2015Â Â Â Â Â Â Â Â 368Â Â Â Â Â Â Â Â +5.75Â Â Â Â Â Â Â Â +1.59%
Corn Sep 2015Â Â Â Â Â Â Â Â 374.5Â Â Â Â Â Â Â Â +6.25Â Â Â Â Â Â Â Â +1.70%
Corn Dec 2015Â Â Â Â Â Â Â Â 384.75Â Â Â Â Â Â Â Â +6.25Â Â Â Â Â Â Â Â +1.65%
Corn Mar 2016Â Â Â Â Â Â Â Â 395.5Â Â Â Â Â Â Â Â +5.75Â Â Â Â Â Â Â Â +1.48%
Corn May 2016Â Â Â Â Â Â Â Â 403Â Â Â Â Â Â Â Â +5.75Â Â Â Â Â Â Â Â +1.45%
Oats Jul 2015Â Â Â Â Â Â Â Â 247.5Â Â Â Â Â Â Â Â +11.75Â Â Â Â Â Â Â Â +4.98%
Oats Sep 2015Â Â Â Â Â Â Â Â 253.5Â Â Â Â Â Â Â Â +11.75Â Â Â Â Â Â Â Â +4.86%
Oats Dec 2015Â Â Â Â Â Â Â Â 262.5Â Â Â Â Â Â Â Â +11.75Â Â Â Â Â Â Â Â +4.69%
Oats Mar 2016Â Â Â Â Â Â Â Â 269Â Â Â Â Â Â Â Â +11.5Â Â Â Â Â Â Â Â +4.47%
Oats May 2016Â Â Â Â Â Â Â Â 275.5Â Â Â Â Â Â Â Â +11.25Â Â Â Â Â Â Â Â +4.26%
Wheat Jul 2015Â Â Â Â Â Â Â Â 514.25Â Â Â Â Â Â Â Â +32.75Â Â Â Â Â Â Â Â +6.80%
Wheat Sep 2015Â Â Â Â Â Â Â Â 521Â Â Â Â Â Â Â Â +33Â Â Â Â Â Â Â Â +6.76%
Wheat Dec 2015Â Â Â Â Â Â Â Â 536.25Â Â Â Â Â Â Â Â +31.75Â Â Â Â Â Â Â Â +6.29%
Wheat Mar 2016Â Â Â Â Â Â Â Â 551.25Â Â Â Â Â Â Â Â +30.25Â Â Â Â Â Â Â Â +5.81%
Wheat May 2016Â Â Â Â Â Â Â Â 561.5Â Â Â Â Â Â Â Â +30Â Â Â Â Â Â Â Â +5.64%
Minneapolis
Spring Wheat Jul 2015Â Â Â Â Â Â Â Â 566.5Â Â Â Â Â Â Â Â +26.5Â Â Â Â Â Â Â Â +4.91%
Spring Wheat Sep 2015Â Â Â Â Â Â Â Â 577.5Â Â Â Â Â Â Â Â +25.75Â Â Â Â Â Â Â Â +4.67%
Spring Wheat Dec 2015Â Â Â Â Â Â Â Â 592.25Â Â Â Â Â Â Â Â +26.25Â Â Â Â Â Â Â Â +4.64%
Spring Wheat Mar 2016Â Â Â Â Â Â Â Â 606.5Â Â Â Â Â Â Â Â +26.5Â Â Â Â Â Â Â Â +4.57%
Spring Wheat May 2016Â Â Â Â Â Â Â Â 615.25Â Â Â Â Â Â Â Â +27Â Â Â Â Â Â Â Â +4.59%
Kansas City
Hard Red Wheat Jul 2015Â Â Â Â Â Â Â Â 543.25Â Â Â Â Â Â Â Â +33.75Â Â Â Â Â Â Â Â +6.62%
Hard Red Wheat Sep 2015Â Â Â Â Â Â Â Â 553Â Â Â Â Â Â Â Â +33.75Â Â Â Â Â Â Â Â +6.50%
Hard Red Wheat Dec 2015Â Â Â Â Â Â Â Â 567.25Â Â Â Â Â Â Â Â +33Â Â Â Â Â Â Â Â +6.18%
Hard Red Wheat Mar 2016Â Â Â Â Â Â Â Â 579.5Â Â Â Â Â Â Â Â +32.75Â Â Â Â Â Â Â Â +5.99%
Hard Red Wheat May 2016Â Â Â Â Â Â Â Â 587.75Â Â Â Â Â Â Â Â +33Â Â Â Â Â Â Â Â +5.95%
