Friday market wrap: Feed grain prices falling, wheat hangs on to gains

As prairie farmers fearfully looked at Victoria Day weekend weather forecasts calling for sub-zero temperatures, feed grain marketers looked back on a week in which prices chilled too.

“For the guys who are holding on for a better number (on feed grain prices), I don’t know if that’s going to happen,” said Kyle Sinclair of Eisses Grain.

“It’s catching a lot of guys off-guard. We’re used to seeing everything white hot now, not declining with less and less demand.”

Unlike most years when mid-May is the middle of the seasonal feed grains rally, prices have settled back in the last few weeks as feeders have covered needs, truck deliveries haven’t been bogged down by road ban problems and early-seeded crops suggest feeders might not have to wait long for new crop supplies.

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“In their minds, July is the only month that might potentially worry them,” said Sinclair of cattle feeders.

In futures markets, most crops were down a few cents on Friday, following a week of unexciting markets.

Except, of course, for Thursday’s massive rally in wheat prices, which provided an exciting interlude in the markets. Wheat contracts held most of their gains from Thursday through the Friday close. Chicago’s leading soft red winter wheat contract gained about six percent on the week.

Canola was slightly weaker on the week, following fast seeding progress on the western Prairies. Environment Canada forecasts temperatures dipping below freezing in Alberta on Sunday morning, while Saskatchewan and Manitoba are set to see temperatures as low as -4C on Monday morning..

Good weather in the U.S. Midwest soured the price outlook for soybeans. Soybeans fell about 2.4 percent over the week.

Corn was a bit stronger on the week, with some worries about frost potentially hitting early-planted crops.

Oats continued a jagged uptrend that has been in play for a couple of weeks. On Friday, oats again even as every other crop was down because, well, that’s what oats do.

Soybean crushing is surging, with the American National Oilseed Processors Association reporting the highest ever crushings for April. Soybean meal April exports were also a record for that month.

Canadian canola crushings surged over the week ending May 13, rising by 24 percent over the week before, but still only moving at less than 70 percent capacity.

So far this year canola crushing is up by almost four percent from last year at this time.

The Standard and Poor’s 500 hit yet another record Friday, and that’s a good way to head into the weekend. Hit a market record, chuck some burgers and sausages on the barbecue, open a beer and celebrate Victoria Day weekend.

Unless you’re too busy farming.

Light crude oil nearby futures in New York were down 19 cents to US$59.69 per barrel.

The Canadian dollar at noon was US83.26 cents, down from 83.39 cents the previous trading day. The U.S. dollar at noon was C$1.2010.

For the week, TSX composite fell 0.4 percent, the Dow rose 0.4 percent, the S&P rose 0.3 percent and the Nasdaq added 0.9 percent.

Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2015    455.30    -0.90    -0.20%
Canola Nov 2015    449.20    -1.00    -0.22%
Canola Jan 2016    450.00    -1.90    -0.42%
Canola Mar 2016    449.80    -1.40    -0.31%
Canola May 2016    450.30    -1.40    -0.31%

Milling Wheat Jul 2015    209.00    -1.00    -0.48%
Milling Wheat Oct 2015    213.00    -2.00    -0.93%
Milling Wheat Dec 2015    213.00    -2.00    -0.93%

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 2015    192.00    -2.00    -1.03%
Barley Oct 2015    177.00    unch    0.00%
Barley Dec 2015    182.00    unch    0.00%

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

Chicago
Soybeans Jul 2015    953.25    -3.75    -0.39%
Soybeans Aug 2015    946.5    -3.75    -0.39%
Soybeans Sep 2015    937    -3.25    -0.35%
Soybeans Nov 2015    934.5    -2.5    -0.27%
Soybeans Jan 2016    941.25    -2.75    -0.29%
Soybeans Mar 2016    946.75    -2.5    -0.26%

Soybean Meal Jul 2015    303.3    +1.1    +0.36%
Soybean Meal Aug 2015    301.2    +0.5    +0.17%
Soybean Meal Sep 2015    299.5    +0.6    +0.20%

Soybean Oil Jul 2015    33.07    -0.27    -0.81%
Soybean Oil Aug 2015    33.12    -0.25    -0.75%
Soybean Oil Sep 2015    33.16    -0.24    -0.72%

Corn Jul 2015    365.5    -2.5    -0.68%
Corn Sep 2015    372.5    -2    -0.53%
Corn Dec 2015    382.75    -2    -0.52%
Corn Mar 2016    393.5    -2    -0.51%
Corn May 2016    400.75    -2.25    -0.56%

Oats Jul 2015    248.5    +1    +0.40%
Oats Sep 2015    253.75    +0.25    +0.10%
Oats Dec 2015    262.5    unch    0.00%

Oats Mar 2016    268.5    -0.5    -0.19%
Oats May 2016    275.25    -0.25    -0.09%

Wheat Jul 2015    511    -3.25    -0.63%
Wheat Sep 2015    517.5    -3.5    -0.67%
Wheat Dec 2015    532    -4.25    -0.79%
Wheat Mar 2016    546.25    -5    -0.91%
Wheat May 2016    555.75    -5.75    -1.02%

Minneapolis
Spring Wheat Jul 2015    561.25    -5.25    -0.93%
Spring Wheat Sep 2015    572.75    -4.75    -0.82%
Spring Wheat Dec 2015    587.25    -5    -0.84%
Spring Wheat Mar 2016    600.25    -6.25    -1.03%
Spring Wheat May 2016    609.25    -6    -0.98%

Kansas City
Hard Red Wheat Jul 2015    541.75    -1.5    -0.28%
Hard Red Wheat Sep 2015    551.25    -1.75    -0.32%
Hard Red Wheat Dec 2015    567.75    +0.5    +0.09%
Hard Red Wheat Mar 2016    580    +0.5    +0.09%
Hard Red Wheat May 2016    587.75    unch    0.00%