Ag commodities tread water after stock market carnage

While the world’s stock markets mopped up the blood from Monday’s massive selloff and Chinese carnage, the grain markets treaded water, not sure which way to move.

“We’re not seeing any big push for either buying or selling,” said analyst Rich Nelson of Allendale, Inc. of McHenry, Illinois.

“It still looks like we’ve gotten through the shock of this shock-and-awe event but we still haven’t gotten back to supply and demand fundamentals.”

Wheat, corn and oats closed down a few cents Tuesday while soybeans and its components ended up, with canola finishing mixed.

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Overnight the Chinese government slashed rates in an attempt to end the rout in Chinese stocks, something that caused both European and U.S. equities to bounce back from much of the Monday losses.

That removed the dynamic that threatened to drive down crop prices.

“We are seeing some of the liquidation pressure on grains subside,” said Nelson.

Still, grain prices are weak, with spring wheat prices hitting a five-year low Monday.

Much of the U.S. spring wheat crop is already harvested, so there is limited danger from frost now.

U.S. crops seem to be in relatively good condition, according to the U.S. Department of Agriculture.

Cattle futures gained back about a third of their Monday losses on Tuesday, while hog prices have been bouncing back since Friday.

Most commodity markets were flat Tuesday, with metal and financials recording losses.

Brent crude oil bounced back about 50 cents a barrel.

As Tuesday wore on, the U.S. stock markets gave up most of their bounce-back gains, but no signs of a return to panic could be seen.

Contact ed.white@producer.com

Light crude oil nearby futures in New York were up $1.07 to US$39.31 per barrel.

The Canadian dollar at noon was US75.21 cents, down from 75.68 cents the previous trading day. The U.S. dollar at noon was C$1.3296.

Winnipeg ICE Futures Canada dollars per tonne

Canola Nov 2015 477.40 -0.30 -0.06%

Canola Jan 2016 480.70 +2.50 +0.52%

Canola Mar 2016 482.20 +4.20 +0.88%

Canola May 2016 482.10 +5.10 +1.07%

Canola Jul 2016 480.20 +4.90 +1.03%

Milling Wheat Oct 2015 223.00 -3.00 -1.33%

Milling Wheat Dec 2015 223.00 -3.00 -1.33%

Milling Wheat Mar 2016 227.00 -3.00 -1.30%

Durum Wheat Oct 2015 335.00 unch 0.00%

Durum Wheat Dec 2015 335.00 unch 0.00%

Durum Wheat Mar 2016 340.00 unch 0.00%

Barley Oct 2015 200.60 unch 0.00%

Barley Dec 2015 200.60 unch 0.00%

Barley Mar 2016 202.60 unch 0.00%

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

Chicago

Soybeans Sep 2015 894.25 +1.5 +0.17%

Soybeans Nov 2015 877.75 +3.75 +0.43%

Soybeans Jan 2016 881 +3.5 +0.40%

Soybeans Mar 2016 881.25 +5 +0.57%

Soybeans May 2016 884.5 +5.75 +0.65%

Soybeans Jul 2016 888.25 +5 +0.57%

Soybean Meal Sep 2015 327.6 +1.2 +0.37%

Soybean Meal Oct 2015 320.8 +2.2 +0.69%

Soybean Meal Dec 2015 317.1 +1.9 +0.60%

Soybean Oil Sep 2015 26.82 +0.27 +1.02%

Soybean Oil Oct 2015 26.91 +0.28 +1.05%

Soybean Oil Dec 2015 27.15 +0.29 +1.08%

Corn Sep 2015 365.5 -3.25 -0.88%

Corn Dec 2015 377 -3.5 -0.92%

Corn Mar 2016 388 -3.75 -0.96%

Corn May 2016 394.25 -3.75 -0.94%

Corn Jul 2016 398.25 -3.75 -0.93%

Oats Sep 2015 212.75 -3 -1.39%

Oats Dec 2015 219.25 -1.5 -0.68%

Oats Mar 2016 225 -2.75 -1.21%

Oats May 2016 233 -2 -0.85%

Oats Jul 2016 234 -2 -0.85%

Wheat Sep 2015 495 -8.25 -1.64%

Wheat Dec 2015 499.5 -8.5 -1.67%

Wheat Mar 2016 505.75 -6.75 -1.32%

Wheat May 2016 509.25 -6.5 -1.26%

Wheat Jul 2016 511.5 -6.25 -1.21%

Minneapolis

Spring Wheat Sep 2015 496.75 -7.75 -1.54%

Spring Wheat Dec 2015 514 -8 -1.53%

Spring Wheat Mar 2016 530.75 -8.5 -1.58%

Spring Wheat May 2016 541.5 -8.5 -1.55%

Spring Wheat Jul 2016 551.75 -8.25 -1.47%

Kansas City

Hard Red Wheat Sep 2015 466 -9.75 -2.05%

Hard Red Wheat Dec 2015 489 -8.5 -1.71%

Hard Red Wheat Mar 2016 503.25 -8.25 -1.61%

Hard Red Wheat May 2016 513 -8 -1.54%

Hard Red Wheat Jul 2016 523 -7.5 -1.41%

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